Superintendent Dan Nerad [184K PDF]:

Every two years the State of Wisconsin goes through a process to finalize a two year budget for all governmental programs. This biennial budget process is the source of the State’s commitment to public education here in Wisconsin, historically driven by legislative guidance to adhere to two-thirds funding.
The two-thirds funding has changed over recent years, but for the most part the State of Wisconsin was able to continue annual increases to public education in an attempt to keep up with rising costs within this sector.
The biennial budget was sigued into law near the end of June by Governor Jim Doyle after various proposals and with relatively few vetoes. This budget has numerous provisions that will effect the future of public education that include:

• Repeal of the Qualified Economic Offer (QEO)
• Decrease in funding for public education by the state of approximately $147 million
• Decrease in the per pupil increase associated with revenue limits

Each of these provisions can and Will have a very unique impact on :MMSD over the years to come. The repeal of the QEO will potentially impact future settlements for salaries and benefits. The decrease in funding for public education by the state is projected to create the need for a tax increase conversation in order to sustain current programs. The decrease in the revenue limit formula will cause MMSD to face more reductions in programs and services fur the next two years at a minimum.
Many public and private organizations are dealing with this issue. It is perhaps a time to make lemonade out of lemons. In the MMSD’s case, getting out of the curriculum creation business (teaching & learning) and placing a renewed focus on hiring the most qualified teachers and letting them run.