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Summary of 2003 Wisconsin Act 33 2003-05 Budget With Governor's Vetoes Noted

Provisions Related to
Elementary and Secondary Education
and State Agency Operations

Prepared by Policy and Budget Team
Department of Public Instruction
August, 2003

GENERAL SCHOOL AIDS

 

General Equalization Aids/Two-Thirds Funding Commitment

 

GOVERNOR:

  • Eliminate the state's two-thirds funding commitment. Repeal the requirement that the Department of Administration, the Legislative Fiscal Bureau and the department annually estimate the funding needed for the state to pay two-thirds of partial school revenues. The Governor further recommends repealing the authority of the Joint Committee on Finance to set school aid in odd-numbered fiscal years. According to the Governor, repeal of the two-thirds commitment is a necessary first step toward establishing a new approach toward school funding in Wisconsin.
  • The department had estimated that in order to maintain this commitment the state would be required to increase the FY03 base funding by $150 million general purpose revenues (GPR) in FY04 and $296.5 million GPR in FY05. In lieu of maintaining two-thirds funding, the Governor proposes to transfer $40 million SEG in FY04 and $60 million ($20 million over FY04) SEG in FY05 from the transportation fund to general school aids. This general equalization aid increase equals about 1 percent in FY04 and 0.5 percent in FY05.

JCF:

  • Adopt the Governor's recommendation to eliminate the requirement that the state fund two-thirds of partial school revenues. Adopt the Governor's recommendation to provide $40 million SEG in FY04 and $60 million SEG in FY05 from the transportation fund for general school aids, but sunset the SEG funding as of June 30, 2005. This would remove the $60 million from the base going into FY06.
  • Provide an additional $55,200,000 GPR in FY04 and $79,600,000 GPR in FY05 for general school aids. This increase is offset by the $23 million annual general aid decrease as part of changes in the pupil FTE count for four-year-old kindergarten (4K), as described below. The net general aid increase by JCF is $32,200,000 GPR in FY04 and $56,600,000 in FY05.
  • Total general equalization aid under the bill equals $4,273,145,900 in FY04 ($4,233,145,900 GPR and $40 million SEG) and $4,317,545,900 in FY05 ($4,257,545,900 GPR and $60 million SEG).

VETO BY GOVERNOR:

  • Remove the sunset provision related to the use of transportation fund dollars. Ongoing funding from the transportation fund for general school aids will be $60 million in FY05 and beyond.

Four-Year-Old Kindergarten (4K)

GOVERNOR:

No provision.

JCF:

  • Provide that, for revenue limit and general school aid membership purposes, pupils enrolled in a 4K program who are not considered children with disabilities would be counted as 0.25 pupil, rather than 0.5 or 0.6 under current law. Children with disabilities in a 4K program would continue to be counted as under current law. Specify that the 0.25 or 0.35 reduction in the count of pupils not considered children with disabilities would be removed from all years of the three-year rolling average under revenue limits and the general school aid, computer aid and property taxes attributable to the 0.25 or 0.35 reduction would be excluded from base revenues in the FY04 revenue limit calculation. It is estimated that this would reduce revenue limit authority by $38 million annually in districts with 4K programs.
  • For general school aids, provide that the change would first affect aid distributed in 2004-05.
  • Delete $23 million GPR annually from general school aids.
  • This provision also reduces pupil counts and aid amounts for Milwaukee Parental Choice Program and Milwaukee-Racine Charter School Program schools.

VETO BY GOVERNOR:

  • Veto the reduction in pupil count for 4K students. This restores an estimated $38 million annually in revenue limit authority to districts providing 4K programs.
  • This veto does NOT restore the $23 million GPR annually from general school aids. The additional general equalization aid generated by the veto for 4K pupils counted for school aid membership will be taken from the remaining general equalization aid appropriation.
  • When the Legislature adopted this provision, it also reduced estimated costs for the Milwaukee Choice and Milwaukee-Racine Charter programs because these programs count four-year-old pupils in the same manner as for regular public schools. Thus, as a result of this veto, the following reestimates are necessary:
    1. Choice payments are increased by $1,764,600 GPR in FY04 and by $1,782,900 GPR in FY05.
    2. The estimated lapse from general school aids related to Choice payments is increased by $794,100 in FY04 and $802,300 in FY05.
    3. Charter payments are increased by $564,000 GPR in FY04 and by $568,900 GPR in FY05.
    4. The lapse from general school aids related to Charter payments is increased by the same amount as the Charter payment estimates are increased.

Primary Aid Hold Harmless

GOVERNOR:

  • Eliminate the primary aid hold harmless provision in the general equalization aid formula. Under current law, a school district's primary aid cannot be reduced by negative aids generated at the secondary or tertiary aid levels. This provision would redistribute general school aids from a small number of relatively high-spending, high-property value school districts to relatively lower-spending, lower-value districts. However, the redistributive effects would be lessened as under current law; a school district's aid cannot be decreased from one year to another by more than 15 percent (special adjustment aid).
  • If the hold harmless provision had been eliminated in the current 2002-03 school year, it is estimated that approximately $2 million in general equalization aid would have been redistributed from 13 relatively high-spending, high-property value school districts to most other districts.

JCF:

Delete provision.

VETO BY GOVERNOR:

N/A
 

Equalization Aid Adjustment for Reassessment of Telephone Company Properties

GOVERNOR:

No provision.

JCF:

  • Modify the current law procedure for the adjustment of equalization aid after redetermination of the assessment of manufacturing property to also allow for the adjustment of equalization aid if a redetermination of the assessment of telephone company property is made after June 30, 1995, and if the school district files the request within four years of the date of the redetermination.
  • This provision is expected to only affect the Waukesha School District, and is estimated to result in an additional approximate $800,000 increase in general school aids in FY04. The increase will come from the general school aids appropriation, meaning an $800,000 general aid reduction for all other school districts in FY04.

