After nearly four months of partisan sniping, political posturing and legislative leaders honing their 2008 election "talking points," the 2007-09 biennial budget was passed by the Legislature and signed into law by Governor Jim Doyle.

The state budget impasse, which lasted 115 days from the July 1 statutory deadline, was the second longest in state history. The final vote was 18-15 in the Senate with all of the majority party Democrats supporting the bill; in the Assembly the vote was 60-39, with only 23 of the majority party Republicans supporting the bill along with 37 Democrats.

Less than 24 hours after the Senate passed the bill, Democrats ousted Majority Leader Judy Robson (D-Beloit) and named Joint Finance committee (JFC) co-chair Russ Decker (D-Schofield) as the Senate's new leader. Decker will name the new Senate JFC co-chair, and possibly change other committee assignments, in his new capacity as the Senate leader.

Partisans fought fiercely over issues that are sure to be keys to the 2008 elections. The GOP was steadfast in its opposition to any new taxes, including the cigarette tax which has widespread support in public opinion surveys. The Republicans' message was countered by the Democrats' focus on the need for Wisconsin to extend health care coverage to all state residents via their Healthy Wisconsin initiative. In the final budget compromise, the broad health care expansion was deleted and the cigarette tax increased by $1.

The final budget's K-12 provisions differed in only a few areas from Doyle's original proposal. Doyle and the Democrats supported elimination of the Qualified Economic Offer (QEO), which allows that if a school board offers a total package compensation increase of at least 3.8%, the union cannot file for arbitration to resolved contractual differences. The QEO language was dropped from the final package.

A disappointment for school officials was the elimination of the Senate Democrats' proposal to allow school districts to spend up to $100 per pupil outside the revenue limits for school security staff and equipment. This item could have provided nearly $2.5 million for district's security needs without jeopardizing existing programs and services.

The budget also failed to increase state resources for state and federally mandated bilingual instruction. Doyle's $3 million increase (which would have maintained the state's 12% reimbursement to school districts) was dropped from the final package. Madison would have received an estimated $52,000 increase.

Key K-12 provisions for MMSD include:

• estimated $2.75M special education (SPED) increase over the biennium (even w/$53.6M statewide SPED increase, the estimated SPED reimbursement in 08-09 will be 29%, compared to a 45% state reimbursement when revenue limits started in 93-94);
• estimated $716,500 for SAGE (07-08), which was part of an agreed upon deal between Doyle and GOP leadership made before the 2006 elections — increase SAGE money as a tit-for-tat to increase Milwaukee voucher school enrollments;
• a five cent state reimbursement increase for school breakfast ($31,250, 07-08).

A "non-fiscal" issue in the budget allows up to 25% of a district's Common School Fund (library aids) resources to be spent on computers and software used exclusively for school libraries. DPI's current interpretation of statute did not allow this; the new change explicitly allows it. MMSD gets about $800,000 in Common School Funds, so about $200,000 could be used for school library technology.

After talking about the Wisconsin Covenant for over two years, Gov. Doyle received agreement from GOP leaders during budget discussions to formally create the office within state government. The Wisconsin Covenant seeks to guarantee a spot in a Wisconsin postsecondary institution for any student who signs a pledge in 8th grade agreeing to: maintain a "B" average in high school, take the necessary classes in high school to go to college, and be a good citizen.