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Legislative Update


New report on K-12 spending trends indicates WI is falling behind neighbors, nation

by | Sep 2, 2020 | Legislative Update Blog, State Budget

The non-partisan Wisconsin Policy Forum today released a new report titled: “K-12 trends offer caution as tough budget choices loom.” Among the key findings is that while spending on public education nationwide from 2008 to 2018 increased by 23%, it grew only 15% in Wisconsin, placing us 38th in the country. This slower growth in spending is partly reflective of the decline in spending on fringe benefits for school staff post Act 10.

The report also notes that without a significant number of school districts having successfully passed referenda to increase educational spending Wisconsin would be ranked even lower.

The report speculates on what if any role these trends will play when policymakers begin state budget negotiations in the midst of a pandemic that has impacted the state’s economy.  You can see the full report here

Some concerning findings from the report:

“In 2002, Wisconsin’s total spending per pupil was $8,574, placing its statewide public K-12 spending level about 11% higher than the national average and 12th highest in the nation. Since that time, the state’s ranking has fallen. By 2018, Wisconsin’s expenditure of $12,285 per pupil somewhat lagged the average nationwide ($12,612), and its ranking dropped to 24th. Among Wisconsin’s four neighboring states, only Iowa (27th) spent less per pupil in 2018.”

“Inflation-adjusted per-pupil spending across the U.S. increased by 5.4% between 2008 and 2018. Meanwhile, Wisconsin’s adjusted spending levels decreased by 1.4%.”

“Between 2011 and 2018, Wisconsin’s per-pupil spending increased by 4.3% (from $11,774 to $12,285). This increase ranked Wisconsin 49th in the nation in terms of percentage change during that period and compares to 18.9% nationwide.”

“It is worth considering another component of Wisconsin’s school funding context not fully captured in the Census data: voter referenda. Between 2008 and 2018, voters in somewhat under half of Wisconsin’s school districts (189) passed a total of 387 ballot measures to exceed revenue limits for purposes other than issuing debt. Without the impact of these referenda, K-12 spending in Wisconsin would have been even lower over those years.

“Policymakers also need to recognize that the changes adopted in Act 10 account for some (but not all) of the downward trend in Wisconsin’s K-12 per-pupil spending when compared to other states. Those changes also undoubtedly helped many districts absorb the state cuts, but they affected teachers’ benefits and compensation as well, which might in turn affect teacher recruitment and retention.”

View and listen to Wisconsin Public Radio coverage of the report.

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