Saturday, January 24, 2009

Doyle on the budget...

The board and Superintendent Gerlach returned yesterday from the WASB convention in Milwaukee. The convention ended on a sobering note with Governor Doyle speaking at the closing session. The governor is facing the prospect of a 5.4 billion dollar deficit in the 2009-2011 bi-ennial budget as state revenues decline in the current recession.

"Not getting cut is the new increase in this budget," Doyle said in a speech at the State Education Convention in the Milwaukee Hilton Hotel.


Of course Doyle admitted that no increase is effectively a cut in the face of continually rising costs. Doyle went on to describe his parents educational experiences during the great depression, perhaps to communicate the idea that things aren't as bad as they could be. I didn't find it very reassuring!

Anyway, skipping the annual increase in the state aid to schools will put a big hole in the budget that we will have to fix. The precise details of how it will effect the district and the taxpayer depend on the final package in the state budget including the amount of funding, adjustments to the revenue cap, and any other tweaks to the aid formula that might be made. Given the recent history of the budget battles don't hold your breath for an early resolution to these questions. I think it is a given that we will see significant spending cuts along with tax increases of some kind. We will see the Gov's budget proposal in early February- this will give us some idea of the direction we are headed- but the original proposal can be a long way from the final deal.

Personally I will push for aggressive spending reductions early in our district. It is easier to plan cuts early and restore spending if the budget picture improves, if you wait too long our hands can be tied by contractual obligations.

We will have another look at next year's budget Wednesday at the January Business Services meeting. I don't expect this spring will be much fun.

3 comments:

Anonymous said...

How much has the increase for MG been the last few years?
In other words, if the ammount is frozen, how much less (based upon the last few years average increase) would the State share be?

Peter Sobol said...

Actually we haven't seen an increase in state aids over the last 2 years because of 3 year average declining enrollment and the complexities of the state funding formula and local property values, but we budget, plan and tax for that. However a reduction of the per student revenue cap or the state aid formula could reduce revenue by a much larger number proportion. If I have time I will crawl through the numbers for you, but that takes time.

Anonymous said...

The state budget deficit now $5.9 B and will get worse. How is the district's (financial) disaster plan?