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School districts have labored under state-imposed revenue caps since 1993. The caps essentially froze spending at 1992 levels. In 1995, the Legislature voted to fund 2/3 of the costs of K-12 education. It is critical to realize the state pays an average of 2/3 of the total cost. For Madison, due to higher than average property values, the state actually pays only one-fourth of the district's total budget ($266 million), with the remainder of the costs borne by local property tax payers.
Districts are allowed annual per pupil increases, however, the increases have not kept pace with inflation. The Governor's budget freezes the allowable increase at $220.29 per student. This allows about a 2.4 percent increase in the total MMSD budget - substantially less than the state-imposed Qualified Economic Offer (QEO), that lets school boards increase teacher salaries/benefits by 3.8% without the local union option of requesting a state arbitrator to resolve contract differences. Personnel costs account for about 85 percent of the district's total budget.
Many budgetary factors are outside the control of the district - rising utility/fuel costs, declining enrollment, legal expenses, mandated special education and English as a Second Language programs/services. To ensure schools have modern classrooms, preparing students for post secondary employment, technology is now an essential cost of doing business.
The district supports revenue limit exemptions for:
The district also believes that revenue limit increases must match the resources needed to comply with the QEO. Additionally, MMSD supports allowing districts to levy 1% of its total budget without going to referendum.
The state needs to return control of schools to local school boards. In too many instances, the state imposes mandates (school start date, staff compensation) that are better left to locally elected school board members.