Legislative Update September 5, 2024
By Wisconsin School Administrators Alliance staff | September 5, 2024
November Referendums
In the upcoming Wisconsin election, voters will weigh in on 137 local school district referendums across 120 districts. These referendums address both non-recurring and recurring increases in school districts’ revenue limits and borrowing requests. Specifically, 57 referendums are non-recurring, 22 are recurring, and 58 for borrowing. This year a record total of 146 school districts will have gone to operating referendum in 2024, which far exceeds the 2022 record of 92. Clearly, the number of referendums highlights the need across the state for adequate funding and infrastructure needs to support the over 800,000 children you proudly serve every day.
You can find the listing of all the school district referendums on the upcoming November ballot on DPI’s website.
Audit ordered for DPI
| Last week, the Joint Legislative Audit Committee today voted 5-4 along party lines to order an audit to analyze the Department of Public Instruction’s monitoring of school district finances. Over the next several months auditors from the Legislative Audit Bureau will work closely with DPI to gather the information needed and then they will present the auditors findings to the Joint Legislative Audit Committee. The scope of the audit includes an evaluation of: DPI policies and procedures to guide staff on reviewing financial information and whether the agency had followed it. How much time DPI staff spent reviewing and following up on school district financial information reported to the agency annually. The timeliness by which school districts submit financial information to DPI and actions taken by DPI to obtain late information. Policies and procedures for tracking and monitoring information related to financial audits, internal control deficiencies and noncompliance, and whether the agency has followed them; and Instances in which DPI acted based on its review of a school district’s financial information submitted to the agency. |
Driver’s Education Grant Program
Funding for Driver’s Education grants was included in the last state budget. The DOT recently announced students may begin applying for the grant. You can find additional information here describing eligibility and the process for students and their families to apply for the grant.
Students who qualify for free/reduced lunch may apply in the link above to have their classroom and behind-the-wheel driver training for a Class D (Regular) driver license paid for through the Driver Education Grant Program. Students with grants can enroll in any driver education program offered by an authorized driver education provider. The tuition will be paid directly to the Driver Training school.
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Capitol Update August 28, 2024
By Wisconsin School Administrators Alliance staff | August 28, 2024
Joint Audit Committee
The Joint Legislative Audit Committee will hold a public hearing and executive session tomorrow August 29th at 10:00am to discuss the proposed audit on school district financial monitoring. The DPI will provide testimony. This memorandum will be the basis of deliberations by the Joint Legislative Audit Committee at its public hearing and executive session on Thursday, August 29.
SAA will be closely monitoring the hearing, providing subsequent updates and offering feedback throughout the audit process. The hearing will be streamed live here on Wiseye.org.
Act 95 Update
Following communications issued jointly by SAA and WASB, regarding the many unanswered implementation questions on Act 95, the guaranteed admission process. DPI recently announced they will consider school board requests to waive certain requirements listed in Wis. Stat. s. 118.58(2), specifically the provision detailing that “pupils shall be ranked on the basis of academic achievement and the sole criterion for ranking pupils shall be the pupil’s grade point average.” Using the DPI’s authority under Wis. Stat. s. 118.38, the DPI aims to provide flexibility to districts in how districts rank the top 5 and 10 percent of students to submit to UW-System under the Guaranteed Admissions Program as created under 2023 Act 95.
School boards should submit a waiver request to waivers@dpi.wi.gov using the waiver process spelled out on the DPI website. When considering whether to grant a waiver, the DPI will focus on the reasons why the district cannot comply with the requirements of Wis. Stat. S. 118.58(2), the district’s proposed alternative policy for determining the top 5 and 10 percent class ranking, and how achievement and academic results will be utilized to determine this ranking.
In considering these waiver requests, the DPI is hoping to assist districts resolve some common issues districts are running into under Wis. Stat. s. 118.58(2), including, but not limited to:
- How to resolve ties between students for the top 5 or 10 percent provisions
- How to apply competency-based grading
- How to implement weighted or non-traditional GPA systems
Any questions should be sent to waivers@dpi.wi.gov.
Act 20 / Act 100 Update
From Wispolitics.com: A Dane County judge ruled Dem Gov. Tony Evers properly used his partial veto authority in nixing parts of a GOP-authored reading bill.
In his ruling, Judge Stephen Ehlke also rejected a request from the Department of Public Instruction to compel the Legislature to give the agency $50 million that had been set aside in separate legislation to fund the effort once the agency received approval from the Joint Finance Committee.
