Neenah school board will decide whether to pursue $115M referendum in April — just a year after voters narrowly rejected the last one

Preliminary voter results. Tamira Madsen:

In the aftermath of the successful Madison Metropolitan School District referendum, many critics and supporters agree on one thing: They were surprised with district voters’ overwhelming approval of the operating referendum.
Nearly 68 percent of voters favored the referendum, which will allow the district to exceed its tax limits by $5 million during the 2009-10 school year, then by an additional $4 million in each of the following two years. The total increase of $13 million will be permanent for every year after that.
The referendum won a majority in almost every ward in the district, but Superintendent Dan Nerad admitted afterward that he wasn’t sure that the initiative would pass due to the tumultuous economy. District officials say the referendum will increase taxes for the owner of an average Madison home by $27.50 the first year, then $43 more the second year and an additional $21 in the third.

Much more on the recent referendum here.

Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, School Climate

Madison School District’s November 2008 Referendum Passes, 68% in favor

November 5, 2008 Jim Zellmer

The tumultuous state of the economy was a nagging concern for supporters of the $13 million Madison Metropolitan School District referendum, but it passed Tuesday night with a surprisingly large 68 percent of the vote.
A handful of wards were still uncounted after midnight, but the totals then were 84,084 in favor and 39,116 opposed to the measure that will allow the school district to raise its taxing limits.
Voters approved an operating referendum to maintain current services, which district officials say shows that the community places a high value on quality education.
“We also knew this was not an easy time for people and that was not lost on us,” Superintendent Dan Nerad said late Tuesday night. “We are heartened by this response, and what this will allow us to do is to maintain our existing programs as we move into a new discussion about what should our priorities be going forward, and involving the community in that discussion in regard to the strategic planning.”
The referendum allows the district to exceed its tax limits by $5 million during the 2009-10 school year, then by an additional $4 million in each of the following two years. The referendum will add $27.50 onto the taxes of a $250,000 home in the first year, district officials say, and add an extra $43 to that tax bill in 2010-11 and an additional $21 to the bill in 2011-12.
The recurring referendum will increase the current tax limit by $13 million in 2011-12 and in every year after that.

The measure, a “recurring referendum,” gives the district permission to build on the previous year’s revenue limit increase by additional amounts of $4 million in 2010-11 and another $4 million in 2011-12. The measure permits a total increase of $13 million — a change that will be permanent, unlike the impact of some other referendums that end after a specified period.
By comparison, the district’s total budget for the current school year is $368 million.
Referendum backers hoped voters would set aside concerns about the economy to help the district avert multimillion-dollar budget cuts that would lead to larger class sizes and other changes in school operations.
The measure faced no organized opposition.

Arlene Silveira:

A big thanks to those who voted in support of the school referendum. Your support is appreciated.
To those who chose not to support the referendum, please let us know why. This feedback is very important to us.
So…what are the next steps? As we have been saying throughout the referendum campaign, the referendum is really only one piece of a bigger picture. A couple of things about the bigger picture. On November 10 we continue our discussions on board-superintendent governance models. How can we best work together to strengthen our focus on student achievement?

My sense of these local questions after observing them for a number of years is that:

33 to 40% of the voters will always vote yes on school related issues, and
30 to 35% will always vote no, or anti-incumbent and,
elections are won or lost based on the remaining 25 to 35% who will vote “independently”.

Budget/Financing, Community Partners, Elections, Events, Governance/Board Decision Making, History - Madison Schools, School Climate, What Can I Do?

November 2008 Madison School District Referendum Watch List Report Card

November 4, 2008 AdminsXss94m 1 Comment

Active Citizens for Education presents this “Watch List Report Card” as a means of reporting relevant information, facts and analyses on topics appropriate for consideration by taxpayers in voting on the Madison Metropolitan School District referendum question November 4, 2008. This document is dynamic in nature, thus it is updated on a regular basis with new information and data. Questions, analyses, clarifications and perspectives will be added to the entries as appropriate. Review Ratings will be applied to report the progress (or lack thereof) of the Board of Education and Administration in its plans, data, information, reports and communications related to the referendum.
Complete PDF Document. Madison School District Revenue Summary 2005-2011 PDF

Budget/Financing, Elections, Governance/Board Decision Making, School Climate

On the Minneapolis Spending & Governance Referendum

October 30, 2008 Jim Zellmer

Tom Weber:

Anyone keeping tabs of next week’s election in the Minneapolis School District is likely aware of a $60 million levy that would raise property taxes to garner more funding for schools. But there’s also a second question on the ballot that’s not getting much attention.
Minneapolis, Minn. — The first question would raise property taxes on a $250,000 house by about $200 a year.
Supporters, like Superintendent Bill Green, say the extra money is needed because the state hasn’t kept pace with education funding, and the district will have to make deep budget cuts without the extra money.
When we ran the previous referendum, it was based on an assumption that the state and federal government would continue the allocation formula they had set out,” Green said. “That we would be able to anticipate that they would keep pace with the cost of living and other factors.
“They didn’t, and so we feel we can’t make the same assumptions (now).”
There is no formal campaign opposing the levy, but voters have expressed opposition.

Advocating for the November, 2008 Madison School District Referendum

October 29, 2008 Jim Zellmer

Paul Soglin:

On next Tuesday’s ballot there is a referendum for Madison Metropolitan School District residents to vote on supporting public education.
As one Wisconsin business leader put it when discussing the challenges of global competition which includes everything from taxation to environmental regulation, “What I need is an intelligent workforce.”
We invest every day. Some investments turn out better than others.
There is really no wiser and prudent investment than the education of our children.
An educated child makes more money and pays taxes. An uneducated child is in need of public support for housing, healthcare, and food. An educated child is less likely to go to prison and more likely to support charities. An uneducated child is more likely to become a parent at a young age and is likely to have greater health problems.

Much more on the referendum here.
Related: Don Severson & Vicki McKenna discuss the referendum (25mb mp3 audio).

Budget/Financing, Elections, Governance/Board Decision Making, School Climate

November 2008 Madison Schools’ Referendum Roundup

October 27, 2008 Jim Zellmer 1 Comment

Dave Blaska:

The prevailing wisdom is that the referendum will pass. The prevailing wisdom is probably correct. There has been no organized effort to fight it, unlike three years ago. And the surge of Obama voters, the scent of victory in their flaring nostrils, will carry along the schools in that high tide that lifts all boats. The Wisconsin State Journal has yet to do any serious journalism on the issue. It’s been lost in the shuffle.
On the other hand, the stock market is in the toilet and with it, people’s retirement plans. Home values are falling. Layoffs are accelerating. Energy prices are moderating but still expensive. And in the near future: a recession of unknown duration. So, maybe it doesn’t pass.
The referendum was recommended 7-0 August 26 by the overly harmonious school board, including Lucy Mathiak, who once teamed with Ruth Robarts and Laurie Kobza. Those two, however, are no longer serving.
I give Ed Hughes credit for reaching out to this irascible blogger. The schools have not done enough of that in the past. I am thinking now of former TV-3 news anchor Beth Zurbuchen, who infamously dissed of opponents of the referendum three years ago for being “selfish.”
Two of the three spending referenda were defeated that year, in no small part to such arrogance. I made that point with Ed Hughes. For arrogance this year, we have Marge Passman of Progressive Dane. You can hear Mitch Henck sputtering with amazement on his WIBA radio program Outside the Box as Passman makes the most ridiculous comments.

Greg Mankiw on proposed federal income tax changes:

One Madison voter with a ballot discrepancy said that she’s now questioning whether these mistakes are really mistakes, WISC-TV reported.
When Carole McGuire received her absentee ballot, she said something didn’t look right. “The ballot came, and I thought, ‘That’s odd,'” said McGuire.
She said that noticed that among all the races, the Madison Metropolitan School District referendum was nowhere to be found.
“Here is where the school district referendum would be, and it’s not there,” said McGuire, who then called the city clerk.
“I said, ‘This isn’t the correct ballot,'” said McGuire. “She said, ‘Oh well, tear it up and we’ll give you a new one.’ I said, ‘No, I don’t want to tear it up at the moment, I’ll come back.’

