Earlier in this series, we noted that the state budget is reducing general aid to schools by nearly $750 million over the biennium (see Way #1: Massive Cuts to School Funding Threaten Wisconsin’s Tradition of High-Quality Education), and withdrawing more than $45 million in state support for specific programs in Wisconsin school districts (Way #18: Cuts to K-12 Education Jeopardize Educational Opportunities for Future Workforce). The state budget also limits the amount of money districts can raise at the local level through the property tax.

To do so, the budget reduces the revenue limit for school districts, which restricts the amount of money schools can receive from general school aids and property taxes combined. The revenue limit will decrease by 5.5% in 2011-12 and stay at that same level for 2012-13.

The decrease in revenue limits means that not only will many school districts receive less in state aid, but they will also have to reduce the amount of revenue they raise at the local level (unless voters approve a referendum increasing the revenue limit). For example, if a school district loses $350 in general aid per pupil, but the revenue limit decreases $500 per pupil, the district will have to decrease property taxes by $150 per student to comply with the lower revenue limit. A study by University of Wisconsin professor Andrew Reschovsky projected that the majority of districts will need to decrease their levy to stay under the revenue limits.The restriction on districts’ ability to raise money at the local level could have serious consequences for our public education system, especially when coupled with steep cuts in state aid. Some districts are finding that the ability to unilaterally require higher employee contributions to fringe benefits – a power given by the controversial Act 10 – has helped control costs and mitigate the cuts in aid and levying ability. But the extent to which other districts—for example, those with multiyear contracts already in place–will be able to take advantage of Act 10 powers in the short-term remains unclear.  The longer-term effects on schoolchildren are also unclear, but very worrisome, particularly since many districts will have to make even deeper cuts in 2012 (as federal Recovery Act funds dry up).

Here’s what the Wisconsin Association of School Boards has to say on this issue:

“Deep, historic cuts to general school aids of nearly $800 million is one of the more prominent features of the 2011-13 biennial budget adversely affecting Wisconsin’s public schools. But, less visible and talked about, a 5.5 percent cut to revenue limits further exacerbates an already difficult situation. Revenue limits restrict the amount of resources local school board members are allowed to take from the local tax levy.

According to the Department of Public Instruction the resources lost by local school districts will exceed $1.6 billion over the biennium – an average cut of $550 per student – compared to the law governing revenue limits after passage of the 2009-11 budget. After 18 years of state imposed revenue limits that required many school districts to make annual cuts to cost-to-continue programming, the evidence is overwhelming that the school funding formula needs re-writing.”

Instead of balancing the budget on the backs of students, we should recognize that public schools are one of the cornerstones of our state’s economy. Going forward, we should work to provide the resources necessary for Wisconsin’s children to receive a high-quality education. Let’s make investments in today’s education system to help insure that we have the well-educated workforce and citizenry we’ll need for the future.

Tamarine Cornelius

Tomorrow—Way #31: The Budget and Beyond

About the series: “31 Ways in 31 Days” is a series of posts to the WCCF blog exploring the recently-passed biennial budget’s impact on children and families in Wisconsin. Each day in July, we are posting a description of one way the budget will affect kids and families, with an eye toward what should be done going forward to help improve outcomes and move us closer to the goal of making Wisconsin a place where every child has the opportunity to grow up, learn, and thrive in a safe, healthy, economically secure home and community.