Evers in February partially vetoed Act 100, which created the mechanism allowing DPI to spend the $50 million with approval from the Joint Finance Committee. That came after the guv had signed separate legislation to create the new literacy programs and require a phonics-based approach to reading instruction.
GOP lawmakers had argued the bill set the framework for the money to be spent and wasn’t an actual appropriation bill, which is the only type of legislation for which the governor can use a partial veto. Ehlke today rejected that argument.
The State superintendent’s statement can be found here.
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Capitol Update: Governor’s Taskforce on Workforce and AI Releases Advisory Action Plan
By Wisconsin School Administrators Alliance staff | July 30, 2024
| AI action plan prioritizes strategies to build state’s competitive edge |
| MADISON — Gov. Tony Evers today announced the final action plan of the Governor’s Task Force on Workforce and Artificial Intelligence (AI), offering a positive path forward to connect more workers with AI skills, boost the competitive advantage of Wisconsin employers, and advance economic opportunity through a series of strategic principles and policies. The plan builds on Wisconsin’s success in connecting underutilized talent pools with in-demand skills and strengthening the ability of employers throughout the state to attract and retain talent. “We know that AI technologies are already changing the world as we know it—including the way folks work. And it’s why Wisconsin is working to lead the way on AI implementation and ethical utilization as we continue our work to build an economy that works for everyone,” said Gov. Evers. “Thanks to the strategic action plan developed by the Governor’s Task Force on Workforce and Artificial Intelligence, Wisconsin is now equipped with guiding principles to design policy and prepare programs to empower all our workers and employers for the dynamic future ahead. I want to thank the members of the task force for investing their time, expertise, and ideas as we explore this new frontier for our state’s workforce.” With record high employment and a record number of jobs reported by the U.S. Bureau of Labor Statistics for June, Wisconsin is uniquely positioned to tap the potential of generative AI technologies. The work of the task force also comes as, in recent years, Gov. Evers has deployed a historic more than $150 million in federal American Rescue Plan Act funds to help connect workers with jobs by removing employment barriers and providing additional workforce training. “Thanks to the expertise of task force members from business, labor, education, nonprofit, economic development, and workforce development sectors, the group’s action plan recommends policy directions and investments to capitalize on the AI transformation,” said Wisconsin Department of Workforce Development (DWD) Secretary Amy Pechacek. “The emergence of AI technologies presents new and exciting opportunities to help government work more efficiently and effectively to serve the people of Wisconsin,” said Wisconsin Department of Administration (DOA) Secretary Kathy Blumenfeld. “At the same time, AI-driven technological change must be paired with securing public trust through carefully considered policies and the recommendations developed by this task force.” “A thriving economy benefits workers, employers, job seekers, and the sustainability of the communities in which they live and work,” said Wisconsin Economic Development Corporation (WEDC) Secretary and CEO Missy Hughes. “To achieve this vision and leverage the potential of AI, a strategic approach is needed to support the modernization of Wisconsin’s economy, ranging from manufacturing and agriculture to technology and infrastructure. The task force action plan makes important recommendations to drive this positive change.” The action plan offers guiding principles to promote ethical decision-making related to AI and the workforce, advance equitable access to AI technology and training, and ensure that workers are represented in AI investments to strengthen the state’s economy. With a focus on policies related to education, government, workforce development, and economic development, the policy proposals reflect the need to:Expand digital literacy;Develop more flexible training and credentialing;Continue efforts to remove employment barriers and connect underutilized talent pools with AI skills;Improve government service delivery through strategic deployment of AI tools; andIncent industry adoption of AI tools to enhance competitiveness and create high-quality jobs. In August 2023, Gov. Evers signed Executive Order #211, creating the Governor’s Task Force on Workforce and Artificial Intelligence. Administered by DWD in coordination with DOA and WEDC, the task force brought together leaders from business, agriculture, education, technology, labor, workforce development, and government to identify policies and investments that will advance Wisconsin workers, employers, and job seekers through this technological transformation. After hosting collaborative meetings throughout the last year, the task force has concluded its work, and the final action plan is available here. |
| An online version of this release is available here. |
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Capitol Update: Act 10 Ruling and Legislative Study Committee Hearing
By Wisconsin School Administrators Alliance staff | July 11, 2024
Dane County Court Ruling on 2011 Act 10 Lawsuit
Last week a Dane County Judge ruled that certain provisions of 2011 Act 10 related to collective bargaining rights for most public employees are unconstitutional. The case specifically focused on the law’s differing treatment of different groups under that policy (exempting certain public safety employees). The outcome of this decision has resulted in a request from Judge Frost asking the parties involved in the case to weigh in on potential next steps. The request asks the plaintiffs to identify which parts of Act 10 should be eliminated under this new ruling and asks the defendants to file a response. This will extend the timeline of the circuit court case for at least 35 days or longer. In addition, it is likely that regardless of the ruling by Judge Frost, the case will be appealed to higher courts.
