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Searching for Equity

Revenue caps worsen school funding disparities

By Barb Brady
WEAC Press Secretary

Milwaukee Public Schools dealt with overcrowding by converting basements and cloakrooms into classrooms.

The Superior School District lacks enough teachers' aides, guidance counselors and psychologists and has no social workers or at-risk or gifted and talented program coordinators.

Beloit schools cut a variety of educational programs.

"These districts and many others are suffering because of the state's school financing system," said WEAC Legal Counsel Bruce Meredith. "The school aid formula, the imposition of revenue caps and a complicated three-tiered funding system are denying equal learning opportunities for many children in Wisconsin simply because of where they live."

Many districts are losing state aid, or not receiving as much as they would have under the previous funding formula, forcing painful decisions that directly affect children's learning opportunities, Meredith said. Many can't raise enough revenue to properly fund educational programs.

"The most recent changes to the system were designed to facilitate property tax relief and not to provide equal educational opportunities for Wisconsin children," Meredith said. "This manipulation has resulted in the state being unable to fulfill its constitutional requirement to provide equal educational opportunities for every child. The system does not recognize that children have different needs, which may require some districts to spend more than others to educate equal numbers of children.

"As long as the government makes property tax relief a higher priority than our children's education, Wisconsin's school funding system will not be fair," said Meredith. "Property tax relief is an important goal; however, we believe our children's needs and education should come first."

Along with the school funding formula, state-imposed revenue caps are creating inequalities in educational opportunities for Wisconsin children.

"Revenue caps place arbitrarily limits on the revenues districts can raise," Meredith said. "As long as revenue caps are in place, many communities will not be allowed to provide top-quality programs for children.

"Children are paying the price of unfair and arbitrary state policies which force districts to delay building repairs and maintenance, delay purchasing textbooks and computers, and cut or eliminate important programs," he said. "Children will suffer as their buildings become unsafe, their classes too large, and they are denied access to the Information Superhighway because their schools can't afford computers or software.

"Equal educational opportunity is one of the cornerstones of our democracy. Public schools educate everyone — no matter what their personal circumstances or socio-economic status. America's founders realized the importance of an educated populace where all citizens are given the opportunity to succeed. Our public school system is what makes our country great."

WEAC has joined a suit brought by more than 100 school districts challenging the state's system of financing education.

WEAC is calling for an equitable school financing formula that would do the following:

  • Provide equal educational opportunities for all students.
  • Make the property tax more fair.
  • Recognize students have different needs, which may require more spending for some districts.
  • Guarantee that every child is provided the opportunity to be prepared for employment, continuing education and productive lives.
  • Reward efficiency in school operations while ensuring poorer districts are able to provide equal educational opportunities.

"Wisconsin's public schools are among the best in the nation, but the financing inequities and revenue caps put our schools at risk," Meredith said. "Most of our students, like their schools, are successful. We must build on what we know works so that every child in every community will leave school prepared for life and the jobs of the future."

How does the new school aid formula hurt poorer districts?

Here's how the Institute for Wisconsin's Future describes the issue:

  1. School Aid Formula: The new "equalization" aid formulas have been changed to benefit wealthier districts, redistributing more than $19 million from districts of moderate and low property wealth to the 35 wealthiest districts in the state.
  2. School Levy Tax Credit: Districts with high property values and low tax rates receive higher amounts of per pupil school levy tax credit than districts with low property wealth and higher tax rates. As a result, wealthier districts receive a greater benefit from the tax credit. The additional allocation of $150 million to school levy credits in the 1995 legislation moved resources toward tax relief for wealthy districts in contradiction to the goal of equalization.

Posted April 28, 1997