Transcript The Future of Rural Schools A Presentation By Senator Kathleen Vinehout.

The Future of Rural Schools
A Presentation By Senator Kathleen Vinehout
Education choices
are about our future
Increasing Child Poverty
Students Receiving Free and Reduced Lunch
45%
40%
35%
% of WI Public
School Students
30%
25%
20%
04
05
06
07
08
Fiscal Year End
09
10
11
12
Source: DPI, April 2013
State tax revenue is growing
16
14
12
10
Tax Revenue
($ in billions)
8
6
4
2
0
93
94
95
96
97
98
99
00
01
02
03
04
05
06
Fiscal Year Ends
07
08
09
10
11
12
13* 14* 15*
*Estimated
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
Where does money come from?
All Funds
Segregated
Revenue
11%
General
Public
FundOther
Utility
Excise
5%
Corporate
7%
2%
2%
Program Revenue
15%
General Purpose Revenue
45%
Federal Revenue
29%
Sales
32%
Sources: State of WI Budget in Brief, February 2013; Preliminary 2012-13
General Fund Tax Collections August 2013
Income
53%
Where does money go?
All Funds
Corrections
4%
General Funds
Debt
Services
5%
All Other Programs
15%
All Other
Programs
10%
Health Care
30%
Local Public
Schools
35%
Local
Government
14%
Local Government
7%
Transportation*
9%
University of WI System*
17%
*excludes bonding
Local Public Schools
18%
Corrections
8%
University of
Wisconsin
System
7%
Health Care
21%
**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
Total Budgeted Spending: Health grows
rapidly as education spending slows
25
20
Health
Education
15
$ in
billions
UW System
Transportation
10
Shared
Revenue and
Tax Relief
5
0
2001-03
2003-05
2005-07
2007-09
Biennial Budget
2009-11
2011-13
2013-15
Spending plan is up sharply
increases by $10b over 4 budgets
70
Money in billions
68
66
64
62
St. Budget
60
58
56
54
2007-2009 2009-2011 2011-2013 2013-2015
Budget Years
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 Spending
 Tax 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
16
14
12
10
Republican
governor
$ in Billions 8
Democratic
Governor
6
4
2
0
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
Calendar Year
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
 Corrections expansion or improve
 National Guard & Military Affairs
 DNR HQ & park improvements
 Transportation
$233m
$34m
$70m
$23m
$998m
 World Dairy Expo
$9m
 Maritime Museum
$5m
 Family Justice Ctr, MKE
$10m
Not paying debt bills is
Kicking the Can Down the Road
Debt Restructured by Legislative Session
$600
$500
$400
$ in Millions
$300
$200
$100
$0
2001-03
2003-05
2005-07
2007-09
2009-11
2011-13
McCallum
Doyle
Doyle
Doyle
Doyle
Walker
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
350
300
250
200
$ in
Millions
150
100
50
0
91
92
93
94
95
96
97
98
99
00
01
02 03 04 05
Fiscal Year End
06
07
08
09
10
11
12
13
14
15
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 $$ for Private Vouchers
Raise K-8 private school payments to $7,210 (10%)
Raise private high school payments to $7,856 (22%)
Increase in dollars to public schools (yr 1=1.3%)
Increase revenue limit to schools by $75 per pupil
Provide a one-time aid increase of $75 per pupil
Superintendents say they need $230 per student just to
cover cost increases
Public School Spending
Without private school vouchers and independent charter Schools
6.2
6
5.8
5.6
$ in Billions
5.4
5.2
5
4.8
4.6
03
04
05
06
07
08
Fiscal Year End
09
10
11
12
13
Source: DPI, April 2013
It’s time to reconsider the path we are
headed
Senator Vinehout’s
Alternative Budget 2013-2015
Choices & Priorities
Fund Public Schools including items requested by Dept of Public
Instruction
Governor Walker did not fund:
 Fair Funding for Schools
 High Cost Special Education
 Improving Graduation Rates
 Increase for Rural Schools (Sparsity)
 Bilingual-Bicultural Education
 Career & Technical Education Grants
 Science, Technology, Engineering and Math
Education (STEM)
 SAGE increases
 Additional Library Assistance
 High Cost Transportation
Fix Fiscal Problems
 Eliminate Tax Rate Change
& Create 2% Reserve Fund
of $623 million
 Get rid of Structure Deficit
 Cut almost in half Generally
Accepted Accounting
Principles (GAAP) gap
 Remove Transportation
Fund raid on General Fund
 Fix deficit in Children &
Families programs (TANF)
Ended the budget years with
$300 million surplus!
What’s In?
What’s Out?
 Set aside over $600 m in reserves
 All policy unrelated to $$$
 Expand BadgerCare
 Private School tuition tax break
 Change School Funding
 80 new vehicles
 Restore ag, conservation, UW &
 Expanded private school
courts cuts
 Invest in Mental Health, Drug
court & addiction recovery
vouchers
 Sale of state assets in no-bid
contracts
 Return $ to nursing homes
 New & increased tax loopholes
 Expand Family Care
 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
[email protected]
www.legis.wi.gov/senate/sen31/news
877-763-6636 (toll free)