Transcript Wisconsin Farmer’s Union Convention January 24, 2015 Jerry Fiene, WiRSA Executive Director [email protected] Strong Schools, Strong Communities www.wirsa.org.

Wisconsin
Farmer’s Union
Convention
January 24, 2015
Jerry Fiene, WiRSA Executive Director
[email protected]
Strong Schools, Strong Communities
www.wirsa.org
Wisconsin Rural Schools
Alliance (WiRSA)
Established 2010
Unique Organization
• Only group to solely represent RURAL INTERESTS
• Only group to have all components of public education
sitting down together to make decisions
o
o
o
o
o
Board members
Administrators
Teachers
CESAs
Post-secondary
• Only group where the singular focus is equal
opportunities for rural children
WiRSA Purpose
• To work collaboratively to solve issues pertinent to rural
schools and communities
• To build a clearinghouse of research and educational
best practices for rural schools
• To advocate for rural schools and communities at the
local, state and federal level
• To focus on children first
WiRSA Membership &
Accomplishments
• Current membership
o
o
o
o
o
120 school districts
10 CESAs
11 institutions of higher education
15 associate members
19 individuals
• Major accomplishments
o Established positive working relationship with legislators, DPI, other
education-related and rural-focused organizations
o Strong communication system built around website, electronic
newsletter, member mail lists
o Building a repository of rural best practice
o Significant input and influence on the budget and legislative processes
Wisconsin
• Out of 425 school districts in Wisconsin,
approximately 2/3 are rural
• Rural districts cover an average of 170 square miles,
which is 50% more than non-rural districts
• Rural districts have an average of 650 students or
less than 5 students per square mile
o 36 districts have less than 2 students per square mile
Wisconsin, cont.
• 96% of districts with less than 1,000 students are rural
• Nearly all rural school districts are declining in
enrollment
o A 7% average decline in enrollment over 10 years for rural school districts
compares to an average of 3% decline in non-rural districts
o Rural districts’ revenues rose 26% in last 10 years compared to 39% for nonrural districts
• Rural school districts are dramatically increasing in
poverty
Poverty is Growing in WI…
Change in Free & Reduced Lunch (2001-2012)
Wisconsin
FRL Rate
Doubles
2001: 21%
2012: 43%
In many rural
districts, more
than half the
students are
eligible for
free-andreduced lunch.
Source: Wisconsin Department of
Public Instruction. School Finance
Maps.
http://dpi.wi.gov/sfs/maps.html
School Funding Basics (Simplified)
Sources of Revenue:
• State Equalization Aid (tied to local property values)
& local property taxes up to the district’s revenue
limit
o Comprises 85+% of total revenue
• State Categorical Aids (Transportation, Sparsity,
Special Education, SAGE, etc.)
• Federal Categorical Aids (Title I, IDEA (Special Ed),
Technology, etc.)
• Local dues & fees
• Debt Service & Community Service (if applicable)
What is the Revenue Limit & How
is it Determined
• Revenue limits implemented in 1993-94
• Revenue limits were designed to restrict the amount
of revenue a school district can raise through local
property taxes and general school aids annually on
a per-pupil basis
• Very few and limited exemptions to revenue limit
REVENUE LIMIT – GENERAL STATE AID = PROPERTY TAX LEVY
(Equalization, High Poverty)
What is the Revenue Limit &
How is it Determined, cont.
• Revenue limit is calculated based on prior year per pupil
base limit plus any allowable (designated in biennial
budget) increases to the base multiplied by the district’s
three-year rolling pupil membership average
• In recent years, the allowable increase has been very
minimal and in the 2011-13 biennial budget, it was a
decrease of $550 per student
• Declining enrollments further decrease the revenue limit
over time
• In 2012-13, 80% of the school districts had a revenue limit
of $9,050 to $10,900 per student
Referenda to Exceed
Revenue Limits
• Districts can raise additional revenue through property
taxes by going to referendum
o Referendum to issue debt (building or remodeling)
o Referendum to exceed the revenue limit
• Recurring – additional revenue limit authority is
permanently added to the base
• Non-recurring – additional revenue limit authority is
temporarily added to district’s base for a specified number
of years
Referenda to Exceed
Revenue Limits, cont.
• There have been nearly 1,000 referenda to exceed the
revenue limit over the past 15 years
o Some are to fund additional costs of operating new schools
o Most are to maintain existing programs
• Over 80% of referenda to exceed revenue limits to
maintain existing programs are held in rural school
districts
• Many rural school districts are becoming referendum
dependent in order to exist
What Makes Rural School
Districts Great
• Above average in student achievement
• Significantly above average in graduation rates
• Higher participation in extra-curricular activities
which positively influence attendance and
achievement
• School district functions much more like a
community instead of a bureaucracy
What Makes Rural School
Districts Great, cont.