SAA will continue to monitor the progression of this case and provide updates with any future decisions by the courts and appeals by involved parties.
Legislative Study Committee on The Future of the UW System
Today, the Legislative Council Study Committee on the Future of the UW System is holding an informational meeting. You can view that hearing here, it will be archived and available for viewing with the registration of a free account. SAA is actively monitoring this committee given the increase of PK-16 proposals we have seen in the past two sessions.
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Capitol Update: Ten Key Points Addressing the Upcoming July 1 Equalization Aid Estimate from WASBO
By Wisconsin School Administrators Alliance staff | July 1, 2024
Good Afternoon,
WASBO crafted the information below addressing the upcoming July 1 equalization aid estimate. DPI published the aid estimate today, as state law requires. Here are ten key points to use if you receive questions and need additional support:
- The July 1 equalization aid estimate is published by DPI every year, as required by statute, along with a press release. Since the first week of July tends to be a slow news period, the aid estimate receives more media attention than it perhaps deserves. It is after all only an estimate which will be superseded by actual data on October 15. Nevertheless, it is important that business officials, superintendents, and board members not be caught off guard by the July 1 announcement.
- Equalization aid is the largest single line item in the state budget. It provides financial assistance to school districts to achieve two basic policy goals:
- To reduce reliance upon local property taxes as the sole source of revenue for school districts.
- To guarantee that a basic educational opportunity is available to all pupils regardless of the local fiscal capacity of the school district in which they reside.
- Wisconsin school districts are subject to a revenue limit formula, which in effect puts a cap on school district property tax levies. The mechanics of the revenue limit formula dictate that equalization aid has an inverse relationship to property taxes (i.e. more of one means less of the other). For instance, an increase in equalization aid does not mean an increase in total school district revenue, as might be assumed. No, instead, more equalization aid means less reliance on local property taxes.
- The July 1 aid estimate is based on 2023-24 budgeted expenditures for all 421 school districts. However, the October 15 aid estimate will use a completely different data set. The October 15 aid estimate uses audited 2023-24 actual expenditures for all 421 school districts (i.e. not budget data). This is why the July 1 aid estimate may vary significantly from the October 15 aid estimate.
- In the state budget, the equalization aid allocation for 2024-25 is approximately $224.9 M higher for 2024-25 than 2023-24. On a statewide aggregate basis, this will cover most (but certainly not all) of the levy increase allowed by the revenue limit increase of $325 per pupil.
- The 2023-25 state budget increased the school levy tax credit (SLTC) as a policy preference instead of putting those funds into equalization aid. School levies would be lower if lawmakers had put the funds into equalization aid rather than SLTC. The SLTC creates a different distribution, generally favoring taxpayers in high property value school districts.
- Similarly, lawmakers maintained the existing $742 ‘Per Pupil Categorical Aid.’ Like the SLTC, Per Pupil Categorical Aid creates a different distribution than equalization aid. Generally, Per Pupil Categorical Aid favors taxpayers in high property value per pupil school districts.
- ESSER spending has no effect on equalization aid in that it is a ‘deductible receipt’ in the equalization aid formula.
- Voters in the Milwaukee Public Schools approved an operating referendum in April 2024 which will allow MPS to increase its revenue limit authority by $252 M phased in over the next four years. The MPS referendum has no impact on equalization aid distribution for 2024-25. However, there is another potential impact in on equalization aid in 2024-25 related to MPS. It has been publicly reported that MPS may be subject to a ‘prior year accounting adjustment’ of between $35 M to $50 M. If this occurs, those funds would be returned to the equalization aid pool for general distribution across the state in 2024-25. The July 1 aid estimate will not capture this potentiality.
- Finally, let’s not lose sight of the big picture in Wisconsin school funding. As of 2022, the most recent U.S. Census data available, Wisconsin per-pupil spending on K-12 was 7.2% below the national average, ranking 25th among the 50 states. Twenty years before, in 2002, Wisconsin ranked 11th among the states and spent 11% above the national average. Wisconsin experienced the largest change in state ranking in the nation during that time span.
Please feel free to share this memo with school board members or other interested parties as you see fit.
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