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Politics & Government

What Happens in Madison...Doesn't Stay in Madison

I've been wondering how this week's political soap opera in Madison impacts Whitefish Bay. Beyond the discussion on public unions' collective bargaining rights, the train coming down the tunnel is a potential $1 million dollar cut in state aid for schools

I've been wondering how this week's political soap opera in Madison impacts Whitefish Bay. 

Beyond the discussion on public unions' collective bargaining rights: the train coming down the tunnel is a potential $1 million dollar cut in state aid for schools. 

In a recent Milwaukee Journal-Sentinel article, Milwaukee Public Schools was expecting a $500 cut in per-child aid.  Applied to WFB, that's a $1.5 million loss.  And usually, property-rich districts are cut more than MPS, so $1.5m may be on the low end of what we might expect.  Could be much more. (Disclaimer: What do I know?)  For the sake of this blog, let's say $1.5 million.

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So how does our school district make that up? 

Well, they could lay off teachers. (Raise your hand if you want your kid to be in a class with 30-plus kids, instead of 22 to 25.)

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They could re-negotiate (or dictate) that the teacher contracts cut about $1.5 million in salary/benefits.   That would be "more possible" if the state does indeed limit public employee unions from negotiating on anything but salary.

It's one thing when Harley-Davidson says demand is down and they need to demand union cuts.  It's another for Whitefish Bay to attempt that.  We've got a high performing school district and a community that values it, not to mention a community on the upper curve of financial capacity relative to the rest of Wisconsin. Quite the opposite of private sector companies demanding cuts.  Not to say it couldn't happen.  The state is in a financial crisis. 

I'm not advocating one path or the other ... I'm just honestly mystified on what the end-game is. 

If I had to take a guess here, it would be this:  Teacher health and pension benefits will be reduced, but not nearly enough to match the reduction in state aid.  The remainder will be made up with local school district tax levy increases.  Possibly quite large, although there are laws that govern levy increases.   

In short, Gov. Walker holding the line on taxes in Madison ... will likely increase property taxes in Whitefish Bay and most other districts.

By the way, if you are curious to know how much your kid's teacher makes, the Journal-Sentinel has a database that contains the figures.  Most are in the $30-70k range, with benefits in the $15-35k range.  The benefits number can be quite large, mostly dependent on whether the teacher takes the health insurance, which is in the $20,000's - as it is for many southeastern Wisconsin private sector companies as well.

Another disclaimer:  I know no more than what I read on this issue, I haven't spoken to anyone on the WFB School Board.  My guess is they wouldn't have much to say either, as the future of this next state budget is a mystery to them as well. 

Speaking from a municipal perspective, state aid for municipalities will most likely be cut too, however, in percentage terms, it is not a huge part of our village budget, so the effect will be far smaller than state aid cuts for schools.

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