A Fascinating Look at K-12 Tax & Spending Politics: WEAC and Wisconsin’s latest Budget

Christian Schneider:

The mood was sour at the WEAC offices in August of 2001. Republican Governor Scott McCallum had signed a budget that only increased school funding by $472 million over the biennium. These new funds, approved by McCallum while the Governor was wrestling with a budget deficit, represented increases of 3.1% and 4.2% in school aids over the 2001-03 biennium.
In a press release following the bill signing, the teachers’ union sneered at McCallum’s paltry effort, calling it a “status quo” budget. At no point in the release did they mention the half a billion in new funds they received – instead, they excoriated McCallum for vetoing a .78% increase in the property tax caps and for vetoing relaxation of the Qualified Economic Offer (QEO) law, which caps teacher salaries. They derided the Republican governor for not increasing aid enough for special education, saying the “lack” of special education funds meant “school districts will be forced to pit special education against other programs, resulting in decisions that hurt all students.” To the extent they mention the increased aids at all, they dismiss them as merely “part of a continuing effort” to hold down property taxes.
Nearly eight years later, Democratic Governor Jim Doyle stood at the podium in front of the Legislature, which was now controlled fully by members of his own party. Faced with a budget deficit of $5.9 billion (much of it his own doing) Doyle announced his intention to increase school aids by $426 million over the biennium. Even public school children in Wisconsin will recognize this as $46 million less than the increase authorized by McCallum in 2001.
Doyle’s budget also included a funding shell game that imperiled school aids in the future. Doyle cut over $500 million in general funds out of school aids and plugged in an equal amount in federal “stimulus” funds to cover the aids – federal funds which may very well not be available in the next budget. On top of that, he funds virtually the entire school aid increase with one-time federal money. When 2011 rolls around, school aids could be over $1 billion in the hole and fighting tooth and nail with other state programs for funding.
Undoubtedly, the small funding increase, coupled with the risky way funds are shifted around to patch up holes, would cause the thoughtful folks at WEAC to have some serious concerns regarding Doyle’s budget.
Surprise! The day after his budget address, WEAC wasted no time in praising the proposed Doyle school funding plan, gushing that it “stays true to Wisconsin’s priorities and values.”

Schneider correctly points out the risks of using stimulus/splurge funds to plug budget holes. Wisconsin K-12 spending has grown significantly over the years, while UW System state tax dollars have been flat.