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IMPACT OF STATE BUDGET PROPOSAL ON PUBLIC SCHOOLS
BACKGROUND & CONTEXT
Most Kids Attend Public School…
Public Schools (Home District)
Charter Schools
Independent (2r) Charters
Virtual Charter Schools
Voucher Schools
Private Schools (Tuition-Paying)
0 500,000 1,000,000
829,320
29,298
8,412
6,964
26,509
93,500 Overall Enrollment (2013-14)
Public Schools: 875,000
Private Schools: 120,000
Source: Department of Public Instruction. Public School Enrollment Data http://lbstat.dpi.wi.gov/lbstat_pubdata3 Private School Enrollment Data http://lbstat.dpi.wi.gov/lbstat_privdata
• Out of 425 school districts in Wisconsin, approximately 2/3 are rural
• Rural districts cover an average of 170 square miles, which is 50% more than non-rural districts
• Rural districts have an average of 650 students or less than 5 students per square mile
• 36 districts have less than 2 students per square mile
• 96% of districts with less than 1,000 students are rural
Poverty is Growing in WI…Change in Free & Reduced Lunch (2001-2012)
Source: Wisconsin Department of Public Instruction. School Finance Maps. http://dpi.wi.gov/sfs/maps.html
In many rural districts, more than half the students are eligible for free-and-reduced lunch.
Wisconsin FRL Rate Doubles
2001: 21%2012: 43%
And so are the # of Homeless Kids…
Source: Wisconsin Department of Public Instruction. Homeless Children and Youth data: http://homeless.dpi.wi.gov/hmls_data
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
- 2,000 4,000 6,000 8,000
10,000 12,000 14,000 16,000 18,000
5,3
54
6,3
84
7,8
64
8,0
69
9,3
24
10
,94
9
12
,02
7
13
,36
4
15
,50
4
16
,70
9
Homeless Children & Youth In Wisconsin Schools
Half of Wisconsin’s homeless kids can be found in just 10 school districts.
And Poverty Impacts Achievement(2012-13 Report Card Data)
There is a very strong correlation between poverty and school performance.
Avg. FRL
HIGH-poverty, LOW-performing schools
LOW-poverty, HIGH-performing schools
Source: Wisconsin Department of Public Instruction. School and District Report Cards http://reportcards.dpi.wi.gov/
Students are in Fewer DistrictsChange Student Membership (2001-2012)
In 2001, 1/3rd of districts were in declining enrollment.
By 2012, over 2/3rds districts were in declining enrollment.
Today, 75% of our students are located in just 30% of our districts.
Wisconsin FRL Rate Doubles
2001: 21%2012: 43%
Cumulativ
e Enrollment
Percentile
# of District
s
% of District
s 209,535 25% 8 2% 419,387 50% 41 11% 626,834 75% 114 30% 871,551 100% 424 100%
Source: Wisconsin Department of Public Instruction. School Finance Maps. http://dpi.wi.gov/sfs/maps.html
District Enrollment % of DistrictsUnder 1,000 55%Under 3,000 83%Under 10,000 98%
Which Means Rural Districts Have Fewer Kids & Greater
Poverty
Wisconsin FRL Rate Doubles
2001: 21%2012: 43%
Source: Wisconsin Department of Public Instruction. School Finance Maps. http://dpi.wi.gov/sfs/maps.html
SCHOOL FINANCE
The share of the state budget spent on K-12 is at a 20-year low
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
32.6
%
38.4
%
37.7
%
39.1
%
36.8
%
39.5
%
39.4
%
39.9
%
43.1
%
39.8
%
40.1
%
39.3
%
38.1
%
37.6
%
37.3
%
37.1
%
34.1
%
33.1
%
33.3
%
32.4
%
K-12 School Aids as a % of the State General Fund
Pe
rce
nta
ge
of
Sta
te G
en
era
l F
un
d
Bu
dg
et
Source: Legislative Fiscal Bureau
As programs like Medicaid consume a larger share of the state budget, K-12’s share declines (even as the state invests new money)
During the Great Recession, Revenue Limits Were Cut …
1993
-94
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12*
2012
-13
2013
-14
2014
-15
$(600)
$(500)
$(400)
$(300)
$(200)
$(100)
$-
$100
$200
$300
$400
Change in Per-Pupil Revenue Over Time
Pep-Pupil Aid Revenue Limit Change
Source: Department of Public Instruction. 2011-13 State Budget. http://pb.dpi.wi.gov/pb_11-13_budget 2013-15 State Budget. http://news.dpi.wi.gov/news_2013-15-state-budget-information
Which has Resulted in Significant Staff Reductions
Teachers Aides Administrators Support Staff
-2000
-1500
-1000
-500
0
500
-599
-355
26
215
-690
-153-43
-130
-1,676
-812
-175
-785
2009-10 2010-11 2011-12Wisconsin schools cut more than 3,000 educators during the Great Recession.
