The Future of Rural Schools A Presentation By Senator Kathleen Vinehout

Education choices are about our future

Increasing Child Poverty Students Receiving Free and Reduced Lunch

State tax revenue is growing Source: Comparative Summary of Governor and JFC Budget Recommendations, table 7, Legislative Fiscal Bureau, June 2013; Legislative Fiscal Bureau Memo, March 2013; Legislative Fiscal Bureau letter to JFC Co-Chairs, May 2013

Where does money come from? Sources: State of WI Budget in Brief, February 2013; Preliminary General Fund Tax Collections August 2013 General Fund All Funds

Where does money go? *excludes bonding **Excludes property tax relief Sources: State of WI Budget in Brief, February 2013; Summary of Governor’s Budget Recommendations, Legislative Fiscal Bureau, March 2013 State Debt Related Memo, Legislative Fiscal Bureau, June 2013; Summary of General Fund Appropriations by Agency, August 2013.

Budgets are about Choices

Total Budgeted Spending: Health grows rapidly as education spending slows

Spending plan is up sharply increases by $10b over 4 budgets Sources: Comparative Summary of Governor and JFC Budget Recommendations, table 1, Legislative Fiscal Bureau, June 2013; Comparative Summary of Budget Recommendations — 2011 Act 32 (and 2011 Acts 10, 13, and 27) table 1, Legislative Fiscal Bureau, 2011; Comparative Summary of Budget Recommendations (2009 Act 28) table 1, Legislative Fiscal Bureau, 2009; Summary of Budget Provisions 2007 WI Act 20 table 1, Legislative Fiscal Bureau, 2007.

Several Big Increases in General Fund Spending Tax Rate Changes = $647.9 million New Ec. Dvpt tax credits = $75 million Medical Assistance = $850 million Marketing “In Wisconsin”=$10.9m 80 New Vehicles $1.7 million DNA collection at arrest = $11.6 m (inc $250 surcharge at arrest) New Private School Tuition Tax Break = $30 m New Money in Private School Vouchers = $78 m

Spending Increases, but so does Debt

New Borrowing increases $2 b New or expanded state buildings $233m Corrections expansion or improve $34m National Guard & Military Affairs $70m DNR HQ & park improvements $23m Transportation $998m World Dairy Expo $9m Maritime Museum $5m Family Justice Ctr, MKE $10m UW buildings & improvements $703m

Not paying debt bills is Kicking the Can Down the Road Debt Restructured by Legislative Session Source: Legislative Fiscal Bureau Memo, May 2012

WI Education Policy Has become a tangle of different types of schools all paid for with public dollars.

Big Increase in Private School & Independent Charter School Spending Source: DPI, April 2013

What are charters, vouchers & ‘choice’? Most don’t know

Changes in Education Budget Expand private school voucher program statewide with a cap of 500 students in the first year & 1,000 students in the 2 nd yr. 38.4% of private school dollars come from public school district; rest from state $78 million = New Tax $$ for Private Vouchers Raise K-8 private school payments to $7,210 (10%) Raise private high school payments to $7,856 (22%) Increase in dollars to public schools (yr 1=1.3%) Increase revenue limit to schools by $75 per pupil Provide a one-time aid increase of $75 per pupil Superintendents say they need $230 per student just to cover cost increases

Public School Spending Without private school vouchers and independent charter Schools Source: DPI, April 2013

It’s time to reconsider the path we are headed

Senator Vinehout’s Alternative Budget Choices & Priorities

Fund Public Schools including items requested by Dept of Public Instruction Governor Walker did not fund: Fair Funding for Schools High Cost Special Education Improving Graduation Rates Increase for Rural Schools (Sparsity) Bilingual-Bicultural Education Career & Technical Education Grants Science, Technology, Engineering and Math Education (STEM) SAGE increases Additional Library Assistance High Cost Transportation

Fix Fiscal Problems Eliminate Tax Rate Change & Create 2% Reserve Fund of $623 million Get rid of Structure Deficit Cut almost in half Generally Accepted Accounting Principles (GAAP) gap Remove Transportation Fund raid on General Fund Fix deficit in Children & Families programs (TANF)

Ended the budget years with $300 million surplus! What’s In?What’s Out? Set aside over $600 m in reserves Expand BadgerCare Change School Funding Restore ag, conservation, UW & courts cuts Invest in Mental Health, Drug court & addiction recovery Return $ to nursing homes Expand Family Care All policy unrelated to $$$ Private School tuition tax break 80 new vehicles Expanded private school vouchers Sale of state assets in no-bid contracts New & increased tax loopholes Changes in income tax rates

We Will Move Forward When we realize the ‘status quo’ is no longer an option. When we arm ourselves with the facts about our local schools. When we begin a community discussion about what we want for our schools. When we raise our voices together.

What do we want for Wisconsin’s future?

The Future of Rural Schools For Further Information Contact: Senator Kathleen Vinehout State Capitol P.O. Box 7882 Madison, Wisconsin (toll free)