1. IMPACT OF STATE BUDGET PROPOSAL ON PUBLIC SCHOOLS

2. BACKGROUND & CONTEXT

3. Most Kids Attend Public School… Overall Enrollment (2013-14) Public Schools: 875,000 Private Schools: 120,000 Source: Department of Public Instruction. Public School Enrollment Data http://lbstat.dpi.wi.gov/lbstat_pubdata3 Private School Enrollment Data http://lbstat.dpi.wi.gov/lbstat_privdatahttp://lbstat.dpi.wi.gov/lbstat_pubdata3 http://lbstat.dpi.wi.gov/lbstat_privdata

4. Out of 425 school districts in Wisconsin, approximately 2/3 are rural Rural districts cover an average of 170 square miles, which is 50% more than non-rural districts Rural districts have an average of 650 students or less than 5 students per square mile 36 districts have less than 2 students per square mile 96% of districts with less than 1,000 students are rural

5. Poverty is Growing in WI… Change in Free & Reduced Lunch (2001-2012) Source: Wisconsin Department of Public Instruction. School Finance Maps. http://dpi.wi.gov/sfs/maps.htmlhttp://dpi.wi.gov/sfs/maps.html In many rural districts, more than half the students are eligible for free-and- reduced lunch. Wisconsin FRL Rate Doubles 2001: 21% 2012: 43%

6. And so are the # of Homeless Kids… Source: Wisconsin Department of Public Instruction. Homeless Children and Youth data: http://homeless.dpi.wi.gov/hmls_datahttp://homeless.dpi.wi.gov/hmls_data Half of Wisconsin’s homeless kids can be found in just 10 school districts.

7. And Poverty Impacts Achievement (2012-13 Report Card Data) There is a very strong correlation between poverty and school performance. Avg. FRL HIGH-poverty, LOW-performing schools LOW-poverty, HIGH-performing schools Source: Wisconsin Department of Public Instruction. School and District Report Cards http://reportcards.dpi.wi.gov/http://reportcards.dpi.wi.gov/

8. Students are in Fewer Districts Change Student Membership (2001-2012) In 2001, 1/3 rd of districts were in declining enrollment. By 2012, over 2/3rds districts were in declining enrollment. Today, 75% of our students are located in just 30% of our districts. Wisconsin FRL Rate Doubles 2001: 21% 2012: 43% Cumulative EnrollmentPercentile # of Districts % of Districts 209,53525%82% 419,38750%4111% 626,83475%11430% 871,551100%424100% Source: Wisconsin Department of Public Instruction. School Finance Maps. http://dpi.wi.gov/sfs/maps.htmlhttp://dpi.wi.gov/sfs/maps.html District Enrollment% of Districts Under 1,00055% Under 3,00083% Under 10,00098%

9. Which Means Rural Districts Have Fewer Kids & Greater Poverty Wisconsin FRL Rate Doubles 2001: 21% 2012: 43% Source: Wisconsin Department of Public Instruction. School Finance Maps. http://dpi.wi.gov/sfs/maps.htmlhttp://dpi.wi.gov/sfs/maps.html

10. SCHOOL FINANCE

11. The share of the state budget spent on K-12 is at a 20-year low Source: Legislative Fiscal Bureau As programs like Medicaid consume a larger share of the state budget, K-12’s share declines (even as the state invests new money)

12. During the Great Recession, Revenue Limits Were Cut … Source: Department of Public Instruction. 2011-13 State Budget. http://pb.dpi.wi.gov/pb_11-13_budget 2013-15 State Budget. http://news.dpi.wi.gov/news_2013-15-state-budget-informationhttp://pb.dpi.wi.gov/pb_11-13_budgethttp://news.dpi.wi.gov/news_2013-15-state-budget-information

13. Which has Resulted in Significant Staff Reductions Wisconsin schools cut more than 3,000 educators during the Great Recession. Source: Department of Public Instruction. 2011-13 State Budget. http://pb.dpi.wi.gov/pb_11-13_budget 2013-15 State Budget. http://news.dpi.wi.gov/news_2013-15-state-budget-informationhttp://pb.dpi.wi.gov/pb_11-13_budgethttp://news.dpi.wi.gov/news_2013-15-state-budget-information

14. 2015-17 BUDGET PROPOSAL

15. As you all know … Governor’s Proposal: 1. Revenue Limit Adjustments: $0 in FY16 and FY17 No additional revenue authority, other than exemptions (e.g., referendum) 2. General/Equalization Aid: $0 in FY16, $108 M in FY17 State General Aid reduces Levy – not “new money” 2015-17 Budget Proposal – Revenue Limits & General Aid Revenue Limits State General Aid Property Tax Levy

