State Superintendent Evers State Superintendent Evers Fair Funding for our Future Fair Funding for our Future

PlanPlan

For more details visit: Fairfundingforourfuture.org

• Revenue limits have been around for 21 years with no per pupil adjustment currently built in after the 2014-15 school year.

• There are 60 school districts that receive minimal state aid, 20 of which receive no state equalized aid whatsoever.

• Our system only uses property to measure “wealth” so districts with high property values fare poorly, regardless of their community’s ability to pay.

• Changes beyond a school district’s control result in schools and kids seeing significant reductions in their state aid from year to year.

• Our school boards tax at higher rates than technically necessary.

• We no longer have a predictable system of funding that recognizes school district’s needs or one they can count on.

Why do we need to change our school finance system?

Category % of State Budget1. K-12 General and Categorical School Aids 33.1%2. Medical Assistance 15.1%3. University of Wisconsin 7.3%4. State Correctional Operations 6.7%5. Shared Revenues 5.9%6. School Levy/First Dollar Tax Credits 5.8%7. State Debt Obligation Bonds 2.6%8. Local Community/Juvenile Correctional Services 2.0%9. State Judicial/Legal Services 1.7%10. Choice and Charter School Programs 1.7%All Other Programs 18.1%

Source: Legislative Fiscal Bureau (2013-15 Biennial Budget Summary-Table 11)

Top Ten State General Fund Programs and % Share of State’s 2013-15 General Fund Budget

The state’s commitment to school aidshas declined over the last decade

School District Declining Enrollment InformationRevenue Limit (Three Year Average) Definition

Fiscal Year

# of Declining

Enrollment Districts

Percentage of All

School Districts

Statewide Membership

Annual Statewide % Membership

Change

Cumulative Statewide % Membership

Change

1997-98 127 29.8% 845,5921998-99 164 38.5% 853,851 1.0% 1.0%1999-00 186 43.7% 856,324 0.3% 1.3%2000-01 192 45.1% 859,285 0.3% 1.6%2001-02 214 50.2% 861,195 0.2% 1.8%2002-03 230 54.0% 862,944 0.2% 2.1%2003-04 247 58.0% 863,703 0.1% 2.1%2004-05 263 61.7% 862,929 -0.1% 2.1%2005-06 265 62.2% 861,559 -0.2% 1.9%2006-07 248 58.4% 860,230 -0.2% 1.7%2007-08 254 59.6% 857,027 -0.4% 1.4%2008-09 258 60.6% 855,203 -0.2% 1.1%2009-10 277 65.2% 851,882 -0.4% 0.7%2010-11 266 62.7% 849,567 -0.3% 0.5%2011-12 270 63.7% 847,514 -0.2% 0.2%2012-13 267 63.0% 846,490 -0.1% 0.1%

Fair Funding Plan

We can protect students, provide additional resources, and enact school finance reform while holding the line on property taxes. This plan is a realistic and ready first step, providing solutions that are good policy and have received bipartisan support.

The Plan:• Makes our school finance system more fair, sustainable, and

transparent

• Provides additional revenue limit authority to all school districts

• Establishes predictable growth in state funding by restoring the state’s two-thirds funding commitment

• Guarantees state funding for every student

• Accounts for family income and poverty

• Strengthens rural schools and schools with declining enrollments

• Directs all state aid right to school boards

Fair Funding Proposal • Increased Revenue Limit Authority: Provided an allowable

annual increase of $225 in 2013-14 and $230 per pupil in 2014-15 and indexed such adjustments to CPI thereafter.

• Provided Additional State Support: Increased state general aid by 3.75% in 2013-14 and by 4.50% in 2014-15 to provide additional state support for school districts and property tax relief.

• Predictability/Sustainability: Created a pathway to restoring the state’s two-thirds funding commitment by 2017 by making public school funding a “sum-sufficient” appropriation once again, similar to state funding for private choice and independent charter schools.

2013-15 Fair Funding Plan Overview

• Guaranteed Funding: Established a minimum level of state aid ($3,000) behind every student, regardless of where they live.

• Ability to Pay: Accounted for family income and “ability to pay” by including poverty as a factor (30%) in determining a district’s “wealth”.

• Protecting Students and Taxpayers: Increased state special adjustment aid from 85% to 90% to help declining enrollment districts.

• Transparency: Transferred the School Levy Tax Credit (SLTC)/First Dollar Credit into aid formula and paid all monies directly to school boards.

• Hold Harmless Funding: Ensured every district received the same amount of state support it would otherwise receive under current law.

2013-15 Fair Funding Plan Details

Sought additional support for the following existing categorical aid programs:• Special Education: Increase reimbursement from 26% to 28%

• High Cost Special Education: Increase reimbursement from 45% to 55%

• Bilingual-Bicultural Aid: Increase reimbursement from 8% to 12%

• SAGE: Fully-fund program at $2,250 per eligible student

• Sparsity: Fully-fund program at $300 per student in 130 eligible districts

• Breakfast: Increase reimbursement from 9 to 10 cents per breakfast

• Transportation: Increase reimbursement for distances over 12 miles. This item was approved into law in the 2013-15 biennial budget.

2013-15 Fair Funding Plan-Existing Categorical Aids

• Supplemental Bilingual-Bicultural Aid:Provided $100 per student to all school districts educating English Language Learner students, not just those required to have programs.

• High-Cost Transportation (Approved in 2013-15 Biennial Budget Bill):Targeted state resources to districts whose transportation costs exceed 150% of the state average.

• STEM Grants (Approved in 2013-15 Biennial Budget Bill):Proposed creating a statewide STEM initiative by awarding competitive grants to districts implementing STEM activities.

• College & Career Ready/Career and Technical Education:Promoted job creation efforts by providing $1,000 per student to districts graduating students with a high-need industry certification.

2013-15 Fair Funding Plan-New Categorical Aids

• Accountability:Supported the best practices of high-performing schools and invest in reading and math coaches in lower-performing schools.

• Graduation: Increased graduation rates by targeting grants to districts with persistent graduation and/or dropout issues.

• Educator Effectiveness (Approved in 2013-15 Biennial Budget Bill):Provided $80 per educator to support new evaluation systems per state law.

2013-15 Fair Funding Plan-New Categorical Aids

2013-15 Fair Funding Plan Impact

• All districts would have seen increased (95%) or same level of “state support”.

• Included both local property wealth & family income in our finance system.

• Ensured all “state support” would be paid directly to school boards.

• Would have held net property taxes steady and decreased gross tax rates by nearly two mills per $1,000 in property value on average.

• Would have created a more fair and transparent school funding system designed to make a difference for kids throughout Wisconsin and provide them with a greater opportunity to graduate ready for further education and the workforce.