• Typically, the school district is one of the largest
employers in the community which contributes
positively to the local economy
• Greater parental involvement
• School is the social hub for the community
What are the Issues/Challenges
Facing Rural Schools
• Continuous decline in enrollment
o In 10 years, 123 districts declined at least 10%, 51 declined more than 20%
and 5 declined more than 35%
• Declining enrollment combined with recent
reductions or minimal increases to the allowable per
pupil expenditure in the revenue limit formula has
resulted in a decreasing revenue limit for many rural
districts
o 44 rural districts had a lower revenue limit in 2013 than they had in 2003
What are the Issues/Challenges
Facing Rural Schools, cont.
• In rural school districts, the lack of economies of
scale, sparsity and fixed costs (insurance, utilities)
prevents districts from proportionately reducing
costs to match flat or declining revenue limits
• Most rural districts have had no choice but to either
cut deeply into student opportunities (foreign
language, AP classes, career & technical
education, art, music, library, guidance, reading
specialist, etc.) or pass a referendum to exceed the
revenue limit
What are the Issues/Challenges
Facing Rural Schools, cont.
• Recent years have taken a toll on administrative
services, support services, building maintenance and
technology infrastructure in rural districts
• Teacher/administrator recruitment and retention is an
emerging issue for rural schools
o Increased part-time positions leads to greater turnover
o Since 2010, there has been a significant decrease in undergraduates enrolled in teacher training programs
o 85% of education graduates in 2009 planned to teach until
retirement compared to 39% of education graduates in 2013
o Salary disparity between rural and non-rural school districts is
significantly increasing
What are the Issues/Challenges
Facing Rural Schools, cont.
• High transportation costs in rural districts diverts
money from classroom instruction
o 75 rural districts with less than 3.6 students per square mile exceeds the
average transportation costs for all remaining districts by 50% or $225,000
for a district of 750 students
• 200 school districts have fewer than 8 students per
square mile, 100 less than 4 students per square mile
and 36 less than 2 students per square mile
What are the Issues/Challenges
Facing Rural Schools, cont.
• Sparsity and geography results in many rural school
districts spending more than $800 per student in
transportation costs
• State transportation aids cover less than 10% of the
total costs
• As a result, rural school districts have less revenue
per student to put into the classroom
What are the Issues/Challenges
Facing Rural Schools, cont.
• Reduced support for special education from both
the state and federal government has reduced the
resources available for regular school programs for
all students
• Lack of adequate bandwidth prevents many rural
communities from growing and attracting business
and rural schools from taking advantage of
effective application of technology
o 40% of the state’s rural population does not receive highspeed Internet service
o Technology infrastructure in most rural schools needs to be
updated
What Does the Future Hold
• Private school vouchers have been expanded (with
caps) statewide draining resources from public
education
• Proposals are being made to remove caps and
increase financial support for private school
vouchers – What will this mean for public school
support?
• Currently, 1.5% of every property owner’s school tax
dollar is being used to support independent charter
schools in Milwaukee (legislation will again be
proposed to expand independent charters
statewide)
What Does the Future Hold
• Without significant modifications to Wisconsin’s
School Finance System, more programs and student
opportunities will have to be eliminated in rural
public school districts
• Without significant modifications to Wisconsin’s
School Finance System, the future of many more
rural school districts will likely be tied to a
“Referendum to Exceed the Revenue Limit”
Most Kids Attend Public School
83%
Total Enrollment (2013-14)
Public Schools: 875,000
Private Schools: 120,000
Neighborhood
Public Schools
(830,000)
3%
3%
1%
1%
9%
Public Charter
Schools (29,300)
Public Virtual
Charters (7,000)
Public Independent
Charters (8,400)
Source: Department of Public Instruction. Public
School Enrollment Data
http://lbstat.dpi.wi.gov/lbstat_pubdata3
Private School Enrollment Data
http://lbstat.dpi.wi.gov/lbstat_privdata
Private School
(Private Pay/Tuition)
(93,500)
Private School
Vouchers
(26,500)
Charter Schools &
Independent (2r) Charters Schools
In 2013-14, Wisconsin had:
 242 charters* schools with
 47,600 students.
Charters are public schools
that are generally authorized
by the local school board.
However, Milwaukee and
Racine have independent
charter schools that are
created by:
• UW – Milwaukee (12)
• City of Milwaukee (10)
• UW – Parkside (1)
• Milwaukee Area Technical College
(0)
The 23 Independent (2r) charter
schools enroll 8,400 students, but are
funded differently.
Independent charter schools are 100%
state funded (no property tax), but
only receive $7,925 per-pupil ($8,075 in
14-15).
However, this state funding is created
by withholding ≈1.4% of every district’s
general aid and redirecting it to the
independent charters.
Local districts then can increase their
property taxes to make up the
difference – essentially raising property
taxes statewide.
