MILWAUKEE PUBLIC SCHOOLS' FUNDING
OVER THE LAST DECADE FALLS BEHIND
OTHER MILWAUKEE COUNTY DISTRICTS

Prepared by
Dr. Michael Rosen, Chairman of Economics Program, Milwaukee Area Technical College

Research Assistance by
Michael Grover, IWF Research Associate

1998

Background

A recent study by the Greater Milwaukee Education Trust reported that spending by Milwaukee Public Schools (MPS) almost doubled over the past decade, while attendance and achievement at some MPS schools have not improved. The Education Trust’s report lead to the conclusion that MPS performance problems have grown despite a substantial increase in resources allocated to the system.

The Institute for Wisconsin's Future, IWF, a state policy research center, reviewed data from the Public Policy Forum and the Department of Public Instruction to assess the validity of the Greater Milwaukee Education Trust's claim that MPS funding increased by 66% since 1987.

Methodology

The IWF analysis adjusted the Milwaukee Public Schools budget data for inflation using the Consumer Price Index (CPI). The CPI measures the average change in the price level of goods and services between a base year and any designated date. The CPI is the standard measurement used to factor out the rate of inflation when comparing dollar amounts over time. The Greater Milwaukee Trust's study failed to account for the rate of inflation and enrollment increases in their financial report.

It is not valid to compare budget amounts from 1988-1997 without adjusting for inflation. As the cost of living increases over time, the value of the dollar decreases. To evaluate changes in budget amounts, it is crucial to use constant dollars.

Results

The IWF analysis reveals that in real dollars, adjusted for inflation, per pupil spending rose by just $240, a 4.5 percent increase between 1987/88 and 1996/97. This is less than all other Milwaukee County school districts. In fact, per pupil spending by 12 of the 18 Milwaukee Country districts increased by more than $1,000 in real dollars, an amount four times greater than the increased funding for MPS.

In constant dollars, the MPS budget increased at a minimal rate since 1988, which is in contrast to much larger increases both in Milwaukee County and other districts in the state. (See Table 1.)

Table 1. Per pupil spending increases (adjusted for inflation) in Milwaukee County School Districts between 1987- 88 and 1996-97.

Sources: Public Policy Forum, Public Schooling in the Milwaukee Metropolitan Area, and 1988 and 1997, Milwaukee, Wisconsin. The Consumer Price Index, United States Bureau of Labor Statistics.

Student Need Factors

Significant changes in the MPS student enrollment have occurred that impact educational costs. The 4.5 percent increase in MPS per pupil spending occurred during a time period when:

• The poverty level among MPS students increased by approximately 30 percent;
• The number of MPS students with Limited English Proficiency increased by 64 percent;
• The number of Exceptional Education students rose by 53 percent.

(See Table 2.)

Exceptional Education students now comprise nearly 15 percent of the MPS student body. It is estimated that the cost of serving this population is twice as high as non-Exceptional Education students and only a small portion of this cost is covered by the state. The number of special needs students did not increase significantly in other suburban districts.

Table 2. Increased enrollment of students with special needs between 1987-88 and 1997-98.

Summary

The initial report by the Greater Milwaukee Trust, which stated that MPS funding had nearly doubled, is incorrect when measured in real dollars. The Milwaukee schools have not had a massive increase in funding. In fact, the Milwaukee Public Schools are grappling with more students and more learning problems on virtually a fixed income while other districts in Milwaukee county are experiencing more substantial increases in per pupil spending without the significant increase in special needs student enrollment.

Conclusion

MPS is currently under a two-year mandate to increase attendance, reduce dropout levels and improve student performance. Failure to meet these demands would result in a state takeover of the system. Advocates for the public school system have called for additional monies to be allocated to Milwaukee schools in order to reduce class size, provide summer school and after-school programs, expand technical training and improve teacher preparation.

The debate about whether MPS has adequate funding to meet student needs is a point of much contention. The findings of the IWF research support the view that MPS per pupil spending has not kept pace with the growing challenges that face the school system. Moreover, the minimal increase in MPS per pupil spending over ten years is substantially lower than other districts in the county where student needs are less severe and overall achievement levels are higher. This would indicate that in order to reach the goals set forth by Governor Thompson and to address the problems outlined by the Greater Milwaukee Trust report, adequate resources must be available to MPS to meet the needs of all its students.

Rosen, M. & Grover, M. (1998). Milwaukee public schools' funding over the last decade falls behind other Milwaukee County districts. Milwaukee, WI: Institute for Wisconsin's Future.

To obtain a printed copy of this report, order online or contact IWF at 414-384-9094 or iwf@wisconsinsfuture.org.

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