In an effort to reduce the state’s current budget deficit, Governor McCallum said cutting portions of state funding to public schools is not out of the question.
The current two-year budget, which governs the state’s spending from July 1, 2001, to June 30, 2003, has been the subject of much scrutiny as the state’s fiscal situation has deteriorated since Sept. 11.
“The governor is considering all of his options right now,” said Debbie Monterrey-Millett, McCallum’s press secretary.
McCallum recently ordered a state hiring freeze to combat the current budget deficit that will free about $10 million. In addition, he authorized a 5 percent cut for various state agencies, trimming $82.5 million from the state budget.
When the budget was first crafted in 2000, the state Budget Office estimated a state deficit of $475 million dollars. However, current fears of decreased economic activity have legislators and the Governor scrambling to patch a budget gap that estimates project could total anywhere between $300 million and $1.3 billion.
Rep. Scott Walker, R-Wauwatosa, has proposed cutting state support for school-district debts created through referenda. The majority of funds allocated to this end are used for building construction projects.
“We need to look realistically at where we can cut back,” Walker said. “If you totally eliminate the amount the state pays, you can eliminate a large ticket item from the current budget without compromising the state’s commitment to education in the short run.”
Currently, a school district that wishes to undertake a major building construction or renovation project will typically receive a 66 percent subsidy from the state. Walker is seeking to have that type of spending eliminated, or at least capped.
As recently as 1993, the state funded, on average, less than 50 percent of local construction costs. In 1995-96, when the state authorized the payment of two-thirds of construction costs, requests for new buildings skyrocketed.
“Local school districts took advantage of this,” Walker said. “Another reason behind my proposal is to force school districts to be honest and reasonable about what they put before the voters.”
However, Walker’s proposal is certain to face heavy partisan opposition. Sen. Russ Decker, D-Schofield, was quick to voice strong opposition to any proposal that would affect education funding.
“All [Walker’s proposal] does is shift funding away from schools to fix a mistake,” Decker said. “Corrections cuts are a choice. Health-care costs are pounding public budgets. We need to trim the state budget, but we need to be reasonable about it.”
