2003-05 Biennial Budget Issues

With the state confronted by a $3.2 billion deficit, education advocates realize that fiscal sacrifice from all quarters must be part of the solution. However, backing off the 2/3 funding commitment coupled with the continuation of revenue limits, puts schools in a difficult situation.

In order to comply with revenue limits, the District has cut almost $25 million and eliminated nearly 250 positions since 1993 (2002-03 budget - $7.25 million cut, over 80 positions). Gov. Doyle's budget will still require an estimated $9.3 million in cuts to comply with revenue limits. (Revenue limits allow the District to increase its total budget by 2.7%, but personnel costs are 87% of the District's budget - and the QEO allows for a minimum 3.8% increase to the bulk of the total budget.)

If school aids are frozen at 2002-03 levels, the District will have to cut an estimated $15-18 million (depending on labor agreements for 2003-05 contracts).

School Finance

Maintain allowable revenue limit increase ($233.53 per student)
Maintain budget provision to transfer $100 million of Transportation Fund resources to general school aids (statewide school districts spend $300 million on transportation; MMSD budgeted $7.4 million for 2002-03)
Maintain current level of categorical aids
Maintain current reimbursement to school districts for 4-year old kindergarten and summer school
Restore TEACH WI block grant. (The governor's elimination of the TEACH WI grant removes $533,000 from the District's technology budget for routine computer maintenance and upgrades.)
Changes to the QEO and revenue limit laws should not be made in isolation, but as part of a comprehensive overhaul of school finance law through the Gov.'s Task Force on Education Financing

Mandate Relief

Given the budget crisis faced by Wisconsin's school districts, MMSD supports an easing of legislative mandates with fiscal implications. The package should provide local flexibility for: transporting private school students when the public schools are not in session, the 180-day calendar, mailing the annual school performance report, streamlining the DPI waiver of rules/law statute (118.38), youth options, and the SAGE program requirements. This list is not all-inclusive. There may be other areas where local districts identify the need for mandate relief.