Source: Department of Public Instruction. 2011-13 State Budget. http://pb.dpi.wi.gov/pb_11-13_budget 2013-15 State Budget. http://news.dpi.wi.gov/news_2013-15-state-budget-information
2015-17 BUDGET PROPOSAL
As you all know …
Governor’s Proposal:1. Revenue Limit Adjustments: $0 in FY16 and FY17• No additional revenue authority, other than
exemptions (e.g., referendum)
2. General/Equalization Aid: $0 in FY16, $108 M in FY17
• State General Aid reduces Levy – not “new money”
2015-17 Budget Proposal – Revenue Limits & General Aid
RevenueLimits
State General Aid
Property Tax Levy
2015-17 Budget Proposal – Per Pupil Aid
Per Pupil Aid – Governor’s Proposal• $0 in Per Pupil Aid in FY16 – this is a reduction to
districts’ spending capacity of $150 per pupil• ~$165 in Per Pupil Aid in FY17
HOWEVER:– No longer a sum-sufficient appropriation (amount
per pupil = total appropriation divided by statewide membership)
– Provided on a one-time basis in FY17
State Support for Public Schools
Source: Department of Public Instruction. 2011-13 State Budget. http://pb.dpi.wi.gov/pb_11-13_budget 2013-15 State Budget. http://news.dpi.wi.gov/news_2013-15-state-budget-information
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
-$600.00
-$500.00
-$400.00
-$300.00
-$200.00
-$100.00
$0.00
$100.00
$200.00
$300.00
$400.00
Change in Per-Pupil Revenue Over Time
Rev Limit Change Per-Pupil Aid
2015-17 Budget Proposal – Tax Credits
Governor’s Proposal – School Levy Tax CreditIncreases allocation by $105.6 million in FY16 & FY17(e.g., for tax bills going out in Dec 2015 & Dec 2016)
• The SLTC reduces property taxes – it is not additional revenue beyond a school district’s revenue limit
• The SLTC is distributed based on a municipalities share of the statewide school levy – not equalizing
2015-17 Budget Proposal – Categorical Aids
The Governor’s Proposal includes the following increases requested by the State Superintendent:• Sparsity Aid:
– Eliminate FRPL eligibility criterion & fully fund at $300 per member (currently $236 for districts under 650 enrollment with less than 10 students per sq. mile)
• Transportation Aid– Raised reimbursement rate for 12+ miles
category from $275 to $300• High Cost Transportation Aid
– Increase funding to provide reimbursements at ~50% of costs above 150% of statewide average
2015-17 Budget Proposal – Categorical Aids cont.
• Governor’s Proposal – freezes special education, Bilingual, SAGE, school breakfast, Gifted & Talented, STEM grants
The Governor’s Proposal eliminates funding for a few existing categorical aid programs:
– Career & Technical Education Incentive Grants (transferred $3 million annually to DWD, Wisconsin Fast Forward Program)
– Environmental Education Grants
IMPACT ON RURAL SCHOOLS
• In rural school districts, the lack of economies of scale, sparsity and fixed costs (insurance, utilities) prevents districts from proportionately reducing costs to match flat or declining revenue limits
• Most rural districts have had no choice but to either cut deeply into student opportunities (foreign language, AP classes, career & technical education, art, music, library, guidance, reading specialist, etc.) or pass a referendum to exceed the revenue limit
Challenges for Rural Schools
• Recent years have taken a toll on administrative services, support services, building maintenance and technology infrastructure in rural districts
• Teacher/administrator recruitment and retention is an emerging issue for rural schools
– Increased part-time positions leads to greater turnover
– Since 2010, there has been a significant decrease in under-graduates enrolled in teacher training programs
– 85% of education graduates in 2009 planned to teach until retirement compared to 39% of education graduates in 2013
– Salary disparity between rural and non-rural school districts is significantly increasing
Challenges for Rural Schools
• High transportation costs in rural districts diverts money from classroom instruction
– 75 rural districts with less than 3.6 students per square mile exceeds the average transportation costs for all remaining districts by 50% or $225,000 for a district of 750 students
• 200 school districts have fewer than 8 students per square mile, 100 less than 4 students per square mile and 36 less than 2 students per square mile
Challenges for Rural Schools
• Sparsity and geography results in many rural school districts spending more than $800 per student in transportation costs
• State transportation aids (including new $) cover less than 10% of the total costs
• As a result, rural school districts have less revenue per student to put into the classroom
Challenges for Rural Schools
• Less support for special education from both the state and federal government has reduced the resources available for regular school programs for all students
• Lack of adequate bandwidth prevents many rural communities from growing and attracting business and rural schools from taking advantage of effective application of technology
– More than 30% of the state’s rural population does not receive high-speed Internet service
– Technology infrastructure in most rural schools needs to be updated
Challenges for Rural Schools
• There have been over 1,000 referenda to exceed the revenue limit over the past 15 years– Some are to fund additional costs of operating new schools, technology
expansion or facility upgrades
– Most are to maintain existing programs
• Over 80% of referenda to exceed revenue limits to maintain existing programs are held in rural school districts
• Many rural school districts have become referendum dependent in order to exist
Challenges for Rural Schools
HOW CAN WE JUSTIFY STATEWIDE CUTS TO K-12 AND EXPANDING
PRIVATE SCHOOL VOUCHERS AND INDEPENDENT CHARTERS AT THE
FURTHER EXPENSE OF RURAL SCHOOLS AND COMMUNITIES???
The Key Question
