Saturday, June 27, 2009

Budget update

The legislature reached a deal friday on the 2009-2011 bienniel budget. Governor Doyle is expected to sign it into law on the 30th. Considering the difficulty of the state's current finances and the recent history of contentious and much delayed budgets it is a bit surprising to me that we have a budget on-time. The deal reached doesn't have any additional school finance surprises, but it does repeal the state's QEO (Qualified Economic Offer).

The QEO law dates to school finance reform legislation passed in 1993, it provides that school districts can avoid arbitration in negotiations with the teacher's unions by providing a contract with at least a 3.8% "total package" increase in salaries and benefits. The QEO was considered part of a 3 part formula for reforming public school finance, the other parts being the revenue cap and 2/3rds funding from state sources. It tend to think that repealing one of these 3 parts will necessitate reform of the rest of the system in the coming years.

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