ASSESSING THE IMPACT OF
FISCAL CONSTRAINTS AND REVENUE CAPS
ON WISCONSIN PUBLIC SCHOOLS

Prepared for the
Institute for Wisconsin's Future

Prepared by
Stephen L. Percy, Donald P. Haider-Markel, Theodore W. McDonald, & Peter Maier
Center for Urban Initiatives and Research, University of Wisconsin-Milwaukee

Preliminary Report
February 1998

EXECUTIVE SUMMARY

Overview:

In 1993 revenue caps were imposed on Wisconsin school districts by the state legislature. These revenue limits, or "spending caps", froze spending at 1992 levels with only a $211 per pupil increase allowed per year. Since the mid 1990’s, there have been financial shortfalls in many public schools and reports of increasing problems in maintaining the quality of educational programs. This study explores the financial constraints faced by public schools in Wisconsin and the causes for current financial difficulties. But most importantly, this study examines in detail the impact of fiscal limits on the curriculum, activities and facilities of the Wisconsin K-12 schools.

Methodology:

In May, 1997 the Center for Urban Initiatives and Research at the University of Wisconsin-Milwaukee and the Institute for Wisconsin’s Future conducted a survey of all Wisconsin public school principals. Of the 2,033 surveys mailed, 763 (or 38 percent) were completed and returned. The research base for this study consists of 395 elementary schools, 106 middle or junior high schools, 199 high schools, and 63 schools with mixed grade levels. Principals were asked detailed questions about school finances and their impact on a wide variety of programs.

Findings:

Fiscal Constraints- Magnitude and Causes:

• 86% of school principals surveyed indicated that their schools are experiencing financial difficulties;
• 87% of principals said that state revenue caps were causing budgetary problems for their school and 50% said the budgetary problems were having a major impact on their school;
• More than 55% of the schools have increased fundraising activities and 47% have increased fees for extracurricular activities over the past 5 years.

Impacts on Schools

Because of financial shortfalls, public schools in Wisconsin have been forced to take a variety of budget-cutting measures. Academic programs have been cut or eliminated. Textbook and equipment purchases have been delayed. Technology development has been curtailed. Maintaining staff has become more difficult. Student services, extracurricular activities and athletic programs have been reduced. Principals now view many programs as inadequate to meet student needs. This report documents these budget-cutting activities in detail. The following is a summary of key findings.

Academic Programs

• 42% of schools which had summer school programs were forced to reduce or eliminate summer school programs.
• Over 50% of the schools surveyed postponed the purchase of current textbooks/curricular materials; one quarter cancelled purchases altogether.
• Over 55% of the principals stated that funding shortages have made it more difficult to attract and keep teachers, especially in computer technology and remedial education.
• More than 30% of schools have reduced or eliminated extracurricular programs like speech and debate.
• 27% of the schools surveyed have reduced programming for the gifted and talented. Over one in three principals view these programs as currently inadequate to meet student needs.

Technology and Computer Resources

Two out of three schools have experienced moderate to severe problems securing computer resources due to budget problems.

• Over 50% of schools have delayed purchase of needed equipment and 43% said financial constraints will prevent them from buying needed computers.
• Over one third of the principals feel computer technology resources are inadequate to meet student needs.

Athletics and Physical Education

• In two out of three schools, budget problems have had a negative impact on athletic programs.
• Over 35% of the schools reduced or eliminated extracurricular athletics from their after-school programs.

Student Services

• Over 51% of the principals reported that programs for at-risk students were substantially affected. More than one in three schools has reduced or eliminated these programs. Over one in three principals now view these programs as inadequate to meet student needs.
• 43% of schools have deferred or foregone structural compliance projects needed for the school to comply with handicapped accessibility requirements;
• 46% of the school counseling programs were negatively effected. One in five schools have reduced counseling and social services for students. Over one- third of the principals surveyed view the current programs as inadequate to meet students needs.

Building Maintenance and Construction

• In 54% of the schools, budget problems have had a substantial impact on building maintenance; 25% of the buildings had roof leakage and 22% had electrical deficiencies.
• 55% of schools have deferred or permanently foregone purchase of needed building maintenance equipment; 48% have deferred at least one building project.

Urban, Suburban and Rural Differentials

Across almost all the educational categories examined — academic programs, student services and facilities — urban and rural schools experienced more negative impact from funding shortages than suburban schools. Urban schools were more likely than other schools to delay textbook purchases, eliminate programs such as summer-school, at-risk student programs, handicapped youth programs and reduce English as a Second Language. However, all schools, including suburban schools, experienced significant problems due to spending caps.

Conclusion

The findings of this study suggest that financial shortfalls in school budgets across the state were largely the result of spending caps and pose a significant threat to the quality of education in Wisconsin’s public schools. The negative impact of spending caps on the capacity of schools to offer a quality educational program with up-to-date equipment in safe and adequate facilities is widespread. The scope and extent of these educational cutbacks indicates the need for the public and policymakers to reassess the public school funding structure. Given the higher performance standards set for the schools by the state, it is crucial that schools have the resource capacity to meet increased demands for student achievement.

Percy, S. L., Haider-Markel, D. P., McDonald, T. W., & Maier. P. (1998, February). Assessing the impact of fiscal constraints and revenue caps on Wisconsin public schools. Milwaukee, WI: Institute for Wisconsin's Future & UWM Center for Urban Iniatives and Research.

For a printable online version of this summary (PDF*), click here.

*PDF requires Adobe Reader. Download it for free here.

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

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