School Funding Discussion

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WELCOME
School Funding Discussion
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This document has been produced by a group of
concerned citizens and is not sponsored by a
board of education, school administration,
teachers association, or political action group.
Information has been gathered from sources that
are believed to be in the public domain and are
only as accurate as the sources themselves.
Omissions and mistakes are possible and will be
corrected as they are identified. Please e-mail
questions, comments, or corrections
to MarkesanQuestions_at_HotMail.com
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Communities in the Markesan School District
Green Lake
Fairwater
Marquette
Markesan
Kingston
Manchester
Dalton
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17 Municipalities (City, Villages, Townships) in
the Markesan School District
Metomen
Princeton
Green Lake
Montello
Marquette
Fairwater
Marquette
Markesan
Buffalo
Kingston
Kingston (Dalton)
Manchester
Alto
Mackford
Marcellon
Fox Lake
Scott
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Markesan School Board
Our friends and neighbors
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Markesan School Board
Our friends and neighbors
What shall we do next?
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Lets take a close look at
School Funding Issues
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When citizens learn that the school district is
having financial problems
They are going to ask
WHY?
Write to MarkesanQuestions_at_HotMail.com
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It is natural for people to have opinions and
questions
I have an idea!
I wonder if..
Why dont we
People see things differently
I think
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Do you see a young lady looking over her right
shoulder?
Or do you see an old lady with a scarf over her
head? Her large nose is the chin of the young
lady. Her eye is the left ear of the young lady.
Her mouth is the young ladys necklace
People may not see what you see.
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I LOVE PARIS IN THE THE SPRINGTIME
Sometimes, people read less than what is written.
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Sometimes, people things that arent really there
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Is the line from A to B longer than the line from
B to C?
I I I I 1 I I I I 2 I I I I 3 I I I I 4 I I I I 5
I I I I
I I I I 1 I I I I 2 I I I I 3 I I I I 4 I I I I 5
I I I I
Sometimes, things appear unequal or unfair
until they are measured or explained
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Sometimes, things look crooked
When distractions are removed things often get
straightened out
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Sometimes, things appear distorted
Proper perception can make things look right
16
What looks good on paper may not work in reality
But people will build on misconceptions and
develop new ideas that just cannot work
17
When it comes to opinions and misunderstandings
RESPECT

CORRECT
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That was a dumb thing to do? They should have
Why dont they
Respect opinions
Yes, that may be, but actually.
Correct errors
I understand your position but have you
considered
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How do we pay for our schools?
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MONEY State Aid
Fees other
Federal Money
Grants
Gifts
School Budget
Admin.
Buildings
Fuel
Supplies
Teachers
Utilities
Special Ed
Bussing
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State Aid
Determined by the school districts ability to
pay for education.
Ability to pay does not consider income of
residents of the school district
Wisconsin determines Ability to pay for education
by counting the students in the school and adding
up the value of all of the property (real estate
and personal property) in the school
district. The relationship or ratio between the
value of the property and the number of students
the school is teaching determines the school
districts ability to pay for educating the
children.

Value of property divided by the number of
students
Ability to pay for education
Property value Number of students
Ability to pay
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State Aid
Property value Number of students
Ability to pay for education
Property value Number of students
State Aid
or
Property value Number of students
- - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - -
- - - - - - - -
Property value Number of students
State Aid
or
Property value Number of students
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State Aid
Property value Number of students
Ability to pay for education
Property value Number of students
State Aid
The State of Wisconsin feels that when there is
more property value and fewer children in a
public school, the district needs less money
from the state to educate children.
This is currently the trend in the Markesan
School District.
From 1996 to 2006, student numbers dropped by 341
and property value went up 265,058,247. Student
numbers declined by one third and equalized value
more than doubled.
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Property Tax
State Aid
Fees other
Federal Money
Grants
Gifts
School Budget
Admin.
Buildings
Fuel
Supplies
Teachers
Utilities
Special Ed
Bussing
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Property Tax
Fees other
State Aid
Federal Money
Grants
Gifts
School Budget
Admin.
Buildings
Fuel
Supplies
Teachers
Utilities
Special Ed
Bussing
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Property Tax
State Aid
Fees other
Federal Money
Grants
Revenue Limit
Gifts
School Budget
Admin.
Buildings
Fuel
Supplies
Teachers
Utilities
Special Ed
Bussing
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What is a Revenue Limit?

