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12/12/2007
I smell referendums - everywhere
Can you hear the drumbeat? It’s there, so we all best listen. For ‘tis the season to hear about school district deficits. In yesterday’s FoxPolitics News, I linked to three different stories about three different Fox Valley school districts – and there are many more stories out there where those came from – all over the state.
Here’s some of the rhetoric:
Appleton
Appleton hosted two community information sessions, laying out the deficit situation (projected budget shortage of $4 million for ’08 – ‘09) and asking folks which budget items they’d prefer cutting. At the end of the session, attendees were asked to complete a questionnaire that quizzed us about our affinity for a referendum. And from yesterday’s news article: “While there was talk earlier this year of holding a spring 2008 referendum to deal with ever growing budge woes, Allinger said that question is on hold until next fall when the district could be looking at yet another shortfall of $4 million for 2009-10.
“‘Fall of 2008 is the next time we will wrestle with that, and the earliest we could have a referendum is the spring of 2009.” Hmmm.
Menasha
“The Menasha Board of Education needs to cut $1.5 million from the 2008-09 school budget and is asking for the public’s help in setting priorities for possible spending cuts.” And oh, this little thought….”A few years ago, when the district faced another large deficit, the board suggested some areas of possible reductions and large crowds of residents turned out to defend their favorite programs.” Of course.
“The only other option is asking district voters for permission to exceed revenue limits to make up the shortfall.” Bam, bam, bam, bam, bam….. (hear it?)
Kaukauna
Having earlier predicted deficits of less than $1/2 million, Superintendent Lloyd McCabe is now projecting a 2008-09 deficit of $1.5 million. “A large part of Kaukauna’s budgetary problems stem from the two two-year contract agreements board members approved in May 2006 not knowing the district was carrying a $1.3 million deficit from 2004-05 and 2005-06.” Geez.
“Two years remain under the contract, which in 2008-09 calls for a 3.8% increase in pay and benefits. ‘After that point we’ll have a lot more control about spending in many areas’ McCabe said.” Can you hear the drumbeat.....? And in this morning's paper, Neenah
The Problem
Mark Van Der Zee, Menasha Schools Business Services Manager, says it just right: ”The revenue limits don’t increase as fast as what the ongoing expenditures are.”
Here’s the deal. Districts increase their salary packages (about 85% of a district’s budget) at the QEO or greater, i.e., 3.86% or more. Now, in addition to inflation increases, teachers also get increases when they stay a certain number of years or achieve a certain education level – i.e., “step increases.” It used to be that those step increases had to be calculated as part of the QEO salary package increase. But no, not anymore. So instead of wage/benefit packages increasing about 3.86%, the increases are more in the range of 5% when step increases are paid.
So 85% of a district’s budget is increasing at 5% - and state money is increasing at more like 2.5%. Add to that increasing per pupil costs around the state because of decreasing enrollment numbers in many districts – and you’ve got a cost increase machine that doesn’t stop at inflation – that’s for sure.
So how much is too much to spend in a school district? How much is too much to spend on wages and benefits? How much should be spent on wages and benefits, regardless of extent to which mission is accomplished? How much should be spent on wages and benefits when enrollments are declining. If costs are rising at greater than inflation, at what point do union members decide that every kid deserves a great education – and instead of increasing average class sizes, wage and benefit increases are moderated?
All discussions to have at referendum time. And drumbeats be heard, the time is coming soon for many of us around the state.
COMMENTS
I found it interesting that on Dec 11th the front page of our local paper had headlines which read "Appleton Schools Looks To Save In 08" and back in a few pages "Appleton Birth-5 Coordinator Named". It seems to me we have "coordinators or administrators" for every possible "PC" issue, maybe it's time for some Fox Cities School District consolidation or at least shared services. Perhaps we could all save money.
Bruce Sherman (Wed Dec 12 08:21:04 2007)
What passes for journalism today is pretty pathetic. They dutifully print the woe is me press releases from the school districts with no mention of the history of recent referendums, let alone referring to the Appleton district's schedule for re-introducing referendum campaigns to increase their ability to spend. If a corporation were in financial straits, the first category of bloat that is always scrutinized is the executive and middle management tier. Where is the review of the number of superintendents, assistant superintendents, principals and assistants, etc. in the school system? Between salaries, bonuses, early retirement schemes, and cadillac health care coverage, just how long does the education bureaucracy think the public can continue to support them? They'll trot out the usual litany of courses and programs on the chopping block to start the hand wringing emotional campaign of "we must spend more for the childrennnnn". Give me a break.
Retired Realtor (Wed Dec 12 13:29:53 2007)
Appleton has a defecit yet they can find money to tear down a building and construct a parking lot for West students. While this is not a bad idea in general I don't know why you would do it when you are this short of money and they got along just fine for 80 years without it. Same goes for the houses on Mason. The school district is out there with the obligation until the West boosters come through. What if they don't?
Mike B (Wed Dec 12 13:43:00 2007)
I love the quote
”The revenue limits don’t increase as fast as what the ongoing expenditures are.”
Amazing...if your child said that, what would your answer be ?
If your employer said that, you know 'what' would be coming (Pink Slips), yet it seems that those in our schools, whom you would expect to be the most educated and wise (gulp!),
have not a clue???
Sort of like the guy in a boat that springs a leak and its filling up fast, and his solution is " My bailing pail is too small "
Another "D" student from Logic 101.
Rich (Wed Dec 12 17:47:59 2007)
Don't forget that the Green Bay district is gearing up for another run at a fifth high school plus maintenance expenditures that have not been included in annual operating budgets.
Terry Fondow (Wed Dec 12 20:39:51 2007)
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