VETO BY GOVERNOR:

N/A
 

Chapter 220 Program Modifications

GOVERNOR:

No provision.

JCF:

  • Make the following changes to the interdistrict transfer aid under the Chapter 220 program:

    1. Specify that the membership fraction used to calculate sender aid would be reduced from the current law 0.75 FTE to 0.65 FTE in FY05 and 0.5 FTE in FY06 and each subsequent year; and
    2. Specify that a receiving district be paid the lesser of the average net cost per pupil (the current law payment) or $11,000 in FY05, $10,000 in FY06, $9,000 in FY07 and $8,000 in FY08 and each subsequent year.
  • Milwaukee Public Schools is most affected under 1 (most suburbs would also be slightly affected) as a sender district as this provision would affect their revenue limit authority and eligibility for state general school aid in a negative manner. NOTE: MPS is responsible for all transportation costs related to Chapter 220. Some, and ultimately all, suburban districts and MPS would be affected by 2 as receiving districts.

VETO BY GOVERNOR:

Veto provision in its entirety.
 

REVENUE LIMITS

 

Per-Pupil Revenue Limit Adjustment

 

GOVERNOR:

No provision.

JCF:

  • Reduce the revenue limit per pupil adjustment to $120 in FY04 and $100 in FY05 and thereafter, from the current law estimates of $236 in FY04 and $241 in FY05. This is estimated to reduce school district revenue limits by $100 million in FY04 and $220 million in FY05. In combination with the $38 million annual revenue limit reduction related to the changes in counting of 4K pupils described above, total revenue limit reductions are estimated to be $138 million in FY04 and $258 million in FY05, a biennial total of $396 million.

VETO BY GOVERNOR:

Veto provision in its entirety.
 

Low Revenue Ceiling

GOVERNOR:

  • Under current law, if a school district's base revenue limit per pupil is below $6,900, that district's revenue limit per pupil may be increased to $6,900. This bill increases that amount to $7,400 per pupil in FY04 and $7,800 per pupil in FY05. This would allow districts with relatively low revenue per pupil to increase their local school property tax levy without having to hold a referendum. The Department of Administration estimates that 98 school districts would be eligible to increase their revenue under this provision over the 2003-05 biennium.
  • This low revenue provision could redistribute general aid from relatively high-spending, high-property value districts (and thereby could increase their levy) to those school districts that are eligible under this provision. This redistribution would not take effect until FY05 as general school aid distribution is based on prior year data. If a school district increased its revenue limit authority in FY04, as provided under this bill, this revenue increase would be included in that district's FY05 shared costs for purposes of general equalization aid distribution. Any FY04 increase in revenue limit authority would be fully funded by the local levy in that year.

JCF:

  • Modify the Governor's recommendation to increase the low revenue ceiling to $7,400 in FY04 and $7,800 in FY05, to require a two-thirds vote of the school board to use this additional revenue limit authority.

VETO BY GOVERNOR:

  • Veto the two-thirds vote requirement, meaning a simple majority vote is required to use the additional authority.

CATEGORICAL AIDS

 

 

TANF Funding Changes - Aid to MPS

 

 

GOVERNOR:

  • Eliminate $1,410,000 PR-S from the aid to Milwaukee Public Schools federal block grant aids appropriation in each year. The following related statutory program requirements are eliminated as follows:

    1. Section 119.80, Stats., requiring MPS to submit a spending plan to the Governor for the expenditure of the $1,410,000 PR-S funds appropriated through TANF for the programs listed in 2. and 3.
    2. Section 119.72, Stats., requiring MPS to contract with private, nonprofit day care centers ($910,000).
    3. Sections 119.82 (2), (3) and (5), Stats., related to Learnfare pupils, requiring MPS to contract with private, nonprofit, nonsectarian agencies to provide alternative educational programs for learnfare pupils and to have the department pay MPS for these costs. ($500,000). While the TANF funding component was eliminated, the budget does retain language requiring MPS to provide an alternative education program for a student sanctioned under Learnfare at the request of a parent.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

TANF Funding Changes - Head Start

GOVERNOR:

  • Reduce the Head Start supplement appropriation by $212,500 PR-S in each year. This reduces the TANF-funded portion of the Head Start supplement from $3,712,500 to $3,500,000 annually.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Alternative School American Indian Language and Culture Education Aid

GOVERNOR:

  • As requested by the department, increase $40,000 PR annually in expenditure authority for Alternative School American Indian Language and Culture Education Aid.

JFC:

  • Delete $260,000 PR base funding annually from DPI and eliminate the alternative school American Indian language and culture education categorical aid program.
  • There are 5 alternative American Indian schools ((Indian Community School in Milwaukee, Lac Courte Oreilles Ojibwa School (Hayward), Mashkiisiibii Tribal School (Bad River Band-near Ashland), Oneida Tribal School and Menominee Tribal School)). It is estimated that they will serve 1,300 students in each year of the biennium.

VETO BY GOVERNOR:

N/A
 

Grant to Beloit College

GOVERNOR:

No provision.

JFC:

  • Delete $50,000 PR annually (from gaming compact revenues) in base funding from DPI and eliminate the grant to Beloit College for Native American culture education.

VETO BY GOVERNOR:

N/A
 

Driver Education Aid

GOVERNOR:

No provision.

