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Number 7 - August 31, 2001
Gov. Scott McCallum signed the $47 billion 2001-03 biennial budget into law, making the K-3 class size reduction SAGE (Student Achievement Guarantee in Education) program permanent and keeping 4-year old kindergarten funding at current law levels. McCallum vetoed language that would have allowed districts modest allowance to exceed state revenue limits, saying the Legislature appropriated inadequate resources.
Most problematic for Madison is the budget's failure to include any additional resources for state mandated special education programs and services. The budget freezes the special education (SPED) appropriation at $315 million. The Department of Public Instruction (DPI) estimates that the SPED reimbursement to school districts for the 2001-02 school year will fall to 33.6% from the current 35.7%.
Madison highlighted the need for state assistance with low-incidence/high cost special education students. Information released to the Legislature indicated that Madison's costs for 191students was nearly $7.6 million (student expenses over $25,000). Gov. Tommy Thompson's Blue Ribbon Commission on State-Local Partnerships (Kettl Commission) endorsed full funding by the state for low-incidence/high cost SPED students.
A description of education-related vetoes and budget issues follows.
McCallum vetoed language that would have allowed school districts to exceed state-imposed revenue limits with a 2/3 vote of the school board. The distribution formula was based on local property values and several other factors. It was estimated that Madison would be eligible for less than $500,000.
In his veto message McCallum said, "If school boards representing the 17 districts receiving the largest allowable increases make full use of their flexibility, the $15 million provided in 2001-02 to cover the state's two-thirds share will be exceeded."
The budget provides $95 million for the next two years to fully fund the K-3 class size reduction (15:1) program. The SAGE program was slated to end on June 30, 2001 and the budget removes the sunset language from statutes, making the program permanent. SAGE began during the 1996-97 school year. In each of the last three budgets, advocates had to fight for sufficient state funds to allow the program to continue.
McCallum vetoed language delaying implementation of the test, ensuring it will begin with the 2002-03 school year. McCallum's budget originally allowed $9.3 million for test development and implementation, but that was cut by the Legislature. The DPI estimates it still needs $4.8 million for test development. In his veto message, McCallum said if testing money from the federal government for grades 3-8 testing materializes, the state will use those resources for testing in elementary grades. If federal funds are unavailable, he will propose separate legislation to fund the HS test.
The governor vetoed language that would have reduced state resources for four-year old kindergarten to put funding levels back to current law. Madison has spent several months examining the prospects for 4-year old kindergarten and plans to engage the community on the issue this fall.
The most significant deviation from the status quo is that, beginning with the 2002-03 school year, districts will have to start school after September 1. Districts will be able to appeal to the state superintendent if an earlier start date due to "extraordinary reasons" is necessary. It is anticipated that districts that already have signed collective bargaining agreements through June 30, 2003, such as Madison, will request a waiver from the new law.
The governor vetoed budget language that would have authorized the research branch of the Legislature, the non-partisan Legislative Council, to conduct studies on the school funding formula and special education. Legislative Council studies include both legislative and public members. Also vetoed was a UW special education study of students with dyslexia and Irlen Syndrome, a reading disability. McCallum's veto message said the Legislature already has the authority to request such studies, and that a statutory provision is unnecessary.
The governor rejected modifications to the QEO law. In his veto message he said, "I am vetoing these sections in their entirety because their potential economic and policy impact has not received any objective review or analysis. I would support efforts to provide for a comprehensive and objective study of Wisconsin qualified economic offer law."
McCallum vetoed language: disallowing use of a calculator on the state's 4th grade Knowledge and Concepts test; providing $300,000 for after-school care programs; delaying the $115 million state aid payment to districts to July of 2003; and, allowing private schools to apply for TEACH technology grants.
The budget retains: the state's commitment to fund 2/3 of the entire cost of K-12 education (Madison receives about 25% of its budget from the state); the 40% state reimbursement for summer school; and, the annual inflationary adjustment allowed under revenue limits.