State of Wisconsin to seek 5% cut in school, local aid

Steven Walters, Erin Richards & Larry Sandler:

Gov. Jim Doyle said Friday that falling tax collections will force him to propose new cuts of up to 5% in state spending for public schools and aid to local governments.

Aid to public schools has been Doyle's top priority during his 6 1/2 years as governor, and Friday was the first time he said it will have to be reduced.

"There are going to have to be cuts in school aids," Doyle said when he signed a bill rewriting state unemployment compensation laws so that the state can capture federal stimulus funds.

Aid cuts like those envisioned by Doyle could cost Milwaukee Public Schools - the state's largest district - more than $20 million. The cut would cost other districts anywhere from several thousand dollars to several million dollars.

At the same time, Doyle said his plan would include levy limits on districts, which would prevent them from recouping all of the cuts through higher property taxes.

This year, state aid for public schools totals $5.17 billion, according to the Legislative Fiscal Bureau. A 5% cut would cost schools about $258 million, although they are getting federal stimulus money, Doyle noted.

Related, WISTAX:

However, the state pledge to provide two-thirds of schools revenues in 1996-97 changed the budget landscape. By 2006-07, state-tax support for the UW System had almost doubled during Ihe 25 years prior. However, inflation (CPI, up 115%). school aids/credits (320%). and overall slate GPR expenditures (222%) rose more.

Posted by Jim Zellmer at May 16, 2009 6:54 AM
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