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November 5, 2007

Milwaukee School's 9% Property Tax Increase & School Funding Notes

Alan Borsuk:

In his statement, (Milwaukee Mayor Tom) Barrett says, "School Board members must come to grips with the costs of outstanding obligations and annual operations. Tough, fundamental decisions must be made, and must be made soon."

That is something that was widely acknowledged at the board meeting, even as board members used a way of cutting the levy proposal that did not involve having to decide on cutting any current services in MPS.

The approved budget calls for spending $17.1 million less than Andrekopoulos proposed, but that amount will come from not making some pension and debt service payments that were in the budget for this year. MPS financial chief Michelle Nate said the decision, in itself, will not put pension or debt service funds into difficulty, but it is basically a one-time-only solution. And the overall decisions on the budget and the general forecast for MPS mean major changes will have to be made, she said.

This will be the first time in nine years that MPS will not spend the maximum amount allowed by state law, and board members worried about long-term effects. The less a school district spends, the less it gets in state aid in following years. The $17.1 million cut will mean $6.6 million less in state aid a year from now, Nate said.

That means MPS will start its budget process in spring that much further in trouble. Several board members said painful decisions might have to be made on things such as what level of busing the district can continue to offer.

The board did not debate new spending ideas proposed by Andrekopoulos, including $8 million to reduce high school class sizes and improve programs in areas such as foreign language, music and art; $5 million to improve math achievement; and $300,000 to restore ninth-grade basketball teams at some schools. Those ideas effectively were approved.

Related: "The school district must be more efficient, but political and business leaders must work to fix a flawed state aid formula."

Posted by Jim Zellmer at November 5, 2007 12:00 AM
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