WEAC Research Paper

Comments by Superintendents Surveyed About the Impact of School Revenue Caps

"We are a low cost district with a large cash balance."

"Extremely difficult to obtain any specifics from DPI or any other source."

"We had received an AODA Grant for a part-time AODA Coordinator the past 3 years. We didn't receive this grant for 1995-96 and may not fill this position again because of the revenue caps."

"In __________, the public likes the revenue caps until a program is cut that affects their kid or themselves."

"Because of increasing enrollments, our union high school district has not been hurt by revenue caps to this point. This will certainly change as enrollments level off and decline."

"Program cuts will be the norm next year (1996-97)."

"I believe in local Boards setting levies. However, is anyone surprised that as people call for more state aides that the state will attach 'strings'?"

"Fifty-six flat aid districts are singled out for shared cost penalties. Hardly seems fair. Thanks for asking."

"We feel continued erosion of our base will seriously affect education in _____."

"We are growing and able to function under the revenue caps."

"3.8% spending on 70% of the budget + 3.0% revenue = -.8% annually. Extend QEO to support staff and teachers within the cap."

"EEN staffing must continue to meet DPI guidelines for pupil/teacher ratios. These dollars take away from other regular teaching positions which need to be filled to reduce class size. EEN programs are definitely taking up disproportionate amount of limited dollars. DPI so-called waiver is smoke."

"If we hadn't had some type of control, we would have had a serious property tax payer revolt."

"Our district is not a good example of the adverse effect of revenue caps as we passed a $950,000 referendum to build and equip an addition and take care of some major maintenance items. We had plenty of money to do what we needed this year. Years to come however, will be a different story. Also, we are growing. What happens when we start declining?"

"So far we have been getting substantial increases in ? aids. 2.1% . . . have enabled us to have more elementary teachers and more secondary teachers."

"With the revenue caps and the beginning financial position of our district, added to a new building and cost of operation, the caps have been very detrimental to our district. Since we are a lower valued district anyway, bringing the aid to 66% could hurt our district and our taxpayer status."

"Short-term caps may not hurt, but force examination of priorities. My concern is long-term."

"It is difficult for me to say that the revenue caps have caused us difficulty since our district has chosen not to even go as high as the caps."

"The caps need flexibility so we can repair buildings/roofs, etc. outside the current limits. New buildings/additions would still need to be taken to the voters."

"The revenue cap is really causing problems. We are delaying capital purchases and upkeep of the building because staffing and related costs eat up 80% of our budget. We can't even provide for computers, etc., unless we go to referendum. That's not worth the effort and time."

"The ability to control increases in salary and benefits will help meet the ceiling of revenue caps - but that ceiling may eventually damage programs as many other costs can not be held to 3.8%."

"The reason the revenue caps haven't hurt us is that our enrollment has increased last year and will increase next year."

"Revenue caps transfer spending guidelines to the state level rather than at the local level. With revenue caps the infrastructure will be difficult to maintain for the long-term community good."

"Cost of new buses increased 10%; paper increased 20%+; textbook costs have skyrocketed; we need a distance learning program (can't afford it); we are entering a tunnel of troubles and see no light! Does anyone at the capital care about kids anymore?"

"Levy limits have increased our spending up to the limit in order to set the highest basis for the next limit."

"Being in a growing enrollment situation helps. Without it, I am not sure what we would do."

"If revenue caps are to remain, districts should still have the opportunity to raise the base level equalizing their expenditures, taking into consideration the additional cost of operation and maintenance of older facilities."

"The revenue caps , along with declining enrollment, are having devastating effects on our district - Help, Help!"

"The major negative impact will be on programs and personnel. I am certain that some form of QEO will be in place while the state is increasing support along with revenue caps."

"Revenue caps will become even more difficult if legislature drops QEO's for teachers. This will place boards between rock and a hard place."

"Most (if not all) long-term improvement/replacement plans of equipment and buildings have come to an abrupt halt because we have declining enrollments, increased EEN students (costs), and a total uncertainty about future funding."

"The decline in enrollments has created an additional problem for the district. The formula for revenue caps works against a district with an enrollment decline. It is like a double negative impact."

"The increase in enrollment will largely be caused by increasing to a full-day kindergarten from a half-day program."

"There should be an exception to the cap for adding needed building space. To have a new school, without being able to operate it, is not prudent."

"As long as the QEO holds, the district will make do, but will not be able to hold on if it comes off. We have two buckets catching water now at the high school."

