Four years ago, when the Joint Finance Committee (JFC) proposed no improvements to the system of unfair revenue limits, AEF called it a “missed opportunity.” Schools across the state were stuck in an unfair system where some students were “valued” with very different revenues.
Two years ago, AEF applauded excellent progress! At that time, there was a substantially lower budget surplus than we now enjoy. The JFC proposed, and the Governor subsequently approved a $1000 per pupil increase in the low revenue amount! All schools got $325 more for each student in both years, and JFC included over $500M in general school aid to offset the costs. On average, where districts did not pass a referendum, local property tax levies went up an average of just 1%. AEF dropped plans for a lawsuit about the unconstitutional system of school funding because it appeared that JFC was on track.
But in the 25-27, with an even larger surplus, JFC proposes no closure in revenue limit gaps, revenue limits will go up equally for all districts by the same $325/year and there are zero dollars allocated to general school aid? We simply can’t explain this in any logical fashion. Here are some impacts:
- A $4.3B surplus will go largely unspent, property taxes rise and inflation outpaces revenues.
- JFC leadership cites the Governor’s 400-year veto as the cause of the tax increase, but it is equally true that taxes will rise because JFC is unwilling to allocate state aid.
- By the end of the biennium, children in one lucky school district will bring more than $25,000 in per pupil revenues, and 24 districts will get over $15,000/student, while 172 school districts continue to get the minimum of less than $12,000/student. This is obscene.
The WI Constitution states that the legislature shall provide for a system of school districts “as nearly uniform as practicable.” We have said it before: significant revenue gaps are unconstitutional. The government should not pick winners and losers in the state system of school funding. Continued delays to closing gaps could put us right back in the situation we were in 2 years ago before the JFC acted to close gaps so substantially: facing the possibility of a lengthy and dangerous legal battle over something the legislature can and should have fixed.
AEF was founded over 30 years ago on three core principles:
- Equitable funding, so revenues per student are reasonably consistent.
- Adequate funding, so districts have resources to meet the unique needs of students with disabilities and those who come from low-income homes.
- Taxpayer fairness, so school funding comes from a fair mix of local and state funding proportional to the property values in the school district.
The budget proposal put forth by the Governor substantially addressed each of these issues, while the JFC proposal does not. Their proposal:
- Perpetuates inequities in per pupil revenues;
- does not adequately meet the needs of students with disabilities, requiring massive transfers from the regular education classroom to cover underfunded special education costs;
- will require increases in local tax levies, especially challenging in districts where property value per student is low. This perpetuates the unfair property tax system.
Some legislators express a concern about a “structural deficit,” but there should be a middle ground. The JFC proposal leaves a record $4.3B budget surplus largely unspent. Those dollars come directly from taxpayers, including record numbers who have voted to pass school referendums and those for whom education funding is a top priority. Do we really need to tighten our belts that much? The legislature is so cautious that the proposal is to spend just 10% of the Governor’s budget proposal? This appears to be excessively conservative. Conservative groups call for spending not to exceed inflation, we call foul! We would have appreciated inflationary increases for the last 2 decades.
Finally, the budget proposal is likely to have a serious impact on smaller, rural districts that cannot absorb another financial hit. Rather than “starving out” small districts with all the harm that would do to their students, AEF has called on the legislature to address consolidation carefully, through study, incentives, and clear guidelines. Schools are the heart and soul of small communities across the state. The JFC proposal does nothing but hurt the students therein and their property taxpayers.
If the JFC budget proposal is passed in the legislature, it will be time for the Governor to make a tough call. If 2025 is truly “the year of the kid,” knowing how little the proposal does to address ongoing, understood, and substantial needs, maybe it’s time to call out those who would see continued unfair and uneven school funding, underfunded mandates, and increasing taxpayer burdens.
The Wisconsin Association for Equity in Funding (AEF) is a group of 72 school districts that collectively educate over 80,000 students. We have advocated for fairness in the school funding system for more than 3 decades. John Gaier is the Chair of AEF and Superintendent of the Neillsville School District.
