K-12 Tax & Spending Climate: Redistributed Federal taxpayer funds and Wisconsin Schools

Kyle Koenen & Libby Sobic:

The state has already received $2.0 billion in stimulus funding under the federal CARES Act and is expected to receive billions more in the latest round of stimulus. While the Department of Administration has developed a dashboard displaying CARES Act funding allocations, this tool fails to keep the public adequately informed on how and when this money has actually been spent. Having greater legislative input can also help ensure that these funds are spent in a manner that does not create long-term, ongoing fiscal obligations to the state.

In 2009, legislative Democrats recognized the importance of having both the legislative and executive branches involved in the allocation of federal stimulus funds by passing similar legislation that required Joint Finance oversight.

A prime example for why AB 149 is a necessary proposal today is the delay of the Governor’s Emergency Education Relief (GEER) funds by Governor Evers in 2020.

The first allocation of federal funding to Governor Evers was a result of the CARES Act, which included the Governor’s Emergency Education Relief (GEER) fund. Governor Evers received over $46 million in GEER funds that could be allocated to institutions of higher education, K-12 public schools, and other education-related entities.1

Unfortunately, these funds were delayed in getting to Wisconsin schools. Other governors worked quicky to complete the necessary paperwork to the U.S. Department of Education to receive the grant of these funds, while Governor Evers submitted his paperwork in late May 20202. Many other states, including Alaska, California, Louisiana, Maine, Michigan, and Oklahoma, completed the process weeks, if not a month, before Governor Evers.3

Even after the paperwork was submitted, the GEER funds were furthered delayed by the Governor. Governor Evers didn’t announce the allocation of these federal funds until June 17, 20204. Then, after the Governor’s announcement of the funds, the GEER applications were not available to local districts until October 2020.5 Ultimately, this was a delay of nearly five months for much needed federal dollars

Additional Federal Taxpayer (and borrowed Funds) for the Madison School District.

Matt Barnum:

Districts must use at least 20% of their money to address learning loss. Other than that, schools will have broad latitude to use the money for anything from buying masks to keeping teachers employed to setting up an after-school program.

In another boon to public schools, states and cities will get $350 billion to fill their own budget gaps. Education advocates see this as critical, since states provide a substantial share of schools’ funding.

All this money, in addition to the relief packages passed last year, means that most schools are unlikely to face imminent budget cuts, which were a distinct possibility when the pandemic hit and the economy cratered.

“That’s really a testament to the power of federal support,” said Zahava Stadler, who works on school funding issues for Education Trust, which advocates for federal aid. “We really need to be thankful for the breathing room that this federal aid has provided.”