JFC:

  • Reduce funding by $500,000 GPR in FY04 to reflect estimated declines in claims by school districts and eliminate the state categorical aid for driver education and $4,304,700 GPR in FY05.
  • Reallocate $4,304,700 GPR to the special education appropriation in FY05.

VETO BY GOVERNOR:

N/A
 

School Library Aid

GOVERNOR:

  • Adjust the department's expenditure authority for school library aids based on reestimates of anticipated revenues. Funding for this initiative comes from the common school income fund.
  • Approve the department's reestimate of -$2.5 million SEG in FY04 and $500,000 SEG in FY05.
  • Under the bill, estimated school library aid is $26 million in FY04 and $29 million in FY05.

JFC:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Special Education Aid

GOVERNOR:

  • Make supplemental payments under school based services (SBS) to school districts. In total, the amount going to school districts between Medical Assistance (MA) SBS and special education school aids will stay the same, but the state will achieve savings by increasing the amount of federal MA funds that support these payments.
  • This will be accomplished by increasing Department of Health and Family Services (DHFS) GPR appropriations. DHFS will use this GPR to make supplemental payments to school districts that will include MA federal matching funds.
  • There is no reduction in the special education categorical aids appropriation. Savings are realized by requiring the department to lapse an amount equal to the supplemental payments made under MA from the special education aids appropriation.
  • DHFS will share with the department the amount of supplemental payments made (approximately $20 million), sorted by school district, and then the department will withhold an identical amount from each school district's last special education aids payment.

JCF:

  • No change to Governor's proposal on SBS funding.
  • Reallocate $785,500 GPR in each year of the biennium to Special Education Aids from three of the department's GPR operations appropriations, reflecting the additional 5% GPR reduction described in the Administration and Other Funding, Base Budget Reduction section.
  • Reallocate $4,304,700 GPR in FY05 to Special Education Aids as a result of the elimination of Driver Education Aids, described above.

VETO BY GOVERNOR:

N/A
 

Student Achievement Guarantee in Education (SAGE)

GOVERNOR:

No provision.

JCF:

  • Allow currently participating school districts to choose whether to lower class sizes in grades two or three and continue to receive state aid for low-income pupils in those grades, or to no longer reduce class sizes in those grades and to forego associated state aid. Specify that beginning in FY05 and thereafter, the appropriation for special education aids would be increased from the amount otherwise appropriated by an amount equal to any monies that lapse from the SAGE appropriations in the prior fiscal year. There is no reduction to the SAGE appropriation.

VETO BY GOVERNOR:

Veto provision in its entirety.
 

Elks and Easter Seals Center for Respite and Recreation

GOVERNOR:

No provision.

JCF:

  • Provide an annual increase of $25,000 GPR over the FY03 base of $50,000 for the Elks and Easter Seals Center for Respite and Recreation.

VETO BY GOVERNOR:

N/A
 

CHOICE, CHARTER AND OPEN ENROLLMENT

 

Milwaukee Parental Choice Program (MPCP)

 

GOVERNOR:

  • Link the annual increase in per pupil payments under the MPCP to the percentage increase in general school aids (about 1 percent in FY04 and .5 percent in FY05). Under this proposal, the MPCP per pupil payment would increase by about $55 in FY04 and $28 in FY05. Under current law, the MPCP payment would be increased annually by the revenue limit per pupil increase granted to public school districts (estimated at $237 in FY04 and $243 in FY05).
  • Reestimate MPCP pupil enrollment and provide $68,427,900 GPR in FY04 and $72,187,900 GPR in FY05.

JCF:

  • Approve Governor's proposal linking the per pupil payment to percentage increases in general school aids, as described above.
  • Delete $1,248,900 GPR in FY04 and $835,300 GPR in FY05 from the choice program appropriation. Adjust the MPS general school aid reduction by -$562,000 GPR-Lapse in FY04 and -$375,900 GPR-Lapse in FY05. (The net effect of this reestimate would be to decrease GPR expenditures by $686,900 in FY04 and $459,400 in FY05.)
  • These reestimates result from two changes. First, based on the general school aids funding appropriations, reestimate the maximum choice payments to be $5,882 in FY04 and $5,943 in FY05 (compared to $5,838 in FY04 and $5,866 in FY05 under the Governor). Second, based on the four-year-old kindergarten provisions adopted (and described earlier), reestimate choice membership to be 11,421 in FY04 and 12,007 in FY05 (compared to 11,721 in FY04 and 12,307 in FY05 under the Governor).
  • Adopt provisions of Assembly Bills 259 and 260 related to expanding participation in the Milwaukee Parental School Choice program.

    Choice Student Eligibility. Adopt the provisions of Assembly Bill 259, which would, beginning with the 2004-05 school year, make the following modifications to the choice program:
     

    1. Delete the limit on the number of pupils who can participate in the program, which is set at 15 percent of MPS membership;
    2. Specify that a pupil who attends a choice school would remain eligible to participate in the program even if the pupil's family no longer meets the program's income criteria; and
    3. Delete the prior-year participation requirements for pupils entering the program.
       

    Choice School Eligibility. Adopt the provisions of Assembly Bill 260, which specifies that schools located in Milwaukee County, rather than only the City of Milwaukee, that meet the eligibility criteria could accept students in the choice program, beginning with the 2004-05 school year.

VETO BY GOVERNOR:

  • Veto JCF changes related to expanding participation in their entirety. Also restore choice 4K membership counts as a result of the 4K pupil count provisions (see veto described under General School Aids).

