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Meeting Date:
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7/29/2021 - 5:30 PM
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Category:
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Reports and Communications from the Board Clerk/Chief Officer, Office of Board Governance
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Type:
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Info
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Subject:
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4. Monthly Report, with Possible Action, on Legislative Activities Affecting MPS
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Strategic Plan Compatibility Statement:
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Goal 1 Academic Achievement Goal 2 Student, Family and Community Engagement Goal 3 Effective and Efficient Operations
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Attachments
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File Attachment:
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Background:
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The Legislature has completed its work on the budget, and, after a few minor modifications, made through the use of his veto powers, Governor Evers has signed it into law. The budget is historic in education-funding terms in that it provides minimal to negligible funding for schools. Statewide, public schools will receive only $112 million of spendable funding over the budget’s two-year period. The majority of that small amount will go toward special education and will be used to maintain a still historically low reimbursement rate of 28% in the first year of the biennium and an estimated 30% reimbursement rate in the second year. There is no guarantee, however, that the 30% mark will be met, as sufficient funds will not be allocated to ensure that stated percentage rate. At the school-district budgeting level, the changes to special education funding will likely simply keep up with costs in the first year and may slightly relieve some fiscal pressure in the second year.
Since 1993-94, when per-pupil revenue limits and, later, per-pupil categorical aids were created, there have only been two prior years when a per-pupil increase was not provided to students. During Governor Walker’s administration, per-pupil funding was reduced by 5.5% in 2011-12, and there was again no per-pupil increase in 2015-16. With the enactment of this budget, there will be no per-pupil increase of any kind in the 2021-22 and 2022-23 school years.
The per-pupil increase was originally tied to the increase in the rate of inflation in order to ensure that basic revenues kept pace with increasing costs. Without the basic increase, funding for schools will fall short relative to inflation. In essence, without the basic level of support and with costs outpacing revenues, many districts will likely be facing scenarios in which their budgets may have to be cut.
This lack of funding is all the more extraordinary, given the fact that the State is in a moment of unprecedented revenue growth. With the passage of the budget, the State funded a $2.3 billion income-tax cut; will have an estimated $1.5 billion of budget stabilization, or “rainy day,” funding available; and will have an available remaining balance of another $1 billion. The unallocated balance of over $1 billion is more than enough to fund a reimbursement rate for special education of 50%, the level requested by Governor Evers, and could also be used to provide a per-pupil increase of $200 in each year of the biennium.
At the federal level, Congress resumes work this month on infrastructure and developing the federal budget. Details on those activities will be provided as they become available.
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Fiscal Impact Statement:
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This item does not authorize expenditures.
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Implementation and Assessment Plan
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The District will continue to pursue appropriate support for students as part of the MPS Legislative Agenda.
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Recommendation:
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Approvals:
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Recommended By:
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Signed By:
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Chris Thiel - Legislative Policy Specialist
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Signed By:
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Jacqueline M. Mann, Ph.D. - Board Clerk/Chief Officer
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