At a Glance
1) All school districts benefit
The School Finance Network proposes to build upon the existing system of school funding instead of simply rearranging money within it. As a result, no district loses money and every district gains from the plan. After 15 years of caps on funding, no district can afford a loss. The proposal also overhauls revenue controls, allowing annual increases in revenue that align more closely with actual costs. In the past, district revenues have failed to keep pace with costs over which schools have no control. The new system is more effective in aligning school district revenue with annual costs. The proposal overhauls revenue controls, reconfiguring how annual per pupil increases are calculated by moving them from $264 to $350 in year one and tying future increases to overall statewide economic growth. This will allow annual revenue increases to align more closely with actual costs. In the past, district revenues have failed to keep pace with costs such as utilities and transportation, over which schools have no control.
2) The money goes where it is needed most
The School Finance Network proposal targets money to where it is needed most, such as to those who have special needs and those who come from low-income families. New monies are targeted to specific programs for these students and cannot be used elsewhere in school budgets. The proposal also directs new money to districts most in need, such as small, rural schools and those with declining enrollment.
3) Funding sources already exist
Two important changes are made to help control property taxes. First, the proposal calls for expanding the Homestead Property Tax credit, which, based on income, targets money to Wisconsin residents most in need. Second, the proposal increases state aid for all districts. As state aid goes up, local taxes go down. All told, this plan decreases property taxes for residents throughout the state by using alternative sources. There are many funding options available to improve our school funding system, and state leaders can choose among closing corporate tax loopholes, eliminating tax breaks and subsidies for companies that do not keep jobs in Wisconsin, changing the sales tax system, eliminating sales tax exemptions, and adopting strategies to increase federal support for the state.
4) All children deserve an excellent education
After 15 years of capped school funding we need to protect educational programs and services. Arts classes and business training are being cut and eliminated in districts around the state. Class sizes are increasing, too, as a result of continued budget restraints. We need a more effective system of school funding to keep schools solvent, ensuring this nation’s great democratic promise of opportunity for all.