Paul Caron on declines in state income, sales tax and fee revenues:

States are beginning to report revenue collections for the July-September 2008 quarter, and the new figures raise the likelihood that large, additional budget shortfalls are developing. Of 15 mostly large and mid-sized states that have published complete data for this period, the majority collected less total tax revenue in July-September 2008 than was collected in the same period in 2007. … After adjustment for inflation, total revenue collections are below 2007 levels in 14 of the 15 states.

Shelly Banjo compares McCain & Obama’s tax plans.
Much more on the November 4, 2008 Madison referendum here.

Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, History - Madison Schools, What Can I Do?

In Support of the November, 2008 Madison Schools’ Referendum

October 25, 2008 AdminsXss94m

In just a few days we have the opportunity and the responsibility to show our continuing support for Madison Public Schools by voting yes for the school district referendum. Please remember to vote for the referendum as you do your balloting and please talk with friends and family and urge their support for the referendum also.
In case you didn?t see the Wisconsin State Journal endorsement of the referendum, please click on the following link. For the Cap Times endorsement, click on this link. Then, read my guest column which appeared in the State Journal on October 10 and the Cap Times on October 22; here is the link to that letter. Cumulatively, these three pieces help explain the educational importance of the district initiative and the responsibility of Madison residents to support it.
If Madison residents need help understanding the property tax implications of the referendum, the following paragraphs may help some.
Passage of the referendum will permanently increase the revenue cap for operating costs by $5 million in 2009-2010, and by $4 million in both 2010-11 and 2011-12 for a total request of $13 million over the three-year period.
The average Madison homeowner would see their tax bill increase by $27.50 in 2009; $43.10 in 2010; and $20.90 in 2011. However, in 2008, school property taxes on the average home will decrease about $40. Therefore, in 2011, average homeowners will pay $51.50 more in school taxes than they paid in 2007. That means many of us will still pay less school tax in 2011 than we paid in 1994. Unbelievable, but true.
In 1993-94 Madison’s mil rate for its schools was 19.15; in 2007 it was 10.08, almost half of what it was. Unless your home assessment has doubled in that period of time (which it may have), your school property tax has gone down. If your home assessment doubled, your school property tax would be about the same now as it was in 1993-94. Again, even with passage of the referendum, many Madison taxpayers will be paying less in school taxes in 2011 than they did in 1994.
Thank you for your continued support of Madison Schools and Madison kids. Together we make the community a stronger, more vibrant place for all of us to live.
Barbara Arnold, member of GRUMPS (Grandparents United For Madison Public Schools) Steering Committee and a former President of the Madison Board of Education
barbaraarnold@charter.net

Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, History - Madison Schools

Advocating a Yes Vote for the November, 2008 Madison Referendum

October 23, 2008 Jim Zellmer

A Capital Times Editorial:

Even with approval of the referendum, district administrations would have to run a tight ship. They are not asking taxpayers to bridge all the gaps created by the anticipated deficits. They are prepared to trim budgets and delay the initiation of programs until economic circumstances improve or, ideally, the state accepts more of its deferred responsibilities.
Weighing the big-picture educational challenges that we face as a community, a state and a nation, as well as the hometown reality of strong schools facing genuine threats, this referendum does not pose a difficult choice.
The only vote that makes sense is “yes.”
It is essential for everyone who is heading to the polls on Nov. 4 to decide the presidential race between two men who say education is a priority — as well as every voter who casts an early ballot — and to make the extra effort to find the referendum question and mark that “yes” box.

Much more on the referendum here. Related: “Formal opposition begins to form“.

Budget/Financing, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate

Madison November 2008 Referendum Updates

October 22, 2008 Jim Zellmer

Andy Hall & Chris Rickert:

In Oregon, if the referendum passes, it’ll mean $10 more a year for property tax payers.
In Madison though, the bill is higher, over the three years of the referendum the average cost to taxpayers is about $65.
Some parents told WISC-TV if it means more money out of their pocket, then they’re saying no to a referendum.
But most Madison parents WISC-TV spoke with facing those tough cuts say they’ll support it.
There are other issues on ballots in the area including, the MMDS asking to exceed revenue limits by $13 million.

A clerical mistake in the Madison city clerk’s office means about 20 voters within the Madison School District got absentee ballots that do not have the district’s $13 million referendum question on it, city and district officials said Tuesday.
Madison City Clerk Maribeth Witzel-Behl said six of those voters have come forward, and she urged other district residents who aren’t sure if they voted on the question to call her office so her staff can destroy their old ballots and issue new ones.
Witzel-Behl said the mistake occurred because one of her employees created mailing labels for the absentee ballots’ envelopes that did not identify the voter as a resident of the School District.
“My best guess is we’re looking at less than 20 ballots total,” she said.

WKOW-TV:

There was plenty of food and equally as much information at the Goodman Community center.
The Tenny Lapham Neighborhood Association held a spaghetti dinner to help community members understand the madison school districts recurring referendum on the November ballot.
“The school referendum us a complicated issue especially in the times that we are in– people are concerned about something that is going to increase their tax bill,” says association member Carole Trone.
Here’s how the referendum works.
The referendum asks to exceed the revenue limit by $5 five million next school year.

Much more on the November, 2008 Madison referendum here.

Wisconsin State Journal Editorial:

Referendum Climate: Fiscal Policy Report on the Nation’s Governors

October 21, 2008 Jim Zellmer

Chris Edwards:

evenue poured into state governments as the U.S. economy expanded between 2003 and 2007, prompting the nation’s governors to expand state budgets and offer the occasional tax cut. But now that the economy has slowed and revenue growth is down, governors are taking various actions to close rising budget deficits.
This ninth biennial fiscal report card examines the tax and spending decisions made by the governors since 2003. It uses statistical data to grade the governors on their taxing and spending records – governors who have cut taxes and spending the most receive the highest grades, while those who have increased taxes and spending the most receive the lowest grades.
Three governors were awarded an “A” in this report card – Charlie Crist of Florida, Mark Sanford of South Carolina, and Joe Manchin of West Virginia. Eight governors were awarded an “F” – Martin O’Malley of Maryland, Ted Kulongoski of Oregon, Rod Blagojevich of Illinois, Chet Culver of Iowa, Jon Corzine of New Jersey, Bob Riley of Alabama, Jodi Rell of Connecticut, and C. L. “Butch” Otter of Idaho.

Wisconsin’s Governor Doyle received a “D”:

When running for governor, James Doyle pledged not to raise taxes. He mostly kept that promise his first few years, and even provided a smattering of tax cuts. His fiscal policies then took a turn for the worse. In 2007 he proposed an array of large tax increases totaling about $900 million, including higher cigarette taxes, hospital taxes, oil company taxes, and increased real estate transfer taxes. Doyle has also refused to go along with the legislature in providing property tax relief, and he is fond of using increased debt to finance spending. But Doyle’s spending record is better than his tax record, and this year he is insisting on budget restraint to eliminate a deficit.

Much more on Madison’s November, 2008 referendum here.

Budget/Financing, Community Partners, Curriculum, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate

Madison 2008 Referendum: Vote ‘yes’ and expect more

October 18, 2008 Jim Zellmer

It’s a difficult time for Madison schools to be asking property taxpayers for more money.
But it also is a very tough time for Madison schools to be reducing services for students — a large and growing percentage of whom need extra or tailored help to succeed.
That’s why Madison should vote “yes” on its school referendum Nov. 4 — with one big demand in return. Moving forward, school leaders and, especially, the teachers union need to commit to more innovation and evaluation of existing school programs.
That means more charter and specialty schools to excite parents and to give struggling students concrete evidence of a successful career path after graduation

Much more on the November, 2008 Madison referendum here.

Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, School Climate

“Madison Schools Referendum Prospects Look Good”

October 16, 2008 Jim Zellmer

Jason Shephard:

November’s referendum seeks to permanently increase the revenue cap for operating costs by $5 million in 2009-10, and an additional $4 million in both 2010-11 and 2011-12, for a total of $13 million. These increases would be permanent.
The projected tax hike on an average $250,000 home is $27.50 in 2009, $70.60 in 2010, and $91.50 in 2011, for a total three-year increase of $189.60.
To demonstrate fiscal discipline, Nerad has committed to making $1 million in cuts this year, including $600,000 in staff positions, even if the referendum passes. And Nerad pledges $2.5 million in additional spending cuts in the two subsequent years. The district will also transfer $2 million from its cash balance to offset the budget deficit.
Other savings will come from a new fund that allows the district to spread out capital costs over a longer period of time, remove some costs from the operating budget, and receive more state aid.
“We are committed to making reductions, finding efficiencies and being good stewards of tax dollars,” Nerad says. “We realize this is a difficult time for people. At the same time, we have an obligation to serve our children well.”
Don Severson, head of the fiscally conservative watchdog group Active Citizens for Education and a persistent referendum critic, wishes the district would have developed its new strategic plans before launching a ballot initiative.
“This money is to continue the same services that have not provided increases in student achievement” and come with no guarantees of program evaluations or instructional changes, Severson says.

Much more on the November, 2008 Madison referendum here.

Board Meeting Archives, Budget/Financing, Community Partners, Elections, Events, Governance/Board Decision Making, History - Madison Schools, School Climate

ACE Update on the November 2008 Madison Referendum, Information Session Tonight

October 16, 2008 AdminsXss94m 2 Comments

REMINDER: The MMSD district is holding its second of four “Information Sessions” regarding the referendum tonight (Thursday, October 16), 6:30 pm, Jefferson Middle School. You are urged to attend.
The Madison Metropolitan School District seeks approval of the district taxpayers to permanently exceed the revenue cap for operations money by $13 million a year. In the meantime, to establish that new tax base over the next three years, a total of $27 million in more revenue will have been raised for programs and services. The district has also projected there will continue to be a ‘gap’ or shortfall of revenue to meet expenses of approximately $4 million per year after the next three years, thereby expecting to seek approval for additional spending authority.
Whereas, the Board of Education has staked the future of the district on increased spending to maintain current programs and services for a “high quality education;”
Whereas, student performance on the Wisconsin Knowledge and Concepts Exams has languished at the 7, 8, and 9 deciles (in comparison with the rest of the state’s schools where 1 is the highest level and 10 is the lowest) in 4th, 8th and 10th grade reading, math, science, social studies and language arts exams for the past five years. The total percentage of MMSD students performing at either “proficient” or “advanced” levels (the two highest standards) has consistently ranged in mid 60%s to mid 70%s;
Whereas, the district Drop Out Rate of 2.7% (2006-07) was the highest since 1998-99. With the exception of two years with slight declines, the rate has risen steadily since 1999.
Whereas, the Attendance Rate for all students has remained basically steady since 1998-99 in a range from 95.2% (2005-06) to a high of 96.5% (2001-02);
Whereas, the district Truancy Rate of students habitually truant has risen again in the past three years to 6.0% in 2006-07. The truancy rate has ranged from 6.3% (1999-2000) to 4.4% in 2002-03;
Whereas, the district total PreK-12 enrollment has declined from 25,087 (2000-01) to its second lowest total of 24,540 (2008-09) since that time;
Whereas, the district annual budget has increased from approximately $183 million in 1994-1995 (the first year of revenue caps) to approximately $368 million (2008-09);
Whereas, the board explains the ‘budget gap’ between revenue and expenses as created by the difference between the state mandated Qualified Economic Offer of 3.8% minimum for salary and health benefits for professional teaching staff and the 2.2% average annual increases per student in the property tax levy. The district, however, has agreed with the teachers’ union for an average 4.24% in annual increases since 2001;
Whereas, the district annual cost per pupil is the second highest in the state at $13,280 for the school year 2007-08;

Budget/Financing, Elections

Is the 2008 School Referendum Just More of the Same? No!

October 15, 2008 AdminsXss94m

On November 4, the Madison School Board is asking voters to vote yes on a referendum that will increase the property tax support base for Madison’s public schools by a total of $13 million after three years. For owners of a $250,000, that translates to an additional $90 in property taxes by the third year. … Continue reading Is the 2008 School Referendum Just More of the Same? No! →

Budget/Financing, Community Partners, Curriculum, Discipline / Violence, Elections, Events, Governance/Board Decision Making, History - Madison Schools, School Climate, Staff Support, Student Support, Teacher Support

2008 Madison Schools’ Referendum – Key Issues

October 13, 2008 AdminsXss94m 17 Comments

1. Mortgage on future property with permanent increase: Asking taxpayers to refinance/mortgage their futures and that of the school district with a permanent increase of $13 million yearly for the operations budget. It has been stated the district needs the money to help keep current programs in place. It is expected that even after 3 years of this referendum totaling $27 million, the Board is projecting a continued revenue gap and will be back asking for even more.
2. No evaluation nor analysis of programs and services: The Board will make budget cuts affecting program and services, whether or not this referendum passes. The cuts will be made with no assessment/evaluation process or strategy for objective analyses of educational or business programs and services to determine the most effective and efficient use of money they already have as well as for the additional money they are asking with this referendum.
3. Inflated criteria for property value growth: The dollar impact on property to be taxed is projected on an inflated criteria of 4% growth in property valuation assessment; therefore, reducing the cost projection for the property tax levy. The growth for property valuation in 2007 was 3.2% and for 2008 it was 1.0%. Given the state of the economy and the housing market, the growth rate is expected to further decline in 2009. [10/13 Update: The above references to property valuation assessment growth are cited from City of Madison Assessor data. See ACE document “Watch List Report Card” [2008 Referendum Watch List 755K PDF] for State Department of Revenue citations for property valuation base and growth rate used for determination of MMSD property tax levy.]
4. No direct impact on student learning and classroom instruction: There is District acknowledgement of a serious achievement gap between low-income and minority student groups compared with others. There are no plans evident for changing how new or existing money will be spent differently in order to have an impact on improving student learning/achievement and instructional effectiveness.
5. Lack of verification of reduction in negative aid impact on taxes: District scenarios illustrating a drastic reduction in the negative impact on state aids from our property-rich district is unsubstantiated and unverified, as well as raising questions about unknown possible future unintended consequences. The illustrated reduction is from approximately 60% to 1% results by switching maintenance funds from the operations budget and 2005 referendum proceeds to a newly created “Capital Expansion Fund–Fund 41” account. [Update: 10/13: The reduction in the negative aid impact will take affect regardless of the outcome of the referendum vote. See the ACE document “Watch List Report Card” [2008 Referendum Watch List 755K PDF] for details.]

Budget/Financing, Elections

Referendum Climate: Tax-cutting questions appear on ballots next month

October 11, 2008 Jim Zellmer

Steve LeBlanc:

For years, Massachusetts was known derisively as “Taxachusetts.” But voters could help shed that label in November by completely eliminating the state’s income tax in a single stroke.
If approved, the ballot initiative would wipe out 40 percent of state revenues and give back to each taxpayer an average of $3,600.
The Massachusetts proposal is the most notable of several tax-cutting questions that will appear next month on ballots around the nation.
Others include a North Dakota initiative to cut individual income tax rates in half and trim corporate rates by 15 percent; an Arizona measure to mandate that any initiatives requiring spending or tax increases be approved by majority of all registered voters, not just those casting ballots; and a Maine plan to repeal new taxes on beer, wine and soda.
In Massachusetts, critics say there’s no way to chop $11 billion out of a $28 billion budget without decimating services, which could include closing schools and fire stations. Aid to cities and towns would also decline, placing enormous pressure on property taxes.