• The amount of money that can be collected for the
  school budget that comes from property tax and
  state aid
• The limit is set by the state using a formula
  based on past spending of the school, starting in
  1993
• Schools that were thrifty in 1993 cannot keep up
  with increasing costs without cutting major
  programs
• Schools with lavish budgets in 1993 have been
  able stay under their revenue limit by cutting
  luxury programs Markesan never had

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Property Tax
State Aid
Fees other
Federal Money
Grants
A survey by the Institute for Wisconsins Future
revealed an estimate of budget cuts necessary for
schools to stay within the revenue limits from
year to year
1993 Revenue Limit
Gifts
Limits increase 2.5 per year
Budgets are cut 1.7 per year
School Budget
Admin.
Buildings
Fixed costs increase 4.2 per year
Fuel
Supplies
Teachers
Utilities
Special Ed
Bussing
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In a survey of 129 schools conducted by the
Institute for Wisconsin Future, the median growth
in budgets allowed by revenue limits was 2.5
while the median growth in cost of
continuing programs was 4.2
For every 1,000,000 of school budget, the
difference between what the state allows a school
to get in funding and what the school must spend
simply to maintain programs is almost 100,000
in just 5 years.
Almost 100,000 of cuts needed in just 5
years just to stay within the State Revenue Limit
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Property Tax
State Aid
Fees other
Federal Money
Grants
Revenue Limit
Gifts
School Budget
Buildings
Admin.
Utilities
To stay within the revenue limit, Markesan has
cut programs that affect the fewest number of
students, yet may be very important to some
individuals
Special Ed
Supplies
Teachers
Fuel
Bussing
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Cuts due to declining revenue limits
See next slide
This blue line reflects increases in costs for
insurance, gas, bussing, heating, electric,
salaries, and other prices which are difficult to
control.
311,000 cut
Total of cuts made
338,000 cut in spending
Millions of Dollars
238,000 cut in spending
200,000 cut in spending
?12,000
?50,000
?114,000
Revenue Limit
?109,000
?49,000
School Years
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Cuts due to declining revenue limits
124,000 cut
451,000
327,000 of savings used to support current
programs
In 2005-2006, we needed to cut 451,000 from the
budget
but we could only find 124,000 of reasonable cuts
so the difference (327,000) was taken from the
district savings account (fund balance)
Millions of Dollars
?12,000
?50,000
?114,000
Revenue Limit
?109,000
?49,000
School Years
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More than 1.2 million dollars cut since 2000
Millions of Dollars
?12,000
?50,000
?114,000
?109,000
?451,000
School Years
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Allow revenue limit to increase?
Continue cuts in spending?
Projected increase in costs
Millions of Dollars
Projected decrease in revenue limit
School Years
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2004-2005 Enrollment
Princeton
Green Lake
Ripon
354
1694
444
Source DPI Membership count
Rosendale-Brandon
Montello
MARKESAN
1022
837
855
Pardeeville
926
Waupun
Randolph
Cambria-Friesland
547
2284
486
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Enrollment Projection
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The largest expense of the school budget is
salaries and benefits
If more cuts are made, it will be important to
understand how the school pays employees.
Markesan (Fund 10) Budget Expenses
Non-payroll expenses
Salaries 46
Benefits 22
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A teacher with a salary of 40,000 costs the
school 47,976 to 63, 476
Teacher whose spouse has benefits already 47,976
Teacher with single benefits 54,176.00
Teacher with Family benefits 63,476.00
ZERO
ZERO
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A teacher with a salary of 40,000 costs the
school 47,976 to 63, 476
Salary
Health Insurance
Dental Insurance
Retirement
FICA
Disability Insurance
Teacher whose spouse has benefits 47,976
Teacher with family benefits 63,476
Teacher with single benefits 54,176
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This pie graph represents the total costs related
to employees Teachers, support staff and
administration
Salary
Health Insurance
Dental Insurance
Retirement
FICA
Disability Insurance
When the school board gives employees a raise,
it is not just salary that increases
The whole pie gets bigger
After known costs are taken out of the new
pie, the salary is determined by what is left.
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This pie graph represents the total costs related
to employees Teachers and administration and
support staff
Salary
Health Insurance
Dental Insurance
Retirement
FICA
Disability Insurance
If health insurance costs were cut in half,
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This pie graph represents the total costs related
to employees Teachers and administration
Salary
Health Insurance
Dental Insurance
Retirement
FICA
Disability Insurance
Salary would increase accordingly
The school would not save money. Employees would
have different health care packages and bigger
paychecks, but the school would have the same
expense.
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How much do we pay teachers?
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2004-2005 Teacher Salary Schedule (low end)
Princeton
Green Lake
Ripon
29,490
28,478
29,867
Source Individual districts salary schedule
Rosendale-Brandon
Montello
MARKESAN
29,740
27,600
30,315
Pardeeville
Average of 9
28,939
28,472
Waupun
Randolph
Cambria-Friesland
29,000
29,255
28,556
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2004-2005 Teacher Salary Schedule (low end)
Campbellsport
Beaver Dam
31,658
31,658
N. Fond du Lac
Horicon
31,615
32,991
MARKESAN
Mayville
30,315
Winneconne
31,449
30,433
Markesan competes for quality teachers with
districts that have higher starting wages
Source Individual districts salary schedule
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2004-2005 Teacher Salary Schedule (high end)
Princeton
Green Lake
Ripon
54,340
50,690
52,994
Source Individual districts salary schedule
Rosendale-Brandon
Montello
MARKESAN
54,363
47,950
52,985
Pardeeville
Average of 9
52,835
52,834
Waupun
Randolph
Cambria-Friesland
51,325
59,021
51,997
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2004-2005 Teacher Salary Schedule (high end)
