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November 7, 2010

Wisconsin Public schools likely to face cash drain

Alan Borsuk

So let's think out loud about what might lie ahead:

State aid to schools. It's hard to see how Republicans are going to keep their campaign promises and fund the same percentage of statewide costs for kindergarten through 12th grade. The state committed itself to paying two-thirds of those costs in the 1990s (under Republican Gov. Tommy G. Thompson). The current rate is a bit below that. But look for Walker to want to do something about this multibillion dollar annual spending. Reductions in state aid would translate into large increases in property taxes (that hardly seems likely, given the state of public opinion) or large cuts in school spending. That leads us to:

Teacher benefits. Look for a lot of action around this. Teachers are deeply defensive of their benefits, especially health insurance plans that are substantially above what almost anybody else has these days. But WEAC, the state teachers union, was among the biggest losers on Tuesday and has few friends in the Capitol now. There's been talk about trying to bring teachers into the state employees' health plan, which costs less than most teacher plans. Now is likely to be the time for doing that. Or maybe other ideas will surface.

Teachers contracts are negotiated locally, so the most powerful thing Republicans can do might be just to give local districts less money and let school officials and local unions figure out what to do about it. My guess is that the Milwaukee teachers union agreed recently to a new contract that goes until 2013, two years longer than the normal agreement, in hope of staving off more concessions at least for that long.

Posted by Jim Zellmer at November 7, 2010 3:42 AM
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