MONROE - Gov. Scott Walker's proposed budget, scheduled to be released March 1, could have a major impact on schools across the state.
Monroe School District Business Manager Ron Olson Thursday told the Monroe School Board that Walker's budget could include a $900 million reduction to equalization aid over the budget's two years.
Any reductions in state aid and revenue limits, he said, could impact a school district's ability to make up the loss in a levy.
Monroe is one of 22 school districts across the state that has referendum questions on the April 5 ballot. Monroe is seeking a four-year $8 million non-recurring referendum.
"We (the state) are doing things that are not in the best interest of children and the community," Monroe Superintendent Larry Brown said. "I don't see the benefits of this. It's tearing apart our community."
Based on the scenario of a $900 million reduction, Olson said that the state aid reduction would be about 19.34 percent over two years. Without knowing how it will be divided in each year, Olson said it could be a 9.7 percent reduction or $1.72 million of the district's current equalization in state aid for next year. Olson said that adds up to $661 per pupil.
The other uncertainty is any potential reduction in the state revenue limit.
Olson said it will be hard for the state to cut the revenue limit by $500 per pupil, since some districts receive more aid than others and it would likely result in a negative aid scenario for some districts. Olson said the aid reduction could be offset by levying for lost aid.
The state also could set the revenue limit at $500 per pupil, and then prohibit districts from levying to make up the loss.
Each district would receive a revenue limit reduction, but districts who receive more aid would, in reality, receive a reduction greater than $500 per pupil.
"That would be a worse-case scenario," Olson said. "If we had a $500 reduction in the revenue limit, and a $661 reduction in state aid per pupil, that's scary."
Walker's budget repair bill - that would eliminate most collective bargaining rights for most public employees - has school districts scrambling.
Public union leaders have agreed to Walker's plan that would require public employees to pay 12.6 percent of their health insurance premiums and 5.8 percent of their salaries toward WRS retirement.
Walker's plan also limits collective bargaining to just wages, excluding health insurance and pensions.
The total wage increase that could be bargained would not be able to exceed the Consumer Price Index - instead of the Qualified Economic Offer formula.
Teachers in a union could not be required to pay dues and employers would be prohibited from withholding union dues.
Olson said the health insurance premium increase is for state employees and schools and municipalities who are using the state insurance plan.
"There have been some reports that say this insurance provision applies to all school and municipal employees, but I haven't read it that way when reviewing the legislative bureau of analysis," Olson said. "I believe the governor intends the removal of collective bargaining rights would allow for municipalities and schools to simply change the health benefit to the state plan and is thus one of the tools available to come up with additional budget savings."
Walker contends the modifications would save $30 million and that number would increase to $300 million over the next two years. Walker has pledged that thousands of state and public workers would be laid off if the budget repair bill isn't passed.
In a related matter, the board met in closed session Thursday night to discuss MEA negotiations, layoff and non-renewal of teacher contracts.The contract for Monroe teachers expires June 30. The district is in negotiations with the teachers on a new contract that would begin with the 2011-12 school year. Brown said there would be no action.
Monroe School District Business Manager Ron Olson Thursday told the Monroe School Board that Walker's budget could include a $900 million reduction to equalization aid over the budget's two years.
Any reductions in state aid and revenue limits, he said, could impact a school district's ability to make up the loss in a levy.
Monroe is one of 22 school districts across the state that has referendum questions on the April 5 ballot. Monroe is seeking a four-year $8 million non-recurring referendum.
"We (the state) are doing things that are not in the best interest of children and the community," Monroe Superintendent Larry Brown said. "I don't see the benefits of this. It's tearing apart our community."
Based on the scenario of a $900 million reduction, Olson said that the state aid reduction would be about 19.34 percent over two years. Without knowing how it will be divided in each year, Olson said it could be a 9.7 percent reduction or $1.72 million of the district's current equalization in state aid for next year. Olson said that adds up to $661 per pupil.
The other uncertainty is any potential reduction in the state revenue limit.
Olson said it will be hard for the state to cut the revenue limit by $500 per pupil, since some districts receive more aid than others and it would likely result in a negative aid scenario for some districts. Olson said the aid reduction could be offset by levying for lost aid.
The state also could set the revenue limit at $500 per pupil, and then prohibit districts from levying to make up the loss.
Each district would receive a revenue limit reduction, but districts who receive more aid would, in reality, receive a reduction greater than $500 per pupil.
"That would be a worse-case scenario," Olson said. "If we had a $500 reduction in the revenue limit, and a $661 reduction in state aid per pupil, that's scary."
Walker's budget repair bill - that would eliminate most collective bargaining rights for most public employees - has school districts scrambling.
Public union leaders have agreed to Walker's plan that would require public employees to pay 12.6 percent of their health insurance premiums and 5.8 percent of their salaries toward WRS retirement.
Walker's plan also limits collective bargaining to just wages, excluding health insurance and pensions.
The total wage increase that could be bargained would not be able to exceed the Consumer Price Index - instead of the Qualified Economic Offer formula.
Teachers in a union could not be required to pay dues and employers would be prohibited from withholding union dues.
Olson said the health insurance premium increase is for state employees and schools and municipalities who are using the state insurance plan.
"There have been some reports that say this insurance provision applies to all school and municipal employees, but I haven't read it that way when reviewing the legislative bureau of analysis," Olson said. "I believe the governor intends the removal of collective bargaining rights would allow for municipalities and schools to simply change the health benefit to the state plan and is thus one of the tools available to come up with additional budget savings."
Walker contends the modifications would save $30 million and that number would increase to $300 million over the next two years. Walker has pledged that thousands of state and public workers would be laid off if the budget repair bill isn't passed.
In a related matter, the board met in closed session Thursday night to discuss MEA negotiations, layoff and non-renewal of teacher contracts.The contract for Monroe teachers expires June 30. The district is in negotiations with the teachers on a new contract that would begin with the 2011-12 school year. Brown said there would be no action.