Enrollment Declines to Exacerbate Impact of Revenue Controls
The impact of school district revenue controls is expected to accelerate
statewide as more districts begin to experience enrollment declines, according
to a new report from WEAC Instruction and Professional Development Division
researcher Russ Allen.
“Districts experiencing a decrease in student population continue
to report more cuts (due to revenue controls) than districts with stable
or increasing enrollments. This could become a more serious problem in
the future because enrollments in Wisconsin’s public schools are
expected to peak in 1999 and then begin to decline,” according to
WEAC’s fifth annual study of the impact of revenue controls on school
districts.
The study, based on a survey of school districts, found a continuation
of a trend in which districts are responding to revenue controls by delaying
building maintenance and improvement, putting off the purchase of technology
and cutting educational programs.
In 1997-98, 84% of districts reported making at least one cut in programs
or services to comply with revenue controls. On average, districts made
between five and six cuts. In addition:
- There has been a steady increase in the number of districts using
fund balances to make up for lost revenue – a temporary measure
that reduces emergency funds. In 1997-98, 35% used the fund balance,
up from 21% in 1993-94.
- Fewer than 10% of the districts favored keeping the law the way it
is, while 48% favored complete repeal of revenue controls.
- 87% of districts said they would like school boards to have more flexibility
to exceed the caps.
- 64% of districts indicated that revenue controls have had a negative
effect on them.
- Almost two-thirds of districts said they favor the use of alternative
taxes, such as sales or income taxes, to support schools.
- School property taxes now make up less than half (47%) of the total
property tax bill.
Posted February 9, 1999