The Future of Rural Schools

1. The Future of Rural Schools A Presentation By Senator Kathleen Vinehout

2. Education choices areabout our future

3. Increasing Child PovertyStudents Receiving Free and Reduced Lunch

4. 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

5. Where does money come from? All Funds General Fund Sources: State of WI Budget in Brief, February 2013; Preliminary 2012-13 General Fund Tax Collections August 2013

6. Where does money go? **Excludes property tax relief *excludes bonding 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.

7. Budgets are about Choices

8. Total Budgeted Spending: Health grows rapidly as education spending slows

9. Spending plan is up sharplyincreases by $10b over 4 budgets Sources: Comparative Summary of Governorand 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.

10. 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

11. Spending Increases, but so does Debt

12. New Borrowing increases $2b • 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

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

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

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

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

17. 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 2nd 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

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

19. It’s time to reconsider the path we are headed

20. Senator Vinehout’sAlternative Budget 2013-2015 Choices & Priorities

21. 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

22. 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)

23. What’s Out? Ended the budget years with $300 million surplus! What’s In? 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

24. 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.

25. What do we want for Wisconsin’s future?

26. The Future of Rural Schools For Further Information Contact: Senator Kathleen Vinehout State Capitol P.O. Box 7882 Madison, Wisconsin 53707-7882 Sen.vinehout@legis.wisconsin.gov www.legis.wi.gov/senate/sen31/news 877-763-6636 (toll free)