Milwaukee-Racine Charter Schools Program (MRCSP)

GOVERNOR:

  • Link the annual MRCSP per pupil payments increase to the MRPCP per pupil payment increase (see provision above). Under this proposal, the MRCSP payment would increase by about $55 in FY04 and $28 in FY05. This modification would also apply to the charter school established by the University of Wisconsin-Parkside. Under current law, the Milwaukee-Racine Charter School payment would increase annually by the revenue limit per pupil increase granted to public school districts (estimated at $237 in FY04 and $243 in FY05).
  • Reestimate MRCSP estimated pupil enrollment and provide $34,656,800 GPR in FY04 and $41,889,100 GPR in FY05.

JCF:

  • Adopt Governor's provision related to the per pupil payment increase, as described above.
  • Reestimate the charter schools appropriation by -$2,186,000 GPR in FY04 and -$1,665,100 GPR in FY05, due to the following changes: Based on the general school aids funding provision adopted by the Committee, reestimate the charter payments to be $7,050 in FY04 and $7,111 in FY05. Based on the 4K provisions adopted by the Committee, and a reestimate of the Racine charter school membership, reestimate charter membership to be 4,470 in FY04 and 5,521 in FY05. Reestimate the Racine Unified School District charter school payment based on an estimated 180 pupils being eligible for the payment in each of the next two years, and reestimate the Racine Unified School District equalization aid amount to be $5,291 in FY04 and $5,339 in FY05.
  • Adopt the provisions of Assembly Bill 261, which would make the following modifications to the charter program:
    1. Allow pupils who reside outside MPS to attend Milwaukee charter schools;
    2. Delete the prior-year participation requirements for pupils entering the program; and
    3. Allow school districts, including MPS, to transport pupils attending charter schools.
  • Delete the current limit of 400 on the number of pupils who may attend the charter school operated by the UW-Parkside in the Racine Unified School District (RUSD). Establish a limit of 400 on the number of pupils for which the RUSD may receive payment under current law, who are attending this charter school and previously attended RUSD. Because enrollment at this charter school is projected to be less than 400 in the 2003-05 biennium, no fiscal effect is identified for the provision eliminating the 400 pupil limit on the number of pupils who may attend this school. Similarly, because it is estimated that RUSD will receive payments for 180 pupils attending this charter school each year in the 2003-05 biennium, no fiscal effect is shown for the proposed 400 pupil limit on the number of pupils for which RUSD could receive these payments.

VETO BY GOVERNOR:

  • Veto JCF changes realted to AB 261 provisions and both provisions related to the 400 pupil limit in Racine in their entirety.

ASSESSMENTS

 

High School Graduation Test

 

GOVERNOR:

  • Repeal the requirement that the department develop and administer a high school graduation test beginning in FY05. This provision does not affect existing testing at grades 4, 8 and 10.
  • Change the definition of "Children At Risk" to exclude children at risk of not graduating from high school because they failed the high school graduation test.
  • Eliminate the requirement that school boards and charter schools operating high school grades adopt and administer a high school graduation test.
  • Eliminate the need for school boards operating high school grades and charter schools operating high school grades to include the high school graduation test score as part of their policy specifying criteria for granting a high school diploma. The criteria of the pupil's academic performance and the recommendation of teachers remain in place.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Assessment Base Reduction

GOVERNOR:

  • Reduce base GPR funding for pupil assessment by 10 percent ($348,340) in each year from $3,483,400 to $3,135,060.

JCF:

  • Further reduce GPR funding for pupil assessment by 5 percent ($174,300) for a total reduction in this appropriation of 15 percent ($522,900).

VETO BY GOVERNOR:

N/A
 

LIBRARY SERVICES

 

Public Library System Aid

 

GOVERNOR:

  • Reduce GPR expenditure authority in the department's aid to public library systems appropriation by $2,111,900 GPR in each year (from $14,196,700 to $12,084,800).
  • Create a segregated fund appropriation for aid to public library systems in an amount equal to the GPR reduction. This appropriation is funded from the universal service fund. No net reduction in library system aid payments.

JCF:

  • Approve the Governor's recommendation to use USF monies for a portion of public library aids.
  • Specify that the USF-funded supplemental public library appropriation would sunset on June 30, 2005.

VETO BY GOVERNOR:

  • Remove the sunset on the USF supplemental appropriation.

Library Service Contracts

GOVERNOR:

  • Reduce GPR funding for library service contracts by 10% ($103,200) from the FY03 base of $1,031,700 to $928,500 (see Administration and Other Funding, Base Budget Reduction).

JCF:

  • Further reduce GPR funding for library service contracts by 5 percent ($51,600) for a total reduction in this appropriation of 15 percent ($154,800).

VETO BY GOVERNOR:

N/A
 

BadgerLink Funding

GOVERNOR:

  • Provide $36,700 SEG in FY04 and $93,300 SEG (from the universal service fund) in FY05 to maintain the current level of BadgerLink services.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

SCHOOL DISTRICT OPERATIONS

 

Qualified Economic Offer Repeal

 

GOVERNOR:

  • Repeal the authority of a school district to avoid binding arbitration by offering a qualified economic offer (QEO) to its employees.
  • Require for collective bargaining offers submitted to arbitration that arbitrators consider whether the final offers promote an equal opportunity for a sound basic education.
  • Require that education policy issues be subjects of bargaining, but are not subject to arbitration without the agreement of both parties.
  • Authorize the teachers' bargaining unit to include, in its final offer, items it believes are needed to meet pupil performance standards if the employer's proposal links teacher compensation to pupil performance.
  • Repeal the minimum 3.8 percent annual compensation increase for nonrepresented school district employees.

JCF:

Remove above provisions from the budget as non-fiscal policy items.

VETO BY GOVERNOR:

N/A
 

Public Employer Group Health Insurance Plan

GOVERNOR:

No provision.

