The Republican-controlled state Assembly passed a budget that differs dramatically in many key areas from the one passed in late June by the Senate, controlled by Democrats. With a wide chasm separating the two budgets, it will take all the partisans can muster to reach reconciliation and come up with a budget that can pass both houses. While Governor Jim Doyle has called for a budget by August 1, Capitol observers predict the process will languish into the fall.

A conference committee comprised of four Democrats and four Republicans will take up the item-by-item list of points of contention. Conferees must agree to the compromise language and sign off on the final document. The Conference Committee report is then sent to both houses of the Legislature for approval. The document cannot be amended. The final step in the process is the Governor's review of the budget, and the use of the most expansive item veto powers of any chief executive in the nation.

The stated goal of Assembly Republicans was to pass a budget with no new taxes, including a $1.25 increase in the cigarette tax to pay for health care expansion for those without insurance. While the GOP met their objective, analysis shows that, perhaps, there have been unintended consequences.

The non-partisan Legislative Fiscal Bureau reported recently that the Assembly budget puts the state into an $877 million "structural deficit" entering the 2009-11 biennium — higher than the Governor's and Senate's budgets. Essentially, this means the state will be $877 million short in order to meet continuing financial commitments.

The Assembly budget cuts school aids by $85.4 million, potentially resulting in higher property taxes across the state. The Assembly budget also leaves the state with no ending balance "cushion" of revenue reserves — hardly an illustration of fiscal austerity.

The following takes specific K-12 budget provisions and details the Governor's budget introduced in February, and the Senate's and Assembly's proposals. Call your legislators and the Conference Committee members to advocate for resources to Madison Schools.

Issue	Governor	Senate	Assembly
SAGE	Increase per pupil allocation by $250	Increase per pupil allocation by $250	Under-funds SAGE by $6 million (est. loss of $716,572 to MMSD)
Revenue Limits	Provides per pupil inflation-adjusted increases of $264 in 07-08, and $270 in 08-09	Provides per pupil inflation-adjusted increases of $264 in 07-08, and $270 in 08-09	Allows only a $200 per pupil increase in both years, unless a school district offers its teachers a health package that is equal to or less than state employee costs (est. loss of nearly $5 million for MMSD for 2007-09)
School safety	Allow a school district to expend $25,000 per 500 high school students outside the revenue caps to put officers into schools, with a matching amount from the local municipality	Allow school districts to spend up to $100 per pupil outside the revenue limits for school security personnel/equipment	Provide $5 million annually for a grant program that would reimburse districts for costs allowable under the federal Safe and Drug Free Schools and Communities Act.
Bilingual-Bicultural Aid	Increase aid by $3 million	Increase aid by $3 million	Eliminates increase (loss of $52,000 to MMSD)
Special Education	Increases aid by $53.6 million	Increases aid by $53.6 million	Increases aid to $53.6 million, but creates a $3 million annual “autism scholarship” program that takes resources from the current appropriation, resulting in fewer dollars statewide
School breakfast	Increases reimbursement to districts from 0.10 to 0.15	Increases reimbursement to districts from 0.10 to 0.15	Eliminates increase (loss of $12,500 to MMSD)
Milwaukee voucher program	Maintains current law	Maintains current law	Expands voucher program to all of Milwaukee and Racine County; allows annual enrollment increase
Integration aid (Chapter 220)	Maintains current law	Maintains current law	Phases out program ($500,000 loss to MMSD)