* This includes instrumentality, non-instrumentality, independent and virtual charter schools.
Source: Department of Public Instruction. Charter Schools in Wisconsin. http://sms.dpi.wi.gov/sms_csindex
Voucher Programs Started Small,
But Have Grown Over Time
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
341
In 1998, the State
Supreme Court
ruled that religious
schools could
participate in the
voucher program.
In 1990-91, the Voucher Program cost
In 2014-15, the Voucher Program will cost:
≈ $734,000
≈ $212,000,000
Source: Department of Public Instruction. Private School Choice Programs - Facts & Figures. http://sms.dpi.wi.gov/choice_facts_statistics
Most Students in Voucher Schools
are Publicly-Funded
2013-14 % Voucher Enrollment in Choice Schools
(September Pupil Count)
100%
90%
80%
70%
60%
50%
Milwaukee PCP average:
Racine PCP average:
Wisconsin PCP average:
All PCP schools average:
40%
30%
20%
79%
44%
4%
64%
10%
0%
1
4
7
10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 106 109
MPCP
RPCP
WPCP
The % of voucher-funded students in participating schools
(particularly K-8 schools) tends to grow over time.
Source: Department of Public Instruction. Private School Choice Programs - Facts & Figures. http://sms.dpi.wi.gov/choice_facts_statistics
…And Most Statewide Voucher Students
Come From Private Schools
2014-15 Statewide Choice Program Applications:
120 51 11
4% 2% 0%
Sales
537
19%
3/4ths of the students were already
enrolled in private schools
Private
Public
No School
Homeschool
2115
75%
Out-of-State
Source: Department of Public Instruction. Private School Choice Programs - Facts & Figures. http://sms.dpi.wi.gov/choice_facts_statistics
Most Statewide Voucher Schools
are Located in Larger Communities
Appleton - 2
Madison - 1
Beloit & Janesville - 1
Manitowoc - 2
Bonduel - 1
Marshfield - 1
Chippewa Falls - 1
Menasha & Neenah - 1
Eau Claire & Altoona - 1
Oshkosh - 1
Fond du Lac - 2
Plymouth - 1
Green Bay & De Pere - 4
Stevens Point & Plover - 1
Kenosha - 2
Wausau & Rothschild - 1
LaCrosse & Onalaska - 1
Wisconsin Rapids - 2
A Voucher in Every
Backpack?
What would universal vouchers with public school
funding parity cost? Let’s do the math…
New Cost for Tuition-Paying Students
Number of Private Pay
Students
X
Public School
Revenue Limit
=
Marginal Cost for Universal
Vouchers
93,000
X
$10,000
=
$930,000,000
Increased Cost for Current Voucher Students (2013-14)
Grade
K-8
9-12
Public School
Revenue Limit
$10,000
$10,000
Voucher
Amount
$7,210
$7,856
Difference
X
$2,790
$2,144
Total
X
X
Voucher
Enrollment
23,616
5,184
28,800
=
Marginal Cost
=
=
$65,888,700
$11,114,500
$77,003,200
Total additional (marginal) cost for universal vouchers:
$ 1,007,003,200 ($1 billion)
Source: Department of Public Instruction. 2013-15 State Budget Information. http://news.dpi.wi.gov/news_2013-15-state-budget-information
Note: calculations are updated to determine marginal, rather than total program costs.
Speaker’s Task Force
on Rural Schools
• Established by Speaker Robin Voss in September
2013
• Eight rural Republican representatives and four rural
Democratic representatives appointed to Task
Force led by Rep. Rob Swearingen, Rhinelander
and Vice-Chair Rep. Fred Clark, Baraboo
• Conducted 12 rural school site visits and held 6
public hearings across the state with invited and
public testimony
Speaker’s Task Force
on Rural Schools, cont.
• Reports issued in May 2014 (posted on WiRSA
website)
o http://thewheelerreport.com/wheeler_docs/files/0506taskforcereport.pdf
o http://legis.wisconsin.gov/assembly/clark/Documents/Vice%20Chair%20R
eport%205.7.pdf
• Reports of findings substantiated the significant
issues facing rural schools
o Chair Report made 17 recommendations for remedy
o Vice-Chair Report made 14 recommendations for remedy
• All testimonies are posted on the WiRSA website:
www.wirsa.org
Speaker’s Task Force
on Rural Schools, cont.
• WiRSA testimony outlined several solutions that were
included in the Task Force recommendations
(posted on WiRSA website)
o TEACH II funding for technology support and expansion in rural schools
o Expansion of Sparsity Aid to include all districts with less than 10 students
per square mile
o Expansion of transportation aid formula
o Rural teacher recruitment and retention through creation of a college
loan forgiveness program for extended service in a rural school district
o Support for Whole Grade Sharing between rural school districts
o Support flexibility in teacher licensure and mandate relief