JCF:

  • Allow counties, municipalities, school districts, and technical college districts to unilaterally convert current group health insurance coverage provided to their nonprotective employees to:

    1. The public employer group health insurance plan offered by the Department of Employee Trust Funds under s. 40.51 (7) of the statutes; or
    2. A health care coverage plan, including a self-insured plan, that is substantially similar to the plan offered under s. 40.51 (7).
  • Direct the Wisconsin Employment Relations Commission to use criteria in rules promulgated by the Commissioner of Insurance to determine if health care coverage plans are similar.
  • Specify that any decision by the employer to make this conversion would be a prohibited subject of bargaining, first effective for contracts entered into extended, modified, or renewed, whichever comes first, on the effective date of the bill.

VETO BY GOVERNOR:

Veto provision in its entirety.
 

ADMINISTRATION AND OTHER FUNDING

 

Base Budget Reduction

 

GOVERNOR:

  • Reduce the department's four GPR operations appropriations in each year by 10 percent as follows:

    1. Delete $1,119,200 GPR and 10.0 FTE from the agency's largest operations appropriation.
    2. Delete $1,011,000 GPR and 8.0 FTE from the two residential schools' operations appropriation.
    3. Delete $348,600 from the pupil assessment appropriation (also included under Assessments).
    4. Delete $103,200 from the library service contracts appropriation (also included under Library Services).
  • In addition, remove 7.00 FTE position authority from other fund sources.

JCF:

  • Increase the Governor's base budget reductions from 10 percent to 15 percent for DPI state operations appropriations, except for residential schools. Reductions are as follows:

    1. Delete $1,678,800 GPR from appropriation 101.
    2. Delete $1,011,000 GPR from appropriation 102 (no change to Governor's proposal).
    3. Delete $522,900 GPR from appropriation 105.
    4. Delete $154,800 from appropriation 320.
  • Reallocate total additional reduction of $785,500 GPR to the special education aid appropriation.
  • No change to FTE reductions in Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Limit on GPR State Operations Appropriations

GOVERNOR:

No provision.

JCF:

  • Provide that for fiscal years 04, 05 and 06, the total amount of GPR appropriations for state operations (less the amounts for debt service payments, plus the amounts set aside for compensation reserves) may not exceed the FY03 level (less debt services payments, plus compensation reserves).

VETO BY GOVERNOR:

N/A
 

Compensation Reserves

GOVERNOR:

  • Provide total compensation reserves of $252,150,900 in FY04 and $383,974,700 in FY05 for the increased cost of state employee salaries and fringe benefits.

JCF:

  • Reduce the total level of funding included in state compensation reserves for the 2003-05 biennium by $20,000,000 GPR, $5,104,600 FED, $3,083,700 SEG and $15,361,700 PR.

VETO BY GOVERNOR:

N/A
 

Reductions for Discretionary Compensation Adjustments

GOVERNOR:

No provision.

JCF:

  • Require that the Secretary of Administration determine the annualized value of the discretionary compensation adjustments awarded in FY02 to non-represented classified employees under the 2001-03 state compensation plan. Each agency's affected appropriations for FY04 and FY05 are to be reduced by an amount equal to 27 percent of the annualized cost of such adjustments, including fringe benefit costs. If not in violation of state law or federal requirements, non-GPR amounts so reduced are to be lapsed to the general fund.

VETO BY GOVERNOR:

  • Partially veto to require the same annual lapse and transfer amounts to the general fund as were intended in the budget bill ($520,000 GPR-lapse, $130,900 FED-lapse, $400,000 PR-lapse, $80,000 SEG-lapse and $480,000 in GPR departmental revenues), but allow the DOA secretary to apportion these reductions in alternate ways.

Employee Health Insurance Benefits

GOVERNOR:

  • Provide for more effecient and cost-effective purchasing of state employee health insurance by:

    1. Placing each health plan into one of three tiers (low cost, medium cost and high cost) based on the risk-adjusted cost.
    2. Replacing the current 90 percent/105 percent statutory contribution formula with one that requires the state to pay not less than 80 percent of the cost of the plans in the lowest cost tier.
    3. Providing additional flexibility to allow modification of the standard plan to make it more cost-efficient and compatible with the tiering approach.

JCF:

  • Adopt the Governor's proposal. Additionally, specify that for permanent or project state employees with appointments between .50 FTE and .74 FTE, who are Wisconsin Retirement System participants, the state would contribute one-half of the normal state contribution for a full-time employee, commencing January 1, 2004, and the employee would contribute the remainder. Lapse all non-FED fringe benefits savings to the general fund. Stipulate that this requirement would be a prohibited subject of bargaining for the state as an employer and specify that the modification would first apply to employees who are affected by a collective bargaining agreement that contains inconsistent provisions on the day on which the collective bargaining agreement expires, or is extended, modified, or renewed, whichever first occurs.

VETO BY GOVERNOR:

  • Partially veto to allow part-time employees' share of health insurance premiums to be the subject of collective bargaining and the compensation plans. Leave in place, as a fallback if the bargaining process or compensation plan process fails to obtain agreement on the employee and employer contributions to health insurance premiums, the revised threshold of 1566 hours annually for employees to receive benefits of a full-time equivalent position. Leave in place the mechanism for lapsing funds from agency budgets to offset the estimated costs of the health insurance formula change, and request the DOA secretary to recover the respective amounts that would have been lapsed under these provisions before this partial veto.

