2011-2012 Budget
For the last school year (2010-11), the MMSD budget was $379.1M. The budget for the coming school year (2011-2012) is $362M – a decrease of $17.1M or 4.51%
1. Preliminary figures:
The Superintendent’s preliminary cost-to-continue budget, which was introduced before Governor Walker’s budget repair and budget bills, was $386.5M, an increase of approximately 2.0%. It included a projected salary increase of about 2.0-2.5% for staff, an anticipated hike in the revenue limit of $200/ student and a decrease of 9.1% in state aid. The projected decrease in state aid was a result of budget actions taken in the last biennium of the Doyle administration.
2. Gov. Walker’s proposals
- 5.5% reduction in the Revenue Limit Authority, which translates as “spending authority.”
- No increase in major categorical aid for programs such as special education and SAGE (smaller class sizes in elementary schools w/high levels of students eligible for free/reduced price lunches).
- Decrease of 10% for bilingual aid/bicultural aid, school milk, and tuition payments.
- Reduction, statewide, of $390.5M (8.4%) in general state aids for 2011-12. Previous legislative
action included a hold-harmless clause that would have prevented any district from losing more than 10% of the state aid received in 2010-11 school year. See “Breaking News” below…
3. Impact on MMSD budget
- The 5.5% reduction in revenue authority meant MMSD had to reduce spending by $24.5M from the Superintendent’s cost-to-continue budget.
- Costs for categorical programs continue to increase. No increase in state aid will impact services to these students.
- MMSD continues to serve more students who are not native English language speakers. A
reduction in state aid for these students will negatively impact services. - MMSD projected and built its final budget on the assumption that it would lose 10% (hold-
harmless) from last year’s general state aids – a projected loss of almost $5M.
See “Breaking News” below…
4. Budget Resolution for $24.5M shortfall
2008 referendum, which GRUMPS supported with gusto, provides $4M to spend above the
revenue limit, thereby reducing shortfall to $20.5M.
How did MMSD resolve the $20.5M dilemma?
Most of you can figure out where most of the money came from – staff pension contributions (5.8% of salary) = $11.46M , staff salary freeze = $4.7M , health insurance savings = $2.2M (increases were projected at 7.14%, but Dean, Physicians Plus, & GHC came in at 2% or lower).
The remaining $2M in savings came mostly from freezing non-salary budgets, decreasing supply budgets by 2.5%, shifting staff salaries to grant funding, eliminating 2.0 FTE in labor relations and Public Information.
Last year, MMSD under-levied by $10,060,057 in order to reduce the tax burden on the average
homeowner. Because of a significant reduction in state aid that, last year, could have been
made up by a property tax increase, the property tax rate increased 8.66% and the school tax
on a $250,000 home increased from $2,545 to $2,765. The $10M that was not spent last year
remained available to the Board of Education this year, but they chose to use only $1.9M of that
taxing authority, which allowed the levy to remain the same as last year’s levy.
5. Final levy, tax numbers
| 2010-11 | 2011-12 | |
| Total Budget | $379.1m | $362.0m |
Total Property Tax Levy |
$245m | $245m |
Tax Rate * |
$11.06 | $11.06 |
| Average Home Value | $241.2m | $239.2m |
| Average Tax | $2,668 | $2,627 |
| $250k Home - Average Tax | $2,765 | $2,765 |
* Per $1,000 of assessed valuation
BREAKING NEWS (as reported in the Wisconsin State Journal, Saturday, July 2)
The MMSD School Board passed the 2011-12 budget on Monday, June 20. Friday, July 1, DPI released estimated figures for each school district’s state aid for 2011-12. MMSD had project a loss of almost $5M in state aid. DPI figures showed the loss to be $6.7M or almost $2M more than had been figured in the budget calculations. This is also a 13% loss rather than a 10% loss, as specified in the hold-harmless legislation. The District is currently appealing DPI’s calculation. If these numbers stand, MMSD will receive $43.2M in general state aid. Only four years ago, the District received $60.6M. Losing $17.4M dollars in the face of increasing expectations and demands for accountability puts in MMSD in a challenging situation.
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