16. 2015-17 Budget Proposal – Per Pupil Aid Per Pupil Aid – Governor’s Proposal $0 in Per Pupil Aid in FY16 – this is a reduction to districts’ spending capacity of $150 per pupil ~$165 in Per Pupil Aid in FY17 HOWEVER: –No longer a sum-sufficient appropriation (amount per pupil = total appropriation divided by statewide membership) –Provided on a one-time basis in FY17

17. State Support for Public Schools Source: Department of Public Instruction. 2011-13 State Budget. http://pb.dpi.wi.gov/pb_11-13_budget 2013-15 State Budget. http://news.dpi.wi.gov/news_2013-15-state-budget-informationhttp://pb.dpi.wi.gov/pb_11-13_budgethttp://news.dpi.wi.gov/news_2013-15-state-budget-information

18. 2015-17 Budget Proposal – Tax Credits Governor’s Proposal – School Levy Tax Credit Increases allocation by $105.6 million in FY16 & FY17 (e.g., for tax bills going out in Dec 2015 & Dec 2016) The SLTC reduces property taxes – it is not additional revenue beyond a school district’s revenue limit The SLTC is distributed based on a municipalities share of the statewide school levy – not equalizing

19. 2015-17 Budget Proposal – Categorical Aids The Governor’s Proposal includes the following increases requested by the State Superintendent: Sparsity Aid: –Eliminate FRPL eligibility criterion & fully fund at $300 per member (currently $236 for districts under 650 enrollment with less than 10 students per sq. mile) Transportation Aid –Raised reimbursement rate for 12+ miles category from $275 to $300 High Cost Transportation Aid –Increase funding to provide reimbursements at ~50% of costs above 150% of statewide average

20. 2015-17 Budget Proposal – Categorical Aids cont. Governor’s Proposal – freezes special education, Bilingual, SAGE, school breakfast, Gifted & Talented, STEM grants The Governor’s Proposal eliminates funding for a few existing categorical aid programs: –Career & Technical Education Incentive Grants (transferred $3 million annually to DWD, Wisconsin Fast Forward Program) –Environmental Education Grants

21. IMPACT ON RURAL SCHOOLS

22. In rural school districts, the lack of economies of scale, sparsity and fixed costs (insurance, utilities) prevents districts from proportionately reducing costs to match flat or declining revenue limits Most rural districts have had no choice but to either cut deeply into student opportunities (foreign language, AP classes, career & technical education, art, music, library, guidance, reading specialist, etc.) or pass a referendum to exceed the revenue limit Challenges for Rural Schools

23. Recent years have taken a toll on administrative services, support services, building maintenance and technology infrastructure in rural districts Teacher/administrator recruitment and retention is an emerging issue for rural schools –Increased part-time positions leads to greater turnover –Since 2010, there has been a significant decrease in under-graduates enrolled in teacher training programs –85% of education graduates in 2009 planned to teach until retirement compared to 39% of education graduates in 2013 –Salary disparity between rural and non-rural school districts is significantly increasing Challenges for Rural Schools

24. High transportation costs in rural districts diverts money from classroom instruction –75 rural districts with less than 3.6 students per square mile exceeds the average transportation costs for all remaining districts by 50% or $225,000 for a district of 750 students 200 school districts have fewer than 8 students per square mile, 100 less than 4 students per square mile and 36 less than 2 students per square mile Challenges for Rural Schools

25. Sparsity and geography results in many rural school districts spending more than $800 per student in transportation costs State transportation aids (including new $) cover less than 10% of the total costs As a result, rural school districts have less revenue per student to put into the classroom Challenges for Rural Schools

26. Less support for special education from both the state and federal government has reduced the resources available for regular school programs for all students Lack of adequate bandwidth prevents many rural communities from growing and attracting business and rural schools from taking advantage of effective application of technology –More than 30% of the state’s rural population does not receive high- speed Internet service –Technology infrastructure in most rural schools needs to be updated Challenges for Rural Schools

27. There have been over 1,000 referenda to exceed the revenue limit over the past 15 years –Some are to fund additional costs of operating new schools, technology expansion or facility upgrades –Most are to maintain existing programs Over 80% of referenda to exceed revenue limits to maintain existing programs are held in rural school districts Many rural school districts have become referendum dependent in order to exist Challenges for Rural Schools

28. HOW CAN WE JUSTIFY STATEWIDE CUTS TO K-12 AND EXPANDING PRIVATE SCHOOL VOUCHERS AND INDEPENDENT CHARTERS AT THE FURTHER EXPENSE OF RURAL SCHOOLS AND COMMUNITIES??? The Key Question

29. Jerry Fiene, WiRSA Executive Director jerryfiene@wirsa.org Strong Schools, Strong Communities www.wirsa.org