Impact of Joint Finance Committee's K-12 allowable revenue limit increase

School districts in Wisconsin are allowed an annual increase in calculating the district's revenue limit resources. The increase is tied to enrollment and the annual Consumer Price Index. The JFC's dramatic cut to the allowable revenue limit increase lets districts increase the per pupil expenditure by about 1.4%. According to the U.S. Department of Labor's Web site, inflation for the period of April 2004-April 2005 was 3.5 percent - with energy costs for the same period running over 17 percent.

State law requires that districts issue staff layoff notices in the spring. The GOP proposal means the district would have to pay unemployment compensation for personnel that would have to be laid off this fall. Under current law, the district has already cut $8.6 million for the 05-06 school year in order to comply with state-imposed revenue caps - the JFC budget would require an additional $3.1 million cut before the 05-06 levy is certified in October.

The district estimates that under current law, the "revenue cap gap" (the difference between what the revenue cap allows a district to spend versus the resources necessary to continue a "same services budget") for 06-07 will be $7.5 million. The GOP proposal providing only a $100 per pupil revenue limit increase in 06-07 will require deeper cuts. Since the inception of revenue limits in 1993, the district has cut over $46.3 million and eliminated over 540 positions.

MMSD program and service costs

61 full-time teachers ($3.1 million - average of $50,700 per FTE)
all MMSD social workers and psychologists ($3.1 million)
48.8 custodians ($3.1 million)
all K-5 transportation expenses ($2.1 million)
entire Board of Education amount dedicated for maintenance ($3.1 million)
all district technology services ($2.5 million)
all building level instructional supplies, materials and equipment ($3.1 million)
all HS athletics ($1.9 million)
special education transportation ($3.5 million)
state SAGE grants ($5.3 million)

For more information contact, Joe Quick, Legislative Liaison, 663-1902.

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