Budget Reorganization-Technology Educational Achievement in Wisconsin (TEACH) Program

GOVERNOR:

  • Eliminate the TEACH board, educational technology block grants program ($35 million GPR annually), and educational technology training and technical assistance grants program ($4 million GPR annually). Effective for FY04, transfer the board's remaining educational technology functions, which include telecommunications access grants, to the department.
  • Increase expenditure and position authority in the department for the following purposes:
    1. $2,902,700 GPR and $2,445,600 PR in each year for debt service on authorized bonds;
    2. $188,900 PR in FY04 and $211,400 PR in FY05 and a 0.50 FTE PR position in each year to support the Governor's Wisconsin Educational Technology Conference;
    3. $4,415,000 FED and a 0.50 FTE FED position for federal E-rate program management; and
    4. $16,524,500 SEG in FY04 and $17,262,000 SEG in FY05 and a 1.0 FTE SEG position in each year for telecommunications access program management. Expands eligibility for grants under the telecommunications access program to public museums.

JCF:

  • Transfer the remaining TEACH functions, which would be transferred to DPI under the Governor's proposal, to the department of administration (DOA).

VETO BY GOVERNOR:

N/A
 

Educational Technology Courses

GOVERNOR:

No provision.

JCF:

  • Delete the requirement that DOA work with the department to develop courses for the instruction of professional employees licensed by DPI in the use of educational technology.

VETO BY GOVERNOR:

Veto provision in its entirety.
 

AODA Administration

GOVERNOR:

  • Provide an annual increase of $18,400 PR over the FY03 base of $781,600 PR for AODA administration.

JCF:

  • Reduce funding by $33,600 in FY04 from the FY03 base; increase funding in FY05 $14,400 over base. Total funding for AODA program administration and fellowship grants after these reductions would be $748,000 in FY04 and $796,000 in FY05.

VETO BY GOVERNOR:

N/A
 

National Teacher Certification Reestimate

GOVERNOR:

  • As proposed by the department, reestimate the sum sufficient appropriation to fully fund awards for teachers earning certification from the National Board for Professional Teaching Standards. The appropriation for national teacher certification is increased by $262,500 GPR in FY04 and $665,000 GPR in FY05.

JCF:

  • Modify the Governor's recommendation to reestimate funding by -$40,000 GPR in FY04 and -$22,500 in FY05 from the amounts provided in SB 44.

VETO BY GOVERNOR:

N/A
 

Attorney Consolidation

GOVERNOR:

  • As part of the statewide attorney consolidation proposal, transfer 2.00 FTE attorney positions from the department to the Department of Administration (DOA). Funding related to the transferred positions would remain in the department's budget to purchase legal services from the DOA. The DOA secretary would determine the assignment of attorneys to individual agencies. The department would retain 1.0 FTE chief legal counsel.

JCF:

  • Delete provision. Instead, direct the Secretary of DOA, on January 1, 2004, to delete 31 FTE vacant attorney positions from executive branch agencies, excluding the UW System. If there are fewer than 31 vacant FTE positions, the DOA secretary is to eliminate filled positions to achieve the 31 FTE reduction.

VETO BY GOVERNOR:

  • Partially veto to remove the exclusive focus on attorney positions and limiting reductions to vacant positions. The reduction of 31 FTE positions can be made from any vacant position identified by the DOA secretary. However, attorney positions will be among the first that the DOA secretary will examine when implementing this position reduction.

Special Counselor Grants

GOVERNOR:

No provision.

JCF:

  • Delete the appropriation that was used for one-time funding for special counselor grants and eliminate related statutory provisions.

VETO BY GOVERNOR:

N/A
 

Teacher Certification Position Deletions

GOVERNOR:

  • Delete 2.35 FTE currently vacant PR-S positions, whose incumbents were previously transferred to federal fund sources, for which long-term teacher certification funding is insufficient.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Teacher Licensing Fee to Fund Mentoring

GOVERNOR:

No provision.

JCF:

  • Require DPI to increase fees for initial licensure and renewal teacher and administrator licenses from $100 to $150, effective July 1, 2004.
  • Create a separate program revenue appropriation under DPI to receive all revenues generated by the $50 increase and provide $1,500,000 PR in FY05.
  • Require DPI to distribute from this appropriation grants to all school districts to fund mentoring for initial educators, based on the number of teachers employed by each district.

VETO BY GOVERNOR:

Veto provision in its entirety.
 

Criminal History Search Fee Increases

GOVERNOR:

  • Increase fingerprint card record check fee by $5 per search.
  • Create a $5 per paper copy request surcharge for criminal history record checks.

JCF: No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Program Revenue Reestimates

GOVERNOR:

  • Provide changes in program revenue expenditure authority in Student Activity Therapy (-$2,500 in each year); Teacher Certification ($130,000 in FY04 and $230,000 in FY05); Professional Services Center Charges ($20,000 in each year); Gifts, Grants and Trust Funds ($490,000 in FY04 and $540,000 in FY05); Funds Transferred from Other State Agencies ($357,200 in each year for operations and $812,200 in each year for local aids); Library Products and Services (-$410,700 in each year); WCBVI and WESPDHH Pupil Transportation (-$54,000 in FY04 and -$22,000 in FY05); WCBVI and WESPDHH Leasing of Space (-$30,000 in each year); WCBVI and WESPDHH Services ($23,000 in each year); Alternative School American Indian Language and Culture Education Aid ($40,000 in each year); and Alcohol and Other Drug Abuse Program ($74,900 in each year).

JCF:

  • Revise Governor's reestimates as follows:

    1. Delete funding for Alternative School American Indian Language and Culture Education Aid.
    2. Provide -$27,400 in FY04 and $67,000 in FY05 for Alcohol and Other Drug Abuse Program. Total funding from this appropriation for AODA categorical aids to school districts after these reductions would be $1,471,200 in FY04 and $1,565,600 in FY05.