Massachusetts, is of course, home of the “Boston Tea Party“.

Board Meeting Archives, Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate

A Public Hearing on Madison’s November, 2008 Referendum

October 8, 2008 Jim Zellmer 1 Comment

Taxpayers got a chance to ask the questions Tuesday night about the upcoming multimillion dollar Madison school referendum.
More than a dozen people turned out to Sherman Middle School for the first of four public hearings across the city.
Superintendent Dan Nerad gave a brief presentation before opening the forum up for questions.
Voters questioned everything from Fund 80 to the Capital Expansion Fund and student achievement.
Active Citizens for Education said they would like to have seen the referendum scheduled for the spring in order to give the district time to re-evaluate programs that they say are not working – programs that could be cut or changed.
“Where they’re talking about maintaining current programs and services it’s not getting good results,” said ACE’s Don Severson. “You look at the achievement gap, look at increased truancy, look an an increased drop-out rate, decreased attendance rates, more money isn’t going to get different results.”
Referendum supporters, Communities And Schools Together, know the $13 million referendum will be a tough sell, but worth it.
“I think it is going to be a hard sell,” said CAST member and first-grade teacher Troy Dassler. “We really need to get people out there who are interested still in investing in infrastructure. I can think of no greater an investment — even in the most difficult tough times that we’re facing that we wouldn’t invest in the future of Madison.”

School Board President Arlene Silveira was pleased with the dialogue and questions asked at the forum and said she hasn’t been overwhelmed with questions from constituents about the referendum.
“It’s been fairly quiet, and I think it’s been overshadowed by the presidential election and (downturn with) the economy,” Silveira said. “People are very interested, but it does take an explanation.
“People ask a lot of questions just because it’s different (with the tax components). Their initial reaction is: Tell me what this is again and what this means? They realize a lot of thought and work has gone into this and certainly this is something they will support or consider supporting after they go back and look at their own personal needs.”
Superintendent Dan Nerad has already formulated a plan for program and service cuts in the 2009-2010 budget if voters do not pass the referendum. Those include increasing class sizes at elementary and high schools, trimming services for at-risk students, reducing high school support staff, decreasing special education staffing, and eliminating some maintenance projects.
Nerad said outlining potential budget cuts by general categories as opposed to specific programs was the best route for the district at this juncture.

Referendum Climate: Madison Mayor Proposes 6% City Budget Spending Increase

October 7, 2008 Jim Zellmer

Dean Mosiman:

Cieslewicz today will propose a $237.9 million “share the pain” operating budget that raises city taxes $53 on the average $247,974 home.
The proposed budget, a 6 percent spending increase — the largest Cieslewicz has ever offered — delivers new money for police, fire, the library and Metro Transit, but freezes or cuts spending in many areas.
“You’ll find no extreme cuts to any one agency, but many small cuts,” Cieslewicz said. “We did manage to keep long-term commitments.”
The 2.9 percent increase in taxes on the average home is among the fifth-lowest in 30 years, but overall tax collections are up 8 percent, the biggest increase since 1993.
“I was focused primarily on taxes on the average home,” Cieslewicz said. “That is what people experience.”

Much more on the 2008 Madison School District referendum here.

Referendum Climate: Wisconsin Property Tax Ranking

October 1, 2008 Jim Zellmer

The Tax Foundation, Via TaxProf. Much more on the November, 2008 referendum here.

Budget/Financing, Community Partners, Elections, Events, History - Madison Schools, School Climate

Madison School Referendum Training 10/2/2008

September 29, 2008 Jim Zellmer

Via a Matt Calvert email:

Community and Schools Together

Referendum Training
Thursday, October 2, 2008
7:00 PM (We’ll be done at 8 so you can catch most of the v.p. debate)
MTI Conference Room
821 Williamson St. (parking available)
Familiarize yourself with the details of the referendum.
Get information to share with others.
Sign up for opportunities to meet with groups or staff tables before the November election.
RSVP to Matt Calvert at 255-9417 or calvert.matthew@gmail.com

Budget/Financing, Elections, School Climate, What Can I Do?

Referendum Climate: A Look at the US Government Budget

September 29, 2008 Jim Zellmer

.

NY Times Graphics.
Related:

Wisconsin State Tax Based K-12 Spending Growth Far Exceeds University Funding
Referendum Climate: Charts – Enrollment; Local, State, Federal and Global Education Spending
Property Tax Effect – Madison School District
K-12 Tax & Spending Climate
The subject of local property taxes, state and federal income taxes and fees vis a vis school spending was discussed at Madison Superintendent Dan Nerad’s recent appearance at the Dane County Public Affairs Council

Further proof that there is no free lunch. The ongoing calls for additional state redistributed tax dollars for K-12 public education will likely have an effect on other programs, as this information illustrates. I do think that there should be a conversation on spending priorities.

The current financial system “crisis” presents parents with an excellent opportunity to chat with our children about money, banks, politics and taxes (When you deposit the baby sitting money, where does it go? What happens if the funds are no longer in the bank?). It is a rather potent mix. Much more, here.

Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate, What Can I Do?

Madison 2008 Referendum: Watch List Report Card

September 28, 2008 AdminsXss94m

10/6/2008 update (pdf)
Active Citizens for Education presents this “Watch List Report Card” as a means of reporting relevant information, facts and analyses on topics appropriate for consideration by taxpayers in voting on the Madison Metropolitan School District referendum question November 4, 2008.
This document is dynamic in nature, thus it is updated on a regular basis with new information and data. Questions, analyses, clarifications and perspectives will be added to the entries as appropriate. Review Ratings will be applied to report the progress (or lack thereof) of the Board of Education and Administration in its plans, data, information, reports and communications related to the referendum.
The question which shall appear on the ballot is as follows:

“Shall the following Resolution be approved?
RESOLUTION AUTHORIZING THE SCHOOL DISTRICT BUDGET TO EXCEED REVENUE LIMIT FOR RECURRING PURPOSES
BE IT RESOLVED by the School Board of the Madison Metropolitan School District, Dane County, Wisconsin that the revenues included in the School District budget be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, for recurring purposes by: $5,000,000 beginning in the 2009-2010 school year; an additional $4,000,000 beginning in the 2010-2011 school year (for a total of $9,000,000); and an additional $4,000,000 beginning in the 2011-2012 school year (for a total of $13,000,000 in 2011-2012 and each year thereafter).”

(Source: MMSD Administration 09/15/08)
Continue reading here (277K PDF).

Budget/Financing, Community Partners, Elections, Events, Governance/Board Decision Making, History - Madison Schools, School Climate

Madison High School Students Organize and Push Referendum

September 24, 2008 Jim Zellmer

Tamira Madsen: Kaley Stroup has seen the impact school budget cuts have had on classmates and friends at La Follette High School. Officials at La Follette were forced to drop the Italian language program from the curriculum for the 2008-09 school year, and students had to scramble to restructure their class schedules. Stroup said elimination … Continue reading Madison High School Students Organize and Push Referendum →

Referendum Climate: Washington must heed fiscal alarm bell

September 23, 2008 Jim Zellmer

Dave Walker:

Beyond the turmoil for banks and homeowners, however, there is a super-sub-prime crisis brewing in Washington. Our fiscal policies have created a disconnect between today’s citizens and future taxpayers. Today’s taxpayers benefit from high government spending and low taxes, while future generations are expected to pay the bill. Our real challenge is where we are headed on our do-nothing fiscal path.
Washington has charged everything to the nation’s credit card – engaging in tax cuts and spending increases without paying for them. Washington’s imprudent, unethical and even immoral behaviour is facilitated by a lack of transparency. For example, as of September 30, 2007 the federal government was in a $53,000bn dollar fiscal hole, equal to $455,000 per household and $175,000 per person. This burden is rising every year by $6,600-$9,900 per American. Medicare represents $34,000bn of this deficit and the related Medicare trust fund is set to run dry within 10 years. The Social Security programme is projected to have negative cash flow within about 10 years.

