Governor Signs State Budget

Saying it "makes an historic investment in education," Governor Doyle signed the 2007-09 state budget last week Friday in a ceremony at the University of Wisconsin-Madison. One of the few vetoes he issued eliminates a provision that would have placed levy limits on technical colleges.

"The budget meets Wisconsin’s commitment to fund two-thirds the cost of every child’s education – protecting schools while taking the burden off of property taxpayers," Doyle said at the ceremony. "It makes sure kids get off to the right start, by investing $3 million in 4-year-old kindergarten, $3.2 million in school breakfast, and $27 million to create smaller class sizes in the early grades."

Doyle also noted the budget moves forward on the Wisconsin Covenant – "a promise to 8th graders that if they work hard, maintain a B average, and take the classes they need to go to college, there will be a spot for them in the state’s universities or colleges."

“In this budget we will invest in the God-given potential of every child in this state by expanding 4-year-old kindergarten, increasing school breakfasts, making class sizes smaller, and creating a Department of Children and Families that is focused on the needs and health of our future generations,” Doyle said.

Both houses of the Legislature passed the budget October 23. The vote was 60-39 in the Assembly and 18-15 in the Senate. MTEA and WEAC supported the budget.

“We are pleased that the budget is complete, thanks to Governor Doyle’s leadership in the final stages of the process,” says MTEA President Dennis Oulahan. “Although the budget does not meet all of our needs in Milwaukee Public Schools, it is a good start to providing what our students need to succeed.  We are especially relieved that $10 million to improve math and science instruction in MPS survived the deliberations, as well as the additional poverty aide – an overdue recognition that our students face challenges that impact their learning.”

The budget provides:

K-12

• Provides $76.8 million in general school aids in 2008-09.
• Adds $53.6 million to special education categorical aid, which would represent increases of 5.2% in 2007-08 and 5.4% in 2008-09. In addition, provides $1.8 million in supplemental special education aid.
• Increases the annual reimbursement rate for pupils transported over 12 miles from home and school from $180 to $220 beginning in 2007-08.
• Provides $3.3 million over the biennium to increase the school breakfast reimbursement rate from 10 cents to 15 cents per breakfast served.
• Makes no changes to the current-law inflationary adjustment to the per-pupil adjustment, resulting in a per-pupil adjustment of $264 in 2007-08 and $270 in 2008-09.
• Increases the low-revenue ceiling from $8,400 to $8,700 in 2007-08 and to $9,000 in 2008-09.
• Provides for 100% hold harmless for declining enrollment school districts and allows the prior year’s base to serve as a revenue limit floor.
• Provides $21 million over the biennium in a new aid program to high-poverty school districts. The aid to Milwaukee Public Schools would be used to ease the property tax burden for picking up 45% of cost of the Milwaukee private school voucher program.
• Invests $10 million in 2008-09 to boost student achievement in math and science in Milwaukee Public Schools.
• Provides $3 million for 4-year-old kindergarten start-up grants.
• Expands the national teacher certification program to provide grants to master educator licensees and award higher grants to those board certified teachers and master educators who teach in high-poverty schools.
• Provides $3.6 million in 2008-09 in aid to small rural schools districts.
• Provides $27 million to fully fund the state’s commitment to increase the SAGE per-pupil amount from $2,000 to $2,250.
• Provides $500,000 over the biennium for grants to school districts for nursing services.
• Increases funding for gifted and talented by $182,000 over the biennium.
• Provides $123,000 over the biennium for grants to promote education in science, technology, engineering and math.
• Provides $76,000 over the biennium for international education activities.
• Creates an Office of the Wisconsin Covenant and associated positions.
• Provides $500,000 for Project Lead the Way.
• Increases the current school levy tax credit distribution for the 2007(08) property tax year by $79,350,000. Increases the distribution for the 2008(09) property tax year by a further $75,000,000. Creates a property tax credit called the “first dollar credit” with a funding level of $75,000,000 annually beginning in the 2008(09) property tax year, and modifies the existing school levy tax credit appropriation to include payments for the first dollar credit.

WTCS

• Provides $3 million over the biennium for the Workforce Training Grant Program.
• Provides $1.25 million over the biennium to increase funding for the Wisconsin Higher Education Grant program for need-based financial aid to technical college students.
• Provides $12 million over the biennium to help defray the cost of the new veteran’s remission by the UW Board of Regents and the Wisconsin Technical College District Boards.
• Requires a lapse of $1 million of existing WTCS general and/or categorical aid funding in each of the 2007-09 and 2009-11 biennia.
• Prohibits any technical college district from increasing its tax levy by more than 4% annually in 2007 and 2008. Repeals this provision on November 30, 2009. (This provision was vetoed by the governor.)

Compensation Reserves

• Provides total compensation reserves of $131,197,500 in 2007-08 and $328,026,800 in 2008-09 for the increased cost of state employee salaries and fringe benefits.

Miscellaneous

• Implements BadgerCare Plus to help ensure that 98% of Wisconsin's citizens have access to health care coverage.

According to the governor's office, the agreement ensures quality education for Wisconsin students. The governor's office said the bill:

• Meets Wisconsin’s commitment to fund two-thirds the cost of every child’s education … protecting schools while taking the burden off of property taxpayers.
• Moves forward on the Wisconsin Covenant – the promise to 8th graders that if they work hard, maintain a B average, and take the classes they need to go to college, there will be a spot for them in the state’s universities or colleges.
• Makes sure kids get off to the right start, by investing $3 million in 4-year-old kindergarten, $3.2 million in school breakfast, and $27 million to create smaller class sizes in the early grades.
• Includes reforms in the school financing system that help rural districts with transportation costs, and treat districts with declining enrollment more fairly.
• Invests $32 million in financial aid so talented students who have earned their way into our states universities have the resources they need to help them succeed. The funding puts the state on pace to triple financial aid by the end of this fiscal term.
• Keeps a promise to provide free college tuition to all Wisconsin veterans by investing $12 million.
• Fully funds the University’s Growth Agenda to expand enrollment and train the next generation of nurses, engineers, chemists, biologists and skilled workers that our economy needs.

WEAC Resource Page on the 2007-09 State Budget