VETO BY GOVERNOR:

N/A
 

Federal Revenues Reestimates

GOVERNOR:

  • Provide changes in federal revenue expenditure authority in Federal Aids ($17,084,800 in each year for operations and $114,984,900 in each year for local aids); Indirect Cost Reimbursements ($720,700 in FY04 and $481,100 in FY05); Federal Local Assistance (-$188,100 in each year); and Federal Aid to Individuals and Organizations ($3,624,900 in each year). The significant increase in Federal Aids reflects a base funding adjustment to reflect increased dollars from the 2002 No Child Left Behind Act.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Federal Administrative Funding

GOVERNOR:

No provision.

JCF:

  • Require that DPI submit for approval under a 14-day passive review by the JCF, its plans for any use of federal funding that would support DPI operations, effective for proposed use of these monies beginning in FY04.

VETO BY GOVERNOR:

Veto provision in its entirety.
 

Fuel and Utility Reestimate

GOVERNOR:

  • Provide $2,300 GPR in FY04 and $4,400 GPR in FY05 to adjust the residential schools' fuel and utilities budget for expected changes in prices and for statistically normal weather conditions.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Debt Service Reestimate

GOVERNOR:

  • Adjust the agency's base by $116,300 GPR in FY04 and $10,400 GPR in FY05 to reflect a reestimate of debt service costs.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Standard Budget Adjustments

GOVERNOR:

  • Adjust the agency's base to reflect standard budget adjustments for: 1. Turnover reduction. 2. Removal of noncontinuing elements. 3. Full funding of continuing salaries and fringe. 4. Overtime. 5. Night and weekend differential. 6. Fifth week of vacation as cash.

JCF:

  • Modify the Governor's recommendation by reducing each state agency's budget for FY04 and for FY05 by the amounts that were included in each agency's appropriations as an adjustment for the costs of payments to employees for their fifth week of vacation eligibility as cash rather than time off. Delete $21,700 GPR, $5,800 FED and $1,100 PR annually, and require the department to lapse $28,600 annually to the general fund.

VETO BY GOVERNOR:

N/A
 

General Educational Development (GED) Processing Charge

GOVERNOR:

  • Authorize the department to charge fees for issuing a high school graduation equivalency declaration or a general educational development certificate, and create a program revenue appropriation for this purpose. Give the State Superintendent the authority to promulgate rules establishing fees and providing exemptions from those fees based on financial need. The budget assumes that the fees will be implemented effective January 1, 2004.
  • GPR expenditure and position authority in the department's state operations appropriation will be replaced by the new program revenue over the biennium. Reduce GPR position authority by 0.5 FTE (equal to 0.25 FTE on two existing positions) in FY04 and replace with 0.5 FTE PR position authority; reduce GPR position authority by 1.0 FTE (equal to 0.5 FTE on two existing positions) in FY05 and replace with 1.0 PR position authority. Savings of $50,300 GPR in FY04 and $102,000 GPR in FY05; $50,300 PR added in FY04 and $118,600 PR added in FY05.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

Reduce Required Number of Career and Technical Student Organization Educational Consultants

GOVERNOR:

  • Revise s. 115.28 (30), Wis Stats., to reduce from two to one the number of full-time consultants the department is required to provide in each of the following subject areas: agriculture education, business education, technology education, family and consumer sciences education, and marketing education. Reduce from full time to half time the required consultant in health science education. Cumulative effect is to reduce by half (from 11 to 5.5) the number of consultants that are statutorily required to be provided in these subject areas.

JCF:

No change to Governor's proposal.

VETO BY GOVERNOR:

N/A
 

School Finance Commission

GOVERNOR:

No provision.

JCF:

  • Create a 12-member K-12 School Finance Commission. Provide that membership of the Commission would be made up of: (a) three members appointed by the Governor; (b) one member appointed by the State Superintendent of Public Instruction; (c) three by the Senate Majority Leader; (d) three by the Speaker of the Assembly; (e) one by the Minority Leader of the Senate; and (f) one by the Minority Leader of the Assembly. Specify that the Governor would appoint the chairperson. Provide that the Commission consider the system for funding K-12 education in the state, including the following issues: (a) school district revenue limits; (b) the equalization aid formula; (c) school finance equity; (d) the qualified economic offer; (e) school district health insurance costs; and (f) any other issues the Governor, the Senate Majority Leader, the Speaker of the Assembly, the Senate Minority Leader and the Assembly Minority Leader requests the Commission to consider. Provide $10,000 GPR in FY04 for the Commission's expenses, in the annual general program operations appropriation under DOA for the expenses of committees created by law or executive order, under the program for attached divisions and other bodies. Require the Commission to submit a report on K-12 school funding, including any recommendations for modifications to the system, to the Governor, State Superintendent and the Legislature by January 1, 2004.

VETO BY GOVERNOR:

Veto provision in its entirety.
 

Information Technology Lapse to the General Fund

GOVERNOR:

No provision.

JCF:

  • Direct DOA to lapse or transfer to the general fund from the unencumbered balances, other than sum sufficient appropriations, $20,000,000 in 2003-04 and $20,000,000 in 2004-05 from executive branch agency information technology projects. Specify that the Secretary of DOA may not waive the submission of expenditure estimates for information technology projects during 2003-05 and is required to disapprove estimates of expenditures for information technology projects equal to $20 million in FY04 and FY05. Specify that the Secretary may not lapse or transfer funding from any appropriation that would violate a condition imposed by the federal government on expenditure of funds or would violate the federal or state constitution.