Wisconsin State Journal Editorial:

Referendum Climate: “Missing Step: Control Spending”

September 21, 2008 Jim Zellmer

Wisconsin received more evidence this week that its taxes are too high.
This time the evidence arrived in a study suggesting that Wisconsin may be just a few tax cuts away from becoming one of the nation’s economic hot spots.
The study, from the Pacific Research Institute in association with Forbes magazine, should give state and local policymakers new incentive to control spending so that taxes can be reduced.
The study of all 50 states, called the economic freedom index report, considered a variety of factors from tax levels to justice systems to make conclusions about how much economic freedom each state allows.
The goal was to forecast which states offer the freedom that should lead to prosperity in years to come.
The study showed that Wisconsin made the biggest leap forward among all states since a similar study was completed in 2004.

Much more on the November, 2008 Madison referendum here.

Budget/Financing, Elections, Events, Governance/Board Decision Making, History - Madison Schools, What Can I Do?

Madison CAST November, 2008 Referendum Neighborhood & PTO Newsletter

September 16, 2008 AdminsXss94m

We are asking if you would put this in your school newsletters and share it with your members as we need your help to spread the word about the referendum to your friends and neighbors. Please feel free to share the attached with your neighborhood newsletters as well.
Jackie Woodruff jkwoodruff@charter.net
Communites and Schools Together Treasurer
On November 4, 2008 voters in the Madison school district will decide on a funding referendum that is crucial to the future of our children and our community.
Good schools are the backbone of a healthy community. Our public schools are essential for expanding prosperity, creating opportunity, overcoming inequality, and assuring an informed, involved citizenry. Madison’s public schools have been highly successful and highly regarded for many years. We’ve learned that quality public education comes from well-trained teachers, the hard work of our students and teachers, and also from a steady commitment from the community at large.
After several public forums, study, and deliberation, the Board of Education has unanimously recommended that our community go to referendum, to allow the board to budget responsibly and exceed the revenue caps for the 2009-2012 school years. The referendum is a compromise proposal in that it seeks to offset only about 60% of the estimated budget shortfall in order to keep tax increases low.
The projection is that school property taxes would increase by less than 2%. Even with increased property values and a successful referendum, most property owners will still pay less school property taxes than they did in 2001.
Most importantly, this November 4th, the voters in Madison can recommit to public education and its ideals by passing a referendum for the Madison Metropolitan School District.
Thank you so much for your work and support for Madison’s Public Schools, Communities and Schools Together (CAST) – a grassroots organization devoted to educating and advocating on behalf of quality schools — needs your help in support of the November referendum. We need volunteers to help distribute literature, put up yard signs, host house parties for neighbors, write letters to the editor–but most of all we need your support by voting YES on the referendum question.
Keep our schools and communities strong by supporting the referendum. To learn more, donate to the campaign or get involved–visit Community and Schools Together (CAST) at www.madisoncast.org.

Budget/Financing, Elections, Events, Governance/Board Decision Making

Accounting change may aid November 2008 Madison referendum

September 14, 2008 Jim Zellmer

Wisconsin State Journal Editorial:

More than 60 Wisconsin school districts got an earlier start than Madison did in instituting a bookkeeping change that potentially saves local property owners millions of dollars in taxes.
But led by a new superintendent and business manager, Madison last month adopted the accounting measure — a move that school officials hope will strengthen community support for a Nov. 4 referendum.
The referendum will ask voters for a three-year series of permanent tax increases to generate $13 million to avert multimillion-dollar budget cuts.

Much more on the November 2008 referendum here.

Budget/Financing, Elections, Governance/Board Decision Making, School Climate

Referendum Climate: “State Budget Keeps Getting Worse”

August 28, 2008 Jim Zellmer

The house of cards known as the state budget is predictably collapsing.
A Dane County judge heard arguments this week on the legality of a $200 million raid state leaders made on a special fund that’s supposed to cover large medical malpractice awards.
Doctors pay into the fund to hold down their insurance rates. So the Wisconsin Medical Society, which represents about 60 percent of doctors, sued the state last year after the governor and Legislature raiding the fund to patch a state budget hole.
The state raid was just the latest in a series of poor financial moves that voters should remember when voting for legislative candidates this fall.
Voters should favor those candidates willing to scrutinize spending and resist expensive new programs. The accounting tricks and money raids need to stop. And the longer Wisconsin waits to get its financial house in order, the harder and more painful it will be to fix.

Board Meeting Archives, Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate

November 2008 Referendum Chatter

August 26, 2008 Jim Zellmer

Mitch Henck discusses Monday evening’s Madison School Board 7-0 vote to proceed with a recurring referendum this November. 19 minutes into this 15mb mp3. Topics include: property taxes, uncontested elections, health care costs, concessions before negotiations and local control. Via a kind reader’s email.

Budget/Financing, Elections, Fund Raising, Governance/Board Decision Making, History - Madison Schools, What Can I Do?

In Support of the November, 2008 Madison School District Referendum

August 26, 2008 Jim Zellmer

Community and Schools Together:

We have a referendum!
Community and Schools Together (CAST) has been working to educate the public on the need to change the state finance system and support referendums that preserve and expand the good our schools do. We are eager to continue this work and help pass the referendum the Madison Metropolitan School District Board of Education approved on Monday, August 25, 2008.
“The support and interest from everyone has been great,” said Franklin and Wright parent and CAST member Thomas J. Mertz. “We’ve got a strong organization, lots of enthusiasm, and we’re ready to do everything we can to pass this referendum and move our schools beyond the painful annual cuts. Our community values education. It’s a good referendum and we are confident the community will support it.”
Community and Schools Together (CAST) strongly supports the Madison Metropolitan School District Board of Education’s decision to place a three-year recurring referendum on the November 4, 2008 ballot. This is the best way for the district to address the legislated structural deficit we will face over the next few years.

Much more on the November, 2008 Referendum here.

Books, Budget/Financing, Elections, Governance/Board Decision Making, School Climate

Madison School Board OKs Nov. referendum

August 25, 2008 Jim Zellmer 2 Comments

Members of the Madison School Board will ask city taxpayers to help finance the Madison Metropolitan School District budget, voting Monday night to move forward with a school referendum.
The referendum will be on the ballot on Election Day, Nov. 4.
Superintendent Dan Nerad outlined a recommendation last week for the board to approve a recurring referendum asking to exceed revenue limits by $5 million during the 2009-10 school year, $4 million for 2010-11 and $4 million for 2011-12. With a recurring referendum, the authority afforded by the community continues permanently, as opposed to other referendums that conclude after a period of time.
Accounting initiatives that would soften the impact on taxpayers were also approved Monday.
One part of the initiative would return $2 million to taxpayers from the Community Services Fund, which is used for afterschool programs. The second part of the initiative would spread the costs of facility maintenance projects over a longer period.

Madison School District voters on Nov. 4 will be asked to approve permanent tax increases in the district to head off projected multimillion-dollar budget shortfalls.
In a pair of 7-0 votes, the Madison School Board on Monday night approved a proposal from Superintendent Daniel Nerad to hold a referendum and to adopt a series of accounting measures to reduce their effect on taxpayers.
Nerad said the district would work “day and night” to meet with residents and make information available about the need for the additional money to avert what school officials say would be devastating cuts in programs and services beginning in 2009-10, when the projected budget shortfall is $8.1 million.

