The Future of Rural Schools

A Presentation By Senator Kathleen Vinehout

Education choices are about our future

Increasing Child PovertyStudents Receiving Free and Reduced Lunch

04 05 06 07 08 09 10 11 1220%

25%

30%

35%

40%

45%

Fiscal Year End

% of WI Public School Students

Source: DPI, April 2013

State tax revenue is growing

Source: Comparative Summary of Governor and JFC Budget Recommendations, table 7, Legislative Fiscal Bureau, June 2013; Legislative Fiscal Bureau Memo, March 2013; Legislative Fiscal Bureau letter to JFC Co-Chairs, May 2013

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13* 14* 15*0

2

4

6

8

10

12

14

16

Fiscal Year Ends

Tax Revenue($ in billions)

*Estimated values

Where does money come from?

Sources: State of WI Budget in Brief, February 2013; Preliminary 2012-13 General Fund Tax Collections August 2013

General Purpose Revenue

45%

Federal Revenue29%

Program Revenue15%

Segregated Revenue11% General

Fund

All Funds

Where does money go?

Health Care30%

Local Public Schools18%University of WI System*

17%

Transportation*9%

Local Government7%

Corrections4%

All Other Programs15%

All Funds

*excludes bonding**Excludes property tax relief

Sources: State of WI Budget in Brief, February 2013; Summary of Governor’s Budget Recommendations, Legislative Fiscal Bureau, March 2013 State Debt Related Memo, Legislative Fiscal Bureau, June 2013; Summary of General Fund Appropriations by Agency, August 2013.

Budgets are about Choices

2001-03 2003-05 2005-07 2007-09 2009-11 2011-13 2013-150

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

Health

Education

UW System

Transporta-tion

Shared Rev-enue and Tax Relief

Corrections

All Other Programs

Biennial Budget

$ in billions

Total Budgeted Spending: Health grows rapidly as education spending slows

Spending plan is up sharplyincreases by $10b over 4 budgets

2007-2009

2009-2011

2011-2013

2013-2015

54

56

58

60

62

64

66

68

70

St. Bud...

Budget Years

Mon

ey in

billion

s

Sources: Comparative Summary of Governor and JFC Budget Recommendations, table 1, Legislative Fiscal Bureau, June 2013; Comparative Summary of Budget Recommendations — 2011 Act 32 (and 2011 Acts 10, 13, and 27) table 1, Legislative Fiscal Bureau, 2011; Comparative Summary of Budget Recommendations (2009 Act 28) table 1, Legislative Fiscal Bureau, 2009; Summary of Budget Provisions 2007 WI Act 20 table 1, Legislative Fiscal Bureau, 2007.

Several Big Increases in General Fund SpendingTax Rate Changes = $647.9 million

New Ec. Dvpt tax credits = $75 million

Medical Assistance = $850 million

Marketing “In Wisconsin”=$10.9m

80 New Vehicles $1.7 million

DNA collection at arrest = $11.6 m (inc $250 surcharge at arrest)

New Private School Tuition Tax Break = $30 m

New Money in Private School Vouchers = $78 m

Spending Increases, but so does Debt

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 150

2000000000

4000000000

6000000000

8000000000

10000000000

12000000000

14000000000

16000000000

Calendar Year

$ in Billions

Republican governor

Democratic Governor

Source: Legislative Audit Bureau Memo, Feb. 2013 & Legislative Fiscal Bureau Memo, March 2013; Legislative Fiscal Bureau Memo June 2013.

New Borrowing increases $2 b

New or expanded state buildings $233m

Corrections expansion or improve $34m

National Guard & Military Affairs $70m

DNR HQ & park improvements $23m

Transportation $998m

World Dairy Expo $9m

Maritime Museum $5m

Family Justice Ctr, MKE $10m

UW buildings & improvements $703m

Not paying debt bills is Kicking the Can Down the Road

Debt Restructured by Legislative Session

2001-03 2003-05 2005-07 2007-09 2009-11 2011-13McCallum Doyle Doyle Doyle Doyle Walker

$0

$100

$200

$300

$400

$500

$600

$ in Millions

Source: Legislative Fiscal Bureau Memo, May 2012

WI Education Policy

Has become a tangle

of different types of schools

all paid for with

public dollars.

Big Increase in Private School & Independent Charter School Spending

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 150

50000000

100000000

150000000

200000000

250000000

300000000

350000000

Fiscal Year End

$ in Millions

Source: DPI, April 2013

What are charters, vouchers & ‘choice’?

Most don’t know

Changes in Education Budget• Expand private school voucher program statewide

with a cap of 500 students in the first year & 1,000 students in the 2nd yr.

• 38.4% of private school dollars come from public school district; rest from state

• $78 million = New Tax $$ for Private Vouchers• Raise K-8 private school payments to $7,210 (10%)• Raise private high school payments to $7,856 (22%)• Increase in dollars to public schools (yr 1=1.3%)

• Increase revenue limit to schools by $75 per pupil• Provide a one-time aid increase of $75 per pupil• Superintendents say they need $230 per student

just to cover cost increases

Public School Spending Without private school vouchers and independent charter

Schools

03 04 05 06 07 08 09 10 11 12 134600000000

4800000000

5000000000

5200000000

5400000000

5600000000

5800000000

6000000000

6200000000

Fiscal Year End

$ in Billions

Source: DPI, April 2013

It’s time to reconsider the path we are headed

Senator Vinehout’s

Alternative Budget 2013-2015

Choices & Priorities

Fund Public Schools including items requested by Dept of Public Instruction

Governor Walker did not fund: Fair Funding for Schools

High Cost Special Education

Improving Graduation Rates

Increase for Rural Schools (Sparsity)

Bilingual-Bicultural Education

Career & Technical Education Grants

Science, Technology, Engineering and Math Education (STEM)

SAGE increases

Additional Library Assistance

High Cost Transportation

Fix Fiscal ProblemsEliminate Tax Rate Change &

Create 2% Reserve Fund of $623 million

Get rid of Structure Deficit

Cut almost in half Generally Accepted Accounting Principles (GAAP) gap

Remove Transportation Fund raid on General Fund

Fix deficit in Children & Families programs (TANF)

Ended the budget years with $300 million surplus!

What’s In? What’s Out?

Set aside over $600 m in reserves

Expand BadgerCare

Change School Funding

Restore ag, conservation, UW & courts cuts

Invest in Mental Health, Drug court & addiction recovery

Return $ to nursing homes

Expand Family Care

All policy unrelated to $$$

Private School tuition tax break

80 new vehicles

Expanded private school vouchers

Sale of state assets in no-bid contracts

New & increased tax loopholes

Changes in income tax rates

We Will Move Forward

When we realize the ‘status quo’ is no longer an option.

When we arm ourselves with the facts about our local schools.

When we begin a community discussion about what we want for our schools.

When we raise our voices together.

What do we want for Wisconsin’s future?

The Future of Rural Schools

For Further Information Contact:

Senator Kathleen Vinehout

State Capitol P.O. Box 7882

Madison, Wisconsin 53707-7882

Sen.vinehout@legis.wisconsin.gov

www.legis.wi.gov/senate/sen31/news

877-763-6636 (toll free)