US Federal Government Stimulus / Splurge Funds and Wisconsin School District Budgets

Jason Stein:

The possible cuts come on top of other proposed changes to school finance, including ending an effective 3.8 percent cap on teacher pay and benefits in July 2010.

"I think you can argue that this is the worst state budget for public schools in a generation," said Todd Berry, president of the Wisconsin Taxpayers Alliance, who said a few districts may have to consider closing.

UW-Madison economist Andy Reschovsky said the Madison School District could see a net cut in aid of $4.1 million, or 4.6 percent, possibly forcing program cuts, teacher layoffs and big increases in property taxes. His analysis, which is less precise when looking at any single district, suggests the falling aid could set up Madison schools to raise property taxes by up to 7 percent.

Stimulus math

Over the next two years, the state would cut direct aid to schools by nearly $300 million under a budget proposal that still must be approved by the Assembly and Senate and signed by Doyle. Over that period, the federal government is expected to pump $350 million in stimulus money directly into schools through two main streams. The money would mainly have to be used to help poor and special education students.

Doyle's budget director, Dave Schmiedicke, noted the budget uses some additional stimulus money and $55 million in state money not included in Reschovsky's analysis to offset part of the increase in property taxes.

Related: Wisconsin K-12 Tax and Spending Growth: 1988-2007

Posted by Jim Zellmer at June 7, 2009 3:24 AM
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