Dept of Admin June 21 Memo on per-student revenue

http://www.thewheelerreport.com/releases/June05/June22/0622doaschools.PDF
Date: June 21, 2005
To: Marc Marotta
Secretary
From: David Schmiedicke
State Budget Director
Subject: School District Revenue Limits — REVISED
We have received a number of inquiries regarding the impact of the reduction to the allowable per pupil revenue limit increase made by the Joint Committee on Finance (JCF’) in its version of the 2005-07 biennial budget bill (AB 100). As you know, Governor Doyle’s budget recommendations retained the current law allowable increase, which is last year’s allowable increase plus increase in the consumer price
index.
Under current law, the increases are estimated to be $248.48 per pupil in FY2005-06 and $252 in FY2006-07. The JCF version of the budget reduces those increases to $120 per pupil in FY06 and $100 in FY2006-07. For the biennium, this represents a reduction of an estimated $352 million in school district revenues compared to current
law.
On a percentage basis, current law and the Governor’s proposal would provide the average district with per pupil revenue increases of approximately 2.9% in each year (over the state average base revenue per pupil of $8,415 for FY05). Under the JCF version of the budget, the allowable increase would be reduced to 1.4% in FY06 and 1.2% in FY07.
The net increase in school district revenue limits after the JCF reductions to current law can also be compared with the increase in the all-funds state budget adopted by JCF. Compared with the fiscal year 2004-05 base of $24.9 billion, the JCF budget increases all funds spending over the prior year by 5.0% in fiscal year 2005-06 and 2.4% in fiscal year 2006-07. The increase to general fund spending in the JCF budget over the fiscal year 2004-05 base of $12.0 billion is 7.7% in fiscal year 2005-06 and 2.6% in fiscal year 2006-07 over the prior year.