North Fond du Lac
58,051
Beaver Dam
Horicon
60,792
58,260
MARKESAN
Mayville
53,985
Portage
58,922
55,000
Markesan competes for quality teachers with
districts that have higher top end wages
Source Individual districts salary schedule
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What happens if we make more cuts?
Millions of Dollars
School Years
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What is happening around the State of
Wisconsin?
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Most school districts have the same trouble as
Markesan
X
Florence
X
X
X
X
X
X
X
X
X
X
X
X
MARKESAN
X
X
X
X
Markesan is not alone
X
Madison
X
X
X
X
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Surrounding School Districts
Green Lake
Ripon
Princeton
Rosendale Brandon
Markesan School District
Montello
Waupun
Pardeeville
Cambria Friesland
Randolph
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The state determines school boundaries.
The state determines where our children will go.
Green Lake
Ripon
The state determines where our school tax will be
sent.
Princeton
??
Rosendale Brandon
??
??
??
Montello
??
??
??
??
Waupun
Pardeeville
Cambria Friesland
Randolph
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SCHOOL FUNDING is not just about the school
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SCHOOL FUNDING is about the whole COMMUNITY
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Information can help you understand the gray
areas of the issues
Issues are not always black white
School Funding Issues
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Remember to do something with knowledge
Ask Questions Get Answers
You can make a difference
Knowledge
put into action
is POWER
School Funding Issues
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Learn how we pay for schools
Make a difference
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of Shared Costs from State Aid 2003-2004
Princeton
Green Lake
Ripon
37.3
2.0
68.1
Rosendale-Brandon
MARKESAN
Montello
44.0
70.8
40.4
Pardeeville
66.0
Waupun
Randolph
Cambria-Friesland
66.3
65.8
65.3
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of Shared Cost from State Aid 2003-2004
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What is the State doing about the situation?
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200,000 increase in state aid for education
yields property tax relief not help for
schools when the state does not change the
Revenue Limit
EXAMPLE
200,000 Property Tax Relief
Revenue Limit
400,000 School Property tax
600,000 School Property tax
Even with 200,000 of additional state aid, the
school district has no additional money to use in
the budget.
200,000 New State Aid
400,000 State Aid
400,000 State Aid
Sample million dollar school district budget
Sample million dollar school district budget with
200,000 increase in state aid
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Current list of BILLS (laws) that the Wisconsin
Legislature is considering that could fix the
school funding problems
1. _______________________________________________
_____ 2. ________________________________________
____________ 3. _________________________________
___________________ 4. __________________________
__________________________ 5. ___________________
_________________________________ Please let
someone know if you hear of any.
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The State of Wisconsin has many more
possibilities
MARKESAN
Markesan can raise revenue through real estate tax
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Its all about choices
380 million
Broaden sales tax base
840 million
Increase the sales tax
160 million
Federal capital gains tax
800 million
Restore progressive tax
200 million
Fair corporate tax
320 million
Property tax policy
Review state spending
?????????
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Property tax
State Aid
Fees other
Federal Money
Grants
Temporary Fix Revenue Limit
Gifts
School Budget
Admin.
Buildings
Fuel
Supplies
Teachers
Utilities
Special Ed
Bussing
66
Markesan School Board
What shall we do next?
Our friends and neighbors
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Whats next to go?
Ceramics?
Agri-Leadership?
Arch. AutoCad?
Construction concepts?
CAPP Biology?
Horticulture?
Accounting?
5th Year Math?
Physics?
Foods?
Spanish?
German?
Career skills?
Independent Living?
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We have trimmed the budget to create a school
that is efficient.
If we continue to make cuts
and whittle away at our programs
we will create a school that is deficient.
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Further cuts will produce SCARS that may never
heal
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Do we fix the school funding problems in
Markesan?
Madison?
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Property tax
State Aid
Fees other
Federal Money
Grants
(Long term) FIX the STATE SCHOOL FUNDING SYSTEM
Revenue Limit
Gifts
School Budget
Admin.
Buildings
Fuel
Supplies
Teachers
Utilities
Special Ed
Bussing
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We need a new way of funding our schools. We
will not get a different system with
indifferent voters and legislators. It is time
to learn the issues and take action.
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Keep pulling programs in Markesan?
Support our school? Pass a referendum to exceed
the revenue limit?
Fix problems in Madison?
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Whats it going to cost if the referendum doesnt
pass?
Eventually the school could close
If the school closes, other local businesses are
sure to follow
The health of the school is vital to the health
of the community
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The people who can change things in Madison
include
Madison Office Room 115 West State CapitolP.O.
Box 8952 Madison 53708
Telephone[phone] Fax[phone]
RepresentativeJoan Ballweg41st Assembly
DistrictRepublican
SenatorLuther S. Olsen 14th Senate
DistrictRepublican
Madison Office Room 5 SouthState CapitolP.O.
Box 7882 Madison 53707-7882
Telephone[phone] Fax[phone]
Chairperson, Committee on Education
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The people who can change things in Madison
include
Governor Jim Doyle
Madison Office P.O. Box 7863 Madison, WI 
53707 608-266-1212
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Thank You!
Please e-mail questions, comments, or corrections
to MarkesanQuestions_at_HotMail.com or write
to Markesan Questions P.O. Box 614 Markesan, WI
53946