WKOW-TV:

“I understand this goes to the community to see if this is something they support. We’re going to do our best to provide good information,” said Nerad.
Some citizens who spoke at Monday’s meeting echoed the sentiments of board members and school officials.
“Our schools are already underfunded,” said one man.
However, others spoke against the plan. “This is virtually a blank check from taxpayers.

Superintendent Dan Nerad had to act quickly to put the plan together, facing the $8 million shortfall in his first few days on the job.
“I will never hesitate to look for where we can become more efficient and where we can make reductions,” said Nerad. “But I think we can say $8 million in program cuts, if it were only done that way, would have a significant impact on our kids.”
The plan was highly praised by most board members, but not by everyone who attended the meeting.
“This virtually gives the board a blank check from all of Madison’s taxpayers’ checkbooks,” said Madison resident David Glomp. “It may very well allow the school board members to never have to do the heavy lifting of developing a real long-term cost saving.”

NBC 15:

“We need to respect the views of those who disagree with us and that doesn’t mean they’re anti-school or anti-kids,” says board member Ed Hughes.
Board members stressed, the additional money would not be used to create new programs, like 4-year-old kindergarten.
“What’s a miracle is that our schools are continuing to function and I think that’s the conversation happening around Wisconsin, now, says board vice president Lucy Mathiak. “How much longer can we do this?”
The referendum question will appear on the November 4th general election ballot.
The board will discuss its educational campaign at its September 8th meeting.

Much more on the planned November, 2008 referendum here.
TJ Mertz on the “blank check“.

Budget/Financing, Elections, Fund Raising, Governance/Board Decision Making, History - Madison Schools, School Climate

Referendum Climate: Charts – Enrollment; Local, State, Federal and Global Education Spending

August 25, 2008 Jim Zellmer 15 Comments

Variations of this question are often asked: “Are we spending too much, too little or just the right amount on education?” I thought it might be useful to have a look at some local, state, federal and global information. Click to view the charts in detail:

Madison School District Enrollment: 1994-2007 (the demographics have changed during this time)	Madison School District Budgets: 1995-2009	Percentage of Wisconsin General Purpose State Tax Revenue Spent on K-12 School Districts: 1972-2007
Wisconsin State Tax Dollars Spent on K-12 School Districts: 1972-2007	US Government Tax Revenue, by Source: 1965-2005	Composition of US Government Spending: 1965-2005
Total US Governement Debt, as a percentage of GDP	Wisconsin General Purpose Revenue Tax Receipts by Category: 1971-2007	Global Distribution of public expenditure on Education: ages 5 to 25

Data via the Madison School District (various budget documents and statistics), The Wisconsin Taxpayers Alliance, I.O.U.S.A: One Nation, Under Stress, in Debt and the UNESCO Institute for Statistics Database.
US Bureau of Labor Statistics: Consumer Price Index. $1000 in 1995 requires $1443.33 according to their inflation calculator, while $1000 in 1972 requires $5,262.30 in 2008.
November Madison School District Planned November, 2008 Referendum notes & links. Tax climate notes & links: When is a Tax Cut Really a Tax Hike by Gene Epstein, 20 Reasons to Kill Corporate Taxes by James Pethokoukis, I.O.U.S.A the Movie, the Economist: Inflation’s Last Hurrah and Dave Blaska on the proposed referendum.

Budget/Financing, Elections, Fund Raising, Governance/Board Decision Making, History - Madison Schools, School Climate

Beth Moss, Arlene Silveira & Lucy Mathiak on the Fall, 2008 Madison Schools’ Referendum

August 20, 2008 Jim Zellmer

But Silveira also said the 2005 referendum campaign suffered because the School Board itself was divided on it, “and it was a pretty split community speaking out on both sides in favor and being opposed.
“We are on the same page now. We’re really changing our focus to one of really spending more time on student achievement.”
For board member Lucy Mathiak, a key difference between Nerad’s proposal and past ones are the measures he has taken to cut costs already.

Board Meeting Archives, Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, History - Madison Schools, What Can I Do?

(Madison) School Referendum News

August 20, 2008 AdminsXss94m 1 Comment

I have appreciated having the opportunity to talk about our schools with you and value your insights, so I wanted to let you know where matters stand on the possibility of a school spending referendum on the November ballot
As you probably know, Superintendent Dan Nerad submitted his recommendations to the Board at a School Board meeting Monday night (1MB PDF, 3 year financial forecast PDF). In summary, the structural deficit the school funding law imposes on districts as well as increased fixed costs result in a projected budget deficit of $8.1 million for the 2009-2010 school year, $4.4 million for the 2010-2011 school year, and $4.3 million for the 2011-2012 school year, calculated on a same-service basis.
To meet these gaps, the superintendent recommends that the Board approve a referendum asking the voters to authorize the district to exceed our spending limits by $5 million next year, and $4 million in each of the following two years. This would be a recurring referendum, meaning that the authorization for the increased spending in the specified amounts would continue indefinitely.
The amount of extra spending authority we would seek is less than the projected budget gaps. The idea is that this a shared-sacrifice sort of proposal – we would be asking the community to permit us to erase some of the gap through additional taxes while we pledge to address the remainder through seeking out savings and efficiencies that will not have a detrimental impact on classroom learning. As is probably apparent, the referendum is not designed to allow us to restore in a significant way any of the painful cuts we have made in previous years.
Budget information for the district has historically been confusing. We’re working on greater clarity and transparency in our budget information. I have some questions about our numbers that I’m in the process of trying to get clarified. Part of the confusion derives from the fact that the budget is arranged in a number of separate funds that are defined by DPI. The principal category of spending for our purposes is Fund 10. For the upcoming school year, we are projecting Fund 10 expenditures of about $306 million. For the following year, the one that shows the $8.1 million shortfall, we foresee expenditures of about $318 million, or a 3.78% increase.
With the Qualified Economic Offer, salaries and benefits for teachers are, as a practical matter, required to go up at least 3.8% per year. Our total projected increase for next year for salary and benefits is 3.88%. The rest of the Fund 10 budget, a little under $100 million, increases 3.55% from this year. (By comparison, the consumer price index has increased 5.6% since July of 2007.) This budget does not include any significant new initiatives.
Turning to the revenues side of the ledger, the category of interest here is the tax levy. This is what our community has to cough up to pay for our schools, and it represents the difference between our expenditures and our other sources of revenue, including state and federal aid and grant money. The portion of the tax levy that is attributable to Fund 10 expense is governed by the spending cap that state law imposes.
The total tax levy for the current year is about $226 million. Under the superintendent’s plan, if the referendum passes, the total levy for next year would be $237 million, an increase of 5.07%.
If total expenditures are increasing less than 4%, why is the tax levy projected to increase 5.07%? There are a couple of reasons. First, we are unable to project that increases in other sources of funding will keep pace with our increasing level of expenditures. Indeed, we do not project any increase in state or federal aid. Second, the tax levy increase was moderated this year by the one-time injection of about $4.1 million in TIF funds. Had these funds not been received, then the tax levy would have had to increase this year (presumably through a referendum) in order to support this year’s level of spending. The 5.07% increase in the tax levy for next year is thus partially the result of starting from an artificially low base.
A final consideration is the mill rate. This is the amount applied against the assessed value of a taxpayer’s property to arrive at the amount in taxes that is levied. As the total value of property in our community increases, the mill rate goes down, all things equal. Under the superintendent’s plan, the mill rate increases from this year’s $9.92 to next year’s $10.03 (an increase of about 1%) and then is projected to decrease the next two years, to $9.59 and $9.29. So if one owns a house with an assessed value of $300,000, and the assessment remains the same next year, the amount that taxpayer would pay for schools would rise from $2,976 this year to $3,009 next year, and would decrease in the following two years if one is willing to entertain the unlikely assumption that the assessed value of the house would remain the same over the relevant years.
This analysis assumes that the referendum passes. If the referendum fails, then we will be obligated once more to hack away at the budget and attempt to find cuts that do the least amount of damage to classroom learning.
There are many reasons to want to avoid this. As past experience has shown, it is a divisive and painful exercise for the community. It requires that the Board devote much time and attention to the budget-cutting process – time that could be better used by the Board to work on strategies for improving student learning. Some of the decisions that have resulted from this typically-rushed process have later appeared to be short-sighted or misguided. And, most importantly, the cuts diminish the quality of the education we are able to provide to our students. There are no easy cuts left. If we are compelled to continue to slash away year after year, we will soon be at a point where we will be unable to provide the quality of education that our community wants and expects.
If the referendum passes, we will have breathing room. We should have three years when the specter of budget cuts is not hanging over our heads. This will enable the Board and the new administration to put into place the process we currently contemplate for reviewing our strategic priorities, establishing strategies and benchmarks, and aligning our resources.
Superintendent Nerad has described a proposal that contemplates a broad-based strategic planning process that will kick off during the second semester of the upcoming school year. This process will be designed to identify the community’s priorities for our schools, priorities that I expect will reflect a concentrated focus on enhancing student achievement. Once we have identified our priorities and promising strategies for achieving them, we’ll likely turn to examining how well our organization is aligned toward pursuing our goals. This will likely be the point at which we take a long, hard look at our administrative structure and see if we can arrange our resources more efficiently.
It will take a while – certainly more than a year – for us to undertake this sweeping kind of review of our programs and spending in a careful, collaborative and deliberative way. If we do go to referendum, and the voters authorize the increased spending authority we seek, then the obligation will pass to the Board and administration to demonstrate that the community’s vote of confidence was well placed. There will be much for us to do and it will be fair to judge our performance on how well we take advantage of the opportunity the community will have given us.
These are my initial thoughts. As you can probably tell, I am sympathetic to the approach the superintendent proposes and I am inclined to support his recommendation. However, we did just receive the recommendations Monday night, and I may well be confused about a few of these points. But since we will vote on a referendum next Monday, I wanted to get this summary to you as soon as possible. If you have thoughts or questions, I’d appreciate it if you could share them with me.
Ed
Ed Hughes
2226 Lakeland Avenue
Madison WI 53704
(608) 241-4854

