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2003-05 Budget Brief: JFC Budget Scheme Pits Needy Against Disabled

Joint Finance Committee budget is an assault on local control of schools

Once again, education groups are voicing opposition to a K-12 education plan approved by legislative leaders. The Joint Finance Committee (JFC) K-12 education package was adopted on Wednesday, June 4. Although these budget revisions are being offered to the full Legislature for review, the vote for passage in committee was a party-line (12 Republicans to 4 Democrats) vote. The JFC plan significantly reduces the ability of local districts to generate resources for operating schools. The package does include an overall increase of $135 in state aid to schools, but significantly reduces the per-pupil allowable increase under the revenue caps at the same time. The end result is a dramatic assault on local control that will jeopardize our great schools.

Revenue cap rollback would devastate schools

The Republican-led Finance Committee cut how much revenue local school officials can generate to educate our children by at least $300 million over the next two years. This loss of revenue is based on reducing the revenue limits per-pupil adjustment to $120 in 2003-04 and $100 in 2004-05 and thereafter. This is a reduction from the current law estimates of $236 in 2003-04 and $241 in 2004-05 offered in Governor Doyle's budget. A complete district-by-district summary of the revenue cap rollback will be posted Thursday, June 5, on the Department of Revenue Web site at http://www.dor.state.wi.us/report/p.html#prop.

JFC budget pits the needy against the disabled

Unfortunately, the revenue loss for some districts could actually be much worse. The JFC package also cuts the state investment in 4-year-old kindergarten in half; diminishes the state commitment to keep the SAGE class size reduction program in grades K-3; and reduces state funding for other categorical aid programs. These are programs that place kids in classrooms that work. Finally, the funds taken from SAGE and other categorical programs are diverted to special education. This will pit the desire of schools to help the youngest, most needy children against providing mandated state and federal programs for disabled children. See the full OnWEAC story along with Governor Doyle's statement.

Republicans assault public employee health care

Republicans have renewed their attack on the right of public employees to bargain health care by allowing school districts, technical college districts and other units of government to unilaterally change their health insurance carrier. And worse yet, this change would be a prohibited subject of bargaining. In short, health insurance decisions would be left to the discretion of the employer. The employer would determine the quality, the cost and the deductibles of insurance benefits. WEAC strongly believes that recruiting and maintaining quality staff is important to great schools. Negotiating decisions about health insurance is an important part of that process.

K4 cut in half

The JFC budget cuts $23 million in state aid to Four-year-old kindergarten annually. This is done by adjusting how children are counted in the program. Under current law, a K4 pupil counts as 0.5 or 0.6 of a pupil for the purpose of generating state aid. The Republican plan changes that to a 0.25 pupil count. It is estimated that this would reduce revenue limit authority by $38 million annually to those districts operating a K4 program. WEAC strongly believes that K4 programs should remain fully funded. Wisconsin was the first state in the nation to offer K4. It is a proven program that should be continued.

Voucher program gets major expansion

In what can only be described as a total partisan reversal of committee procedures, the Republicans added a host of non-fiscal policy items to the budget by expanding the Milwaukee Voucher program. Their budget plan would: lift the cap on the number of kids; remove the income eligibility criteria; allow pupils from anywhere to join voucher schools and expand the program beyond the city to the County of Milwaukee. This move by Republicans is especially insulting to public educators. The motion by Democrats to repeal the QEO was never given a vote. It was unilaterally ruled to be non-fiscal policy by the JFC co-chairs and stripped from the budget on two separate occasions.

DPI and state employees take hits

The Republican scheme imposes further cuts on the Department of Public Instruction. The plan would increase the governor's base budget reductions from 10% to 15% for DPI state operations, except for residential schools. Also, state employee compensation reserves are cut by $20 million; part-time state employees are required to pay more for health insurance and other state employee benefits are rolled back.

$14.8 million WTCS funding restored

The JFC budget restores $14.8 million in current Wisconsin Technical College funding aimed primarily at expanding capacity in nursing and other critically needed healthcare training programs. However, the JFC put the WTCS under the levy freeze in the same motion. The categorical aid had previously been cut from the WTCS budget by the JFC.

WTCS placed under new levy freeze

The inclusion of a WTCS levy freeze in the JFC package is extremely harmful to economic recovery and to the ability of the WTCS to provide high-skill, high-wage training and education programs. WEAC and the WTCS Boards Association agree that a levy freeze is an inappropriate intrusion on local governments that are working hard to meet the state's economic challenges. The freeze would allow total levies (operations and debt) to go up by no more than 2.6% per year through July 1, 2006. This creates no savings toward the state budget deficit but hamstrings economic recovery that grows the state out of the deficit.

Teacher license fees raised to pay for mentoring

Fees would be raised from $100 to $150 for initial instate and renewal teacher and administrator licenses under the JFC plan. The $1.5 million raised by the fee hike would be used to fund mentoring grants required under the new PI 34, Wisconsin Administrative Code. Thus, new teachers would be required to essentially pay for their own mentoring programs during their first three years on the job.

QEO repeal still part of negotiations

The Republican co-chairs of the JFC refused to give repeal of the QEO a vote in committee calling it non-fiscal policy. However, on the last day of JFC debate, they included several non-fiscal policy items in their final package. WEAC continues lobbying efforts to repeal the QEO as budget negotiations move to the Senate and Assembly. WEAC strongly believes that the QEO should be repealed as part of the state budget and that it is time to end a decade of this unfair treatment.

Make up of school finance commission dictated to governor

In another move to place policy in the budget, the JFC plan dictates to the governor how to establish a school finance commission. The motion creates a 12-member K-12 School Finance Commission charged with examination of the K-12 funding system and the following issues: (a) revenue caps; (b) the equalization aid formula; (c) the QEO; (d) school finance equity; (e) school district health insurance costs; and (f) any other issues the governor, or other members of the commission request.

Act now by contacting your legislators

Lobby your state representative and state senator by visiting the Cyberlobby at the Members Only site of OnWEAC . Working together, if we act immediately to contact our legislators, we can convince them to pass a budget that maintains a commitment to provide every kid with a great school.

Remaining budget schedule

The earliest the budget bill will get to the Senate floor is the week of June 16. A briefing for Senators is currently being planned for Thursday, June 12. The Assembly will also hold a briefing on the Finance version of the budget Thursday, June 12. The floor schedule depends on when the budget changes are drafted and members can caucus and prepare amendments to the measure. There are no floor sessions scheduled for next week.

For more information

If you have comments or questions about this 2003-05 Budget Brief, please contact Bob Burke, WEAC Legislative Coordinator, at burkeb@weac.org or by phone at 800-362-98034 ext 254.

Posted June 5, 2003

At the Capitol News Archives