VETO BY GOVERNOR:

  • Broaden the application to all state agencies and all appropriations.
  • Make the lapses or transfers an aggregate $40,000,000 biennial obligation, rather than $20,000,000 each fiscal year.
  • Delete all association with information technology projects.
  • Effect of veto is to permit Secretary of DOA to allocate the required lapses across all sectors of state government operations. The Secretary is to take into account economies that have been realized through information technology improvements.

OTHER AGENCIES

 

Department of Workforce Development (DWD) (in connection with the elimination of the Governor's Work-Based Learning Board)

 

GOVERNOR:

  • Transfer funding and staff for the Governor's Work-Based Learning Board (GWBLB) to DWD's Division of Workforce Solutions. The board's new name would be the Governor's Work-Based Learning Council. The Council is to "oversee the planning, coordination, administration, and implementation of youth apprenticeship, school-to-work, and work-based learning programs under s. 106.13 (1) and such other employment and education programs as the governor may by executive order assign to the department."

    In fulfilling this responsibility, the council is to identify employment and education needs and recommend to the Governor goals and steps toward meeting those needs; recommend to the Governor a strategic plan for coordinating provision of services; evaluate programs for effectiveness in meeting employment and education needs of their participants; determine if any federal laws, regulations, or policies impede the effectiveness of programs and if so, recommend to DWD that it seek waivers; recommend for DWD approval of occupations for the youth apprenticeship program and statewide skill standards for school-to-work programs; review and recommend for DWD's approval a school-to-work program for children at risk provided by a nonprofit organization; provide uniform performance standards that help evaluate the effectiveness of specified employment and education programs; and prepare and submit a report to the Governor and the Legislature of the council's activities.

    Based on the council's recommendations, DWD is to plan, coordinate, administer, and implement youth apprenticeship, school-to-work, and work-based learning programs under s. 106.13 (1) and other employment and education programs assigned to it through executive order by the Governor. DWD will assume specified statutory functions previously undertaken by the board.

    The unclassified Council executive director is to be appointed by, and to serve at the pleasure of, the Governor. The Governor's Work-Based Learning Council, would join the Council on Workforce Investment, the Technical College System Board, and the department in assisting DWD to provide the youth apprenticeship program, the school-to-work program, and the Work-Based Learning Program. DWD is to first review the recommendations of the council in approving occupations and maintaining a list of approved occupations for the youth apprenticeship program and before approving statewide skill standards for the school-to-work program.

    Contracts entered into by the GWBLB are in effect and are transferred to DWD. DWD is to carry out obligations under these contracts until they are modified or rescinded by DWD to the extent allowed under the contract.

    Rules promulgated by GWBLB remain in effect until their specified expiration date or until amended or repealed by DWD. Orders issue by GWBLB remain in effect until their expiration date or until modified or rescinded by DWD.

    Matters pending before GWBLB are considered to be before DWD. Materials submitted or actions taken by GWBLB are considered to be submitted or taken by DWD.

JCF:

  • Eliminate the GWBLB, executive director position, and related responsibilities.
  • Transfer the youth apprenticeship and youth apprenticeship training grant programs to DWD for administration. A total of $1,100,000 GPR would be provided annually for youth apprenticeship training grants. (This would be an annual reduction to base level funding of $1,103,000 GPR.) In order to receive a grant, the local partnership would be required to meet the following requirements: 1. limit the cost per student to a maximum of $900 per youth apprentice (total grant divided by the number of students to be served); 2. provide matching funds equal to 50 percent of the grant amount; 3. at least 80 percent of two-year program participants must receive a high school diploma upon completion of the youth apprenticeship program; and 4. at least 60 percent of youth apprentices must be offered full-time employment by their employers upon completion of the program. In addition, $365,000 GPR and 3.0 GPR positions would be provided annually to administer the program. (This would be a reduction of $294,300 GPR and 2.7 GPR positions annually.)

VETO BY THE GOVERNOR:

  • Reinstates GWBLB.
  • Restores the authority of the GWBLB to administer the youth apprenticeship program. However, the Governor could not, through the veto, transfer the youth apprenticeship appropriation from DWD to GWBLB.
  • Removes requirement regarding offers of full-time employment for at least 60% of youth apprentices upon completion of the program. (Therefore, the 60% expectation now includes offers of part-time employment.)

Wisconsin Technical College System (WTCS) Board (in connection with the elimination of the Governor's Work-Based Learning Board)

GOVERNOR:

No proposal.

JCF:

  • Transfer all remaining GWBLB funding, programs, and staff (not outlined in the Department of Workforce Development section above), including Carl Perkins, Title II tech prep funds, work-based learning grants to tribal colleges, and school-to-work for at-risk youth programs to WTCS Board for administration. Annual funding for work-based learning grants to tribal colleges would be reduced by 50 percent to $300,000 PR in tribal gaming revenues. The bill specifies that incumbent employees related to the transfer of GWBLB from DWD to the WTCS Board retain their state employment rights at DWD if funding related to the position is not available for transfer to WTCS. This results in a total of $285,000 GPR, $2,665,900 PR, 4.60 PR positions, $318,000 FED, and 5.45 FED positions annually to WTCS.

VETO BY GOVERNOR:

  • Restores positions and funding to GWBLB transferred under the bill to WTCS. Tech prep responsibilities vetoed for WTCS. NOTE: The Governor could not veto the transfer of appropriations for school to work programs for at-risk youth and work-based learning grants to tribal colleges without stripping these programs' funding. The Governor noted, however, that these were "essentially pass-through grants" and therefore the GWBLB could oversee Work-Based Learning Programs in general. The Governor asked DWD and GWBLB to assist the WTCS Board in its administration of these programs.