"We are falling hopelessly behind in technology. We are expelling more students because we don't have the resources to provide adequately for "at risk" adolescents."

"Much of our higher cost maintenance and upkeep is postponed - how long?? We really need the Chapter 67 authority back for board's authority to borrow long-term up to $1 million."

"Revenue caps are a political maneuver of state officials. These same officials complain about federal welfare requirements, fed caps on highway speed, etc. Local issues should be governed locally."

"We are a K-8 with high property value; young families with young children can't afford to move into the ____ School District. As property values go up, aid and enrollment go down. We are trapped."

"We are growing school district in Fox Valley. Revenue caps hurt our education programs and we can't keep up with education technology and computers. Our community wants good education but is dealing with financial restraint."

"The task for the administration and Board in the years to come under the revenue caps and with a declining enrollment is to manage the cutting of programs, services, and personnel."

"Working with _____ Community Development Group Limited Liability Co. to build 1-2 single family homes for families interested in moving into district to increase enrollment and state aid."

"Considering a referendum to exceed revenue caps for maintenance."

"Because our district has increasing enrollments, the revenue caps have not had a major impact. When our growth subsides, we anticipate the caps will force us to cut programs. QEO must be maintained if caps are in place."

"School districts do not have to face difficulty operating under revenue caps if school boards and the public would creatively explore new ways to deliver services. Revenue caps may give us the push we need to create more cost effective ways to receive services."

"Eventually everyone will have at least one referendum to exceed revenue limits each year. When people vote no behind the curtain to raise taxes, we will squeeze until we eventually have 'strikes'."

"Fiscally responsible districts that did not annually budget a 'cushion' are those most likely to feel the impending crunch - as are we."

"Due to increasing enrollment averages we haven't been hit too hard by the caps. If those numbers don't continue to grow, lay-off and program (cuts)."

"While this deals with revenue caps, perhaps the bigger problem is that the tax relief to property owners is perceived as money going towards education. Yes, it is being applied to schools, but we don't see one dime more. That perception causes many to believe the Governor and joint finance are doing the right thing."

"Since our district has been very frugal in the past and is not a program rich district and because our student enrollment is not increasing, the caps over the next five years are going to devastate this district. In addition, in about four to five years our enrollment is projected to decline slightly and at that point I'm not sure our district will be able to survive as a viable education institution."

"Declining enrollment will level out next year - we are biting the bullet now!!"

"We must have a way to deal with declining enrollment in small districts where a saving by reducing staff cannot be realized. Here our classes . . . are likely to have 22 per section, not ??. We can't save in these circumstances."

"Because of our funding mix, we are unique. State adjusts for federal increases immediately. We absorb loss of revenue over a period of time. We lost $500,000 , but can only recover $200,000 a year based on caps. Budget uncertainty makes planning and projections difficult. We have to second guess the feds and the state and that's tough."

"Enrollment increases have helped us in $'s to date. Space needs are the offset as we reach capacity."

"For _____ , the revenue caps have allowed us to 'gain' more revenue."

"If we pay out 3.8% wage/benefit packages to all employee groups, the new $ allowed will not cover wage/benefit cost increases. Programs/services will be reduced due to inflation of other costs."

"Keep the information flowing."

"We will be running a referendum in June for 32,000 for ten years to address the above concerns. We will not have to raise taxes as this 32,000 was the last payment on our building note and was in the 1994-95 budget."

"If revenue caps are permanent, it is imperative to continue QEO provisions!"

"This is my first year as district administrator. Our per pupil cost is $1,000 below the state average now so there is not a lot to cut."

"Declining enrollment districts are hit the hardest by revenue caps. Our district's enrollments average drops by 27 in 1995-96. We lose $5,911.23 for each one , so we lose $159,603 in revenue raising ability because of our 27 student drop. So our costs drop by this much - NO! This as it relates to declining enrollment districts does not make sense and defies logic."

"If we levied to reach the caps, it would be like gaining or passing a small referendum."

"The caps will eventually destroy all 'extras' for the majority Wisconsin Public Schools."

"QEO's reflect a bias against any belt-tightening."

"We were very lucky. The caps followed a year when we had opened a new building. Thus, our tax rate was artificially inflated. Also, we have gained 200 pupils or 26% enrollment from September 1990 to September 1995. All of which left us in a very favorable position."

"Good luck."

"The revenue caps have not hampered district programs to date because of the district's move to full-day everyday kindergarten the year before the revenue caps were implemented."

This document was prepared by Russ Allen, WEAC Professional Development Training Division.