May 22, 2012

Schools look for where to cut next

School districts across the state are dealing with big budget deficits for next year, and teacher wages and salaries could take a hit.

Wisconsin Association of School District Administrators executive director Miles Turner says the two year budget signed by Governor Walker last summer eased the pain for the current school year. However, he warns the next year will be a much different story because districts have fewer places to cut.

Turner says districts will be unable to make the same kinds of cuts to benefits they did last year, stimulus funding is drying up, and most districts will not see the large number of retirements that helped cut salary costs in their last budgets. He says many people “bailed out” because of the uncertain budget situation, which school officials cannot count on at the end of this school year.

AUDIO: Miles Turner (:22)

The Appleton school district is facing a $2 million deficit. Administrators want to save $1.5 million by freezing wages and increasing health insurance deductibles. Turner says he hopes cuts like that are used as a last resort because it could force people to pay up to 40-percent of their health benefits. Those benefits packages are often designed to make up for lower salaries, and Turner warns that cutting wages and benefits could turn quality educators away from the profession.

Rick Schuh, WHBY

Rainy day fund remains elusive goal

It seems there’s a lesson yet to be learned by state budget writers. Revenues are down from earlier estimates, driven largely by a decrease in cigarette tax collections. Dale Knapp is with the Wisconsin Taxpayers Alliance. “The lesson coming out of that is – one, these things are hard to predict, so it’s preferable to keep some sort of balance, a rainy day fund in case the projections are wrong. And two, we’ve not done that,” says Knapp.

That’s despite the fact that Wisconsin has had a requirement for a “rainy day fund” on the books for more than a decade. “It’s really the cumulation of ten to fifteen years of various gimmicks and tricks to try to balance the budget, rather than face things head on and say “okay, let’s keep some sort of a cushion here,”‘ says Knapp. When the current recession began, says Knapp, states which had a rainy day fund were in a better position to deal with that. In 2008, early in the last recession, Arkan­sas and Wisconsin had the smallest bud­get reserves of any states.

State statute stipulates a two percent set aside in annual appropriations to be held in reserve – something that’s never been achieved. Knapp says indications are the state could find itself back in deficit by the middle of 2013. “We still have no cushion, and as the economy turns a little bit again, we’re seeing difficult times ahead,” says Knapp.

Budget panel approves cuts

The Legislature’s budget-writing committee on Wednesday approves more than $120 million dollars in cuts to state government. Joint Finance Committee co-chair, Representative Robin Vos, noting these lapses had been approved as part of Governor Scott Walker’s state budget. “This is not some surprise, it’s not something that was unplanned. These reductions have been planned since the budget was passed in July,” he says.

AUDIO: Bob Hague reports (1:05) [Read more...]

Protestors — one year later

Piles of valentines dumped onto the security desk outside Governor Walker's office 02/14/11. (FILE PHOTO: Jackie Johnson)

The protests began on February 14th, 2011 with about 1,000 University of Wisconsin students, faculty and staff delivering so-called Valentines to Governor Scott Walker, asking him to reconsider his budget repair bill, which aimed to fix the budget deficit by making changes to public employee collective bargaining.

The Solidarity Singers have become a fixture at the Capitol, the sing leader is Chris Reeder. He says there’s no going back; citizen activism in Wisconsin is forever changed. “The place of labor, the place of unions, the place of education and teachers — those conversations in Wisconsin are forever different.”

Reeder says there’s been a lot of progress made over the past year, including two Republican senators losing to Democrats in their recall elections. A peak of 100,000 demonstrators brandished signs and marched around the Capitol Square, drawing national attention and big names to the state. At one point, the Walker Administration put the Capitol on lockdown citing security concerns.

Jeremy Ryan, often seen at the Capitol on a segway, says he has learned a lot about politics in the past year. He had no idea the demonstrations would last this long. “When the occupation had started I thought that was only gonna last a few days before the police would come in and swoop us all out.”

Daily noontime singers in the Capitol (PHOTO: Jackie Johnson)

Walker eventually signed the collective bargaining bill into law in mid-March, which he argued would fix the budget hole and get the state back on strong financial footing.

To this day, protests continue, most regularly are the daily Solidarity Singers. There’s currently an effort to recall Governor Scott Walker, Lt. Governor Rebecca Kleefisch, and four state senators.

Organizers have scheduled several events marking the anniversary of the historic demonstrations.

AUDIO: Jackie Johnson report 1:49

Ryan rips Obama budget (AUDIO)

President Barack Obama releases his ten-year spending plan, and a member of Wisconsin’s congressional delegation says its a recipe for bitter austerity. “It’s really designed to help the president in his reelection campaign,” says Wisconsin congressman Paul Ryan. He says the president “has punted again” when it comes to the debt crisis.

AUDIO: Rep. Paul Ryan (2:20) [Read more...]