More Schools Choosing Deeper Cuts Over Tax Increases (WI)
December 20, 2010
The number of school districts absorbing deeper-than-required spending cuts jumped for the second year in a row, suggesting a growing attitude change towards spending limits in the midst of financial turmoil.
The state of Wisconsin caps how much revenue districts can generate, and educators have routinely criticized the limits for not keeping pace with rising costs.
But more than one in four districts – including Oshkosh and several others in the area – chose to tax below their caps this year despite the budget squeeze. The Wisconsin Taxpayers Alliance, an independent research group, reports that 120 out of 425 school districts did not tax to their revenue limit in 2010-11.
That practice started to accelerate last school year when the state cut its share of school funding for the first time ever. Loc al property taxpayers were left to decide whether to make up the difference, and 98 districts in 2009-10 chose not to maximize their tax levies in order to shield homeowners from double-digit increases during an economic recession.
"It’s a tough balancing act, and you can’t really win either way. Unfortunately, that’s were our state economy is at right now," said Nick Curran, business director for Omro schools, which cut $100,000 and still raised its tax levy almost 8 percent in order to balance its budget.
Schools’ financial woes are gaining political attention. State Superintendent Tony Evers last month revealed a plan to change how state aids are distributed to districts, including a bump in funding.
Republican lawmakers who now control the state legislature applauded Evers for bringing the issue forward but suggested reform will have to take place without adding any new state dollars while they deal with their own multi-billion dollar deficit.
State aid dropped this year for all but three of 11 districts in the Oshkosh and Fox Valley area, putting more pressure on homeowners. Property taxes were raised an average of 5.6 percent in those districts, with most of that money covering the loss of state dollars rather than paying for climbing costs. Total budgets only increased an average of 2.5 percent.
Local taxes could have been even higher, but six of the 11 districts surveyed by The Northwestern chose not to raise taxes as high as they’re allowed.
The districts turned down a combined $4.7 million in potential revenue despite enduring one of their most stressful school budgeting seasons. Teacher layoffs and program cuts prompted local protests along with federal action in the form of a stimulus bill – penned by a Wisconsin congressman – that poured hundreds of millions of dollars into districts to fund educators’ jobs.
Gannett Wisconsin newspapers reported last summer that Fox Valley school districts laid off around 100 teachers for this school year. Oshkosh schools alone let go 31 teachers and several paraprofessionals. Many of those teachers were ultimately rehired as other staff resigned or retired, but the dollar reductions remain.
Oshkosh schools turned down the most property tax dollars in the region amounting to $2.1 million, or 4.9 percent of the allowed limit. Other districts turned down an average of 2.2 percent of their allowed limits.
Still, Oshkosh budgeted for one of the largest spending bumps.
Business Director Bob Tess says the 4 percent spending increase covers a rise in operational costs, such as health insurance, while also helping the district catch up on neglected technology and professional development needs.
That brings the district’s per-student cost to $12,143, which is still below regional average of $13,983.
Other districts opted to maximize their revenue even though it meant a double-digit tax hike.
Winneconne school district lost 11.5 percent of its state aid this year, and consequently, the property tax levy raised about the same amount. The district also took additional cost cutting measures, including closing the Winchester Elementary School.
"It is a challenge for us. We’re making cuts and yet the property tax-payers are still feeling an increase because of the drop in state aid," said the district’s business director, Karen Moore.
� A;She said the district could have made deeper cuts to prevent the tax hike, but "we still have to try and protect the quality of our educational programming and services. We have to try and balance those two things (cuts and taxes)."