Board Meeting Archives, Budget/Financing, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate

Referendum Discussion: Vicki McKenna & Don Severson

August 19, 2008 Jim Zellmer

Download or listen to this 15MB mp3 audio file.
Related:

$367M+ Budget notes and links
Don Severson’s memo to the Madison School Board on the current financial situation.
Marj Passman and Don Severson discuss school finance with Mitch Henck.
Madison Superintendent Dan Nerad’s budget and recommendations memorandum to the School board (1MB PDF):

In 1993, three pieces of legislation were enacted by the State of Wisconsin directly affecting school districts throughout the state. These pieces of legislation created revenue limits, created the state’s commitment to two·thirds funding, and created the qualified economic offer (QEO) in Wisconsin. Since 1993 revenue limits in Wisconsin have allowed the Madison Metropolitan School District to increase revenues annually by 2.2% on average. Conversely the QEO requires school boards to offer a comprehensive salary and benefit package to certified teaching staff of not less than 3.8% annually to avoid binding arbitration. Recognizing that the Madison Metropolitan School District’s budget is comprised of 84% salary and benefits, it must be recognized that while our revenues increase annually by 2.2%, the largest portion of our budget is mandated to minimally increase by 3.8%. Due to these competing pieces of legislation, the Board of Education since 1993 has reduced program and services by over $60 million to comply with state mandated revenue limits, of which $35 million has occurred within the past five years.
Since the 1992·93 School Year the Madison Metropolitan School District has increased the total tax levy by $74,944,431 through the projected 2008·09 property tax levy. This amounts to an average annual increase of 2.56% since the 1992·93 School Year (see Attachment A). During that same time frame from 1992·93 through the projections for the 2008·09 property tax rate, the Madison Metropolitan School District has decreased the total tax rate from $20.69 to a projected rate of $9.92 for the 2008·09 School Year (see Attachment B).

Nerad also posted a 3 year financial forecast (250K PDF)
City of Madison Assessor: 2008 Madison Property Tax base (PDF)
A look at the growth in Madison’s tax base: In 1990, the City of Madison included 40,069 parcels, a number that grew to 64,976 in 2005. Assessment and parcel growth mitigates tax levy increases, or allows it to decline (though this of course, depends on the real estate market along with tax policies).

Budget/Financing, Community Partners, Curriculum, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate

Don Severson & Marj Passman on School Spending & The Proposed November Madison School Referendum

August 19, 2008 Jim Zellmer

Chart via Global Education Spending data via UNESCO Institute for Statistics

Mitch Henck @ WIBA: 15MB mp3 audio file. Marj discussed her views on US taxes vis a vis education spending versus other countries.
Much more on the Madison School District’s $367M 2008-2009 budget along with the referendum.

Board Meeting Archives, Budget/Financing, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate

Madison Superintendent Recommends Three Year Recurring Spending Increase via a November, 2008 Referendum

August 19, 2008 Jim Zellmer

Nerad told school board members on Monday night that he’s recommending a three-year recurring referendum.
It’s part of what he called a partnership plan to address the budget shortfall.
The plan would put a referendum on the November ballot for $5 million and would ask voters for $4 million in the two following years.
Nerad said to make up the remaining $3 million gap the district would move $2 million from the district’s fund balance, eliminate $600,000 in unallocated staff, which are positions set aside in case of additional enrollment, and make up the remaining $400,000 through other reductions, which he has not yet named.
“We’re working both sides of this and in the end our kids need things from us, our taxpayers need us to be sensitive and all I can say is we tried every step of putting these recommendations together to be responsive on both fronts,” said Nerad.

The measure, a “recurring referendum,” would give the district permission to build on the previous year’s spending limit increase by additional amounts of $4 million in 2010-11 and another $4 million in 2011-12. The measure would permit a total increase of $13 million — a change that would be permanent, unlike the impact of some other referendums that end after a specified period.
Approval of the referendum would cost the owner of a home with an assessed value of $250,000 an estimated $27.50 in additional taxes in the 2009-10 school year. That represents an increase of 1.1 percent of the School District’s portion of the tax bill.
But for at least the next two years, the schools’ portion of that homeowner’s tax bill would decline even if the referendum is approved, under the plan developed by Nerad and Erik Kass, assistant superintendent for business services.
They estimate the tax bill for 2010-11 would be $27.50 lower than it is now, and the bill the following year would be about $100 below its current level if voters back the referendum and the School Board implements proposed changes in accounting measures.

In the first year, the referendum would add an additional $27.50 onto the tax bill of a $250,000 home. Another initiative in Nerad’s recommendation, drawn up along with Assistant Superintendent of Business Services Erik Kass, is to enact changes to help mitigate the tax impact of the referendum. Nerad and Kass said these changes would decrease taxes for homeowners in the second and third year of the referendum.
One aspect of the proposal would return $2 million of an equity to the taxpayers in the form of a reduced levy in the Community Services Fund (Fund 80) for the 2009-10 school year. The second part of the tax impact referendum would be implementation of a Capital Expansion Fund, called Fund 41, in an effort to levy a property tax under revenue limits to spread the costs of facility maintenance projects over a longer period.
Nerad said the referendum process has been a deliberative process, and he’s been cognizant of weighing board members and community questions.

Links:

Transcript: 7/28/2008 Madison School Board Referendum Discussion
Don Severson: Memo to the Madison School Board on the District’s Financial Situation
Capital Times Editorial advocating a November, 2008 referendum vote.
Madison Cast: Supporting a referendum
Wisconsin’s per student K-12 spending ranks 17th nationwide.

Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, History - Madison Schools, School Climate

Advocating a November 4, 2008 Madison School District Referendum

August 18, 2008 Jim Zellmer

Capital Times Editorial:

But even those who might oppose a referendum should be in favor of board action at this point.
If the board moves now, the referendum question can be on the Nov. 4 ballot.
Because the presidential race between Democrat Barack Obama and Republican John McCain is expected to draw a record voter turnout on that day, there could be no better point at which to assess the level of support for the school district in general and the current board’s strategies in particular.
Wisconsin has a great tradition of involving all taxpayers in the process of setting and supporting education priorities. We keep the decision-making process at the grass roots level. We elect school boards. We put major spending and building questions to the voters in the form of referendums. The system has worked well — even as state meddling in the structures of school financing has made things difficult. And it works best when referendums attract maximum participation.

Transcript & mp3 audio file: 7/28/2008 Madison School Refererendum Discussion.
Referendum climate.
Don Severson: Madison School District’s Financial Situation: Memo to the School Board & Administration.

Given the critical values briefly outlined above, it is premature at this time to make recommendations or decisions on a course or courses of action to seek more spending authority as a solution regarding the financial needs of the district. The groundwork for decision-making and the development of improved levels of public confidence in the Board and administration have to continue to be proactively matured for both short- and long-term successes in the district. We urge you to proceed carefully, firmly and in a strategic and progressive manner.

Board Meeting Archives, Budget/Financing, Community Partners, Curriculum, Elections, Events, Governance/Board Decision Making, History - Madison Schools, School Climate, What Can I Do?

Transcript: Madison School Board 7/28/2008 Referendum Discussion

August 17, 2008 Jim Zellmer

Meeting Transcript:

We begin the presentation by focusing on why is there a problem. And we wanna first and foremost point out that the issues affecting this school district are issues that are also occurring in other school districts in the state. While there may be some circumstances, and there are circumstances that are unique to one place or another, we know that this funding dilemma and the gap that exists between what the current state funding formula provides and how expenses are being dealt with in school district is not unique to this school district. Although we have our story here that is certainly unique. And again I want to emphasize that it really lies at the heart of it is the constraint between the current formula that was put into place in 1993 which basically asserted that the state provide more resources to schools through the two thirds funding if, in turn, school districts would control their costs in two ways. One was through the revenue cap and the second was through the qualified economic offer. And so that was the kind of exchange or the quid pro quo that was made at that time in public policy; to be able to provide more state funding for schools at the same time to place limitations on how much a school district could spend.
In the document we point out examples of this dilemma as it is affecting some of the top ten school districts in the state. Ranging in, for example Waukesha school district of 2.6 million dollar program and service reduction for the 08/09 school year. The district that I am most recently familiar with, Greenbay with a 6.5 million program and service reduction. And just to point out the difference we mentioned we seen there, we use a wording increase revenue authority that represents their gap but that’s also, its described that way because of having more authority through a successfully passed referendum to exceed the revenue cap within that community. So that is what’s meant by an increase revenue of authority.
Now the funding formula is one that school districts across the state are wrestling with. You know the history that this school district has had in terms of the types of decisions that have been made which we are going to underscore in just a minute to accommodate that funding formula but as I turn this over to Eric for the bulk of the rest of the presentation, I’ll conclude its all with the idea yes there is a need to have school funded but its around the assertion that our kids have to have a high quality education to be successful in the world that they are growing into. And yes we do have a fiscal responsibility to use community resources in the most cost effective manner and the reality of it is there are constraints in meeting that proposition. So with that, and I will return for the conclusion, I’ll turn it to Eric who will provide us with more detail of the nature of the problem.

$367,806,712 Budget notes and links
Referendum public forums
Madison receives a $5.5M grant to fund Teacher Training and Literacy Coordinators as part of the “Small Learning Community Initiative.

Board Meeting Archives, Budget/Financing, Elections, Events, Fund Raising, Governance/Board Decision Making, School Climate

Referendum or no referendum? First school forum draws dozens

August 13, 2008 Jim Zellmer

On Aug. 18 Nerad will present his recommendations to the board on whether a referendum is the way to trim an $8.2 million hole in the budget, and the board likely will vote Aug. 25 to formulate referendum questions for the Nov. 4 election. In addition, the gap is expected to be $6 million in the 2010-11 school year and $5.1 million in 2011-12.
Since a state-imposed revenue formula was implemented in 1993 to control property taxes, the district has cut $60 million in programs, staffing and services. The district did not have to make budget reductions during the 2008-09 school year after it benefited from a one-time, $5.7 million tax incremental financing district windfall from the city. The district will spend approximately $367.6 million during the 2008-09 school year, an increase of about 0.75 percent over the 2007-08 school year budget.

In addition to exploring reductions, Madison officials are researching how much it would cost to begin offering kindergarten to 4-year-olds in the district — a program offered by two-thirds of the school districts in Wisconsin.
Resident William Rowe, a retired educator, urged school officials to generate excitement by offering 4K, which research has shown can help improve academic achievement.
“I believe this is the time to go for it,” said Rowe, who proposed that a 4K referendum be offered separately from a referendum that would help avert budget cuts.
Don Severson, president of Active Citizens for Education, a district watchdog group, praised district officials for making the process so open to the public. However, he urged officials to provide more information about the costs and benefits of specific programs to help the public understand what’s working and what’s not. He predicted a referendum is “going to be very difficult to pass” but said he still hasn’t decided whether one is needed.

Much more on the budget here.

Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, School Climate

Referendum Climate: Stupid Budget Tricks

August 9, 2008 Jim Zellmer

Michael Granof:

STATE governments across the country are reeling from the effects of the current economic downturn. New York, facing a $26.2 billion deficit over the next three years, is particularly hard hit. Like most other states, it is looking to balance its budget mainly by cutting spending.
But if history is a guide, governors and legislators across the country will seek to avoid the difficult choices that are required. Instead, they will likely pass the costs of the services that we enjoy today on to our children and grandchildren, through creatively deceptive budgeting.
This is a time-honored practice. In 1991, the State of New York sold Attica prison to none other than itself. The buyer was a state agency that financed the $200 million purchase price by issuing bonds. The agency then leased the prison back to the state, with the lease payments being equal to the debt service on the bonds.
In substance, of course, the transaction was nothing more than a borrowing arrangement — the equivalent of borrowing $200 million from the buyers of the bonds. Nevertheless, the state booked the entire sale price as revenue for the year. The previous year, the state sold the Cross Westchester Expressway to the New York Thruway Authority — in other words, to itself.

Budget/Financing, Community Partners, Elections, Governance/Board Decision Making, School Climate

Referendum Climate: Wisconsin 9th in State / Local Tax “Burden”

August 8, 2008 Jim Zellmer

Gerald Prante @ Tax Foundation [340K PDF]:

For 18 consecutive years the Tax Foundation has published an estimate of the combined state-local tax burden shouldered by the residents of each of the 50 states. For each state, we calculate the total amount paid by the residents in taxes, and we divide those taxes by the total income in each state to compute a “tax burden” measure.
We make this calculation not only for the most recent year but also for earlier years because tax and income data are revised periodically by government agencies, and in our own methodology to take advantage of new datasets.
The goal is to focus not on the tax collectors but on the taxpayers. That is, we answer the question: What percentage of their income are the residents of this state paying in state and local taxes? We are not trying to answer the question: How much money have state and local governments collected?

Related: Milwaukee Journal-Sentinel Editorial on McCain & Obama’s deficit spending plans.

Budget/Financing, Community Partners, Curriculum, Elections, Events, Governance/Board Decision Making, History - Madison Schools, School Climate

Two Forums Set on a Potential Madison School Referendum

August 6, 2008 Jim Zellmer