School Budgets Adjust To Shortfalls

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If you have been following any of my rants regarding Federal taxcuts and how they relate to higher local taxes, the recent Janesville School District budget crisis and the states suggested fee increase for a drivers license are classic if not small examples of this Federal shortfall.

As reported in the Janesville Gazette, the Janesville school district is facing the strong possibility that staffing or service cuts may be necessary to balance the upcoming operating budget, projecting a shortfall of anywhere from $1 million to $3 million. This report, coming out just a few days after residents voted onto themselves a tax increase to not only update the schools utilities but, enlarge the schools as well. Sundays editorial on November 19th in the Gazette blamed enrollment based revenue caps and escalating costs.

JG editorial excerpt:
When enrollment declines, a district’s state aid and property taxes don’t rise fast enough to cover escalating costs.

The shortage of revenue is what concerns me the most, and blaming enrollment caps doesn’t sound quite right either.

JG excerpt:
The district has a headcount of 10,372. That’s down 25 from last years 10,397.

Being down only 25 students shouldn’t result in a average $2 million shortfall in federal and state aid. That comes out to $80,000 a student. I seriously doubt the fed or the state pay 80 grand per student, so most of the blame lies with salary and benefit increases and inflation. But I'm not looking to blame anything really, I just expect more money from the fed, which isn't likely to happen until a new agenda is passed in Congress. One persons escalating costs is anothers lack of funds to meet expenses.

Also, the declining enrollment statement seems odd when you consider question seven of the Janesville City survey distributed just a few weeks ago.

Park Place News excerpt:
(7). Janesville’s population has been growing by about 1% per year, or about 645 people annually since 1990. This translates into about 250 homes per year.

On one hand they are expecting declining enrollment while the city is growing with additional children each year. But one of the key points to the recent Janesville School Referendum was the need to reduce crowding. Confusing? I’ll say!

JG editorial excerpt:
………the school projects should put the district in a good position to attract students in this era of open enrollment. And the improved schools might be the difference in attracting new employers to the area.

The schools are packed to the rafters right now and they want to attract more? How many students will the newly expanded schools hold comfortably without resorting to another expansion or new school? The two schools, Parker and Craig, were designed to hold about 1,200 students, with no air conditioning and other shortcomings in space for computer rooms and physical education the schools were still able to attract over 1,700. What attracted all the retail business to Janesville and students to the schools for the past 10 years? Hocus - Pocus?

JG excerpt:
Evert (School Superintendent) said cuts will be particularly difficult because the state and federal governments require the district to provide services while paying only part of the costs. Those mandated services include special education, teaching English to immigrants, and keeping up with the test score requirements of the No Child Left Behind law.

Sure, there is a lot more at play than enrollment, levy caps and pay raises but this is the bottom line, and one I’ve been ranting about since the beginning. Not enough money is collected from taxpayers at the Federal level if they can't fund their own mandates. Money that is available is being diverted to non-domestic programs (Iraq War) or used to subsidize corporate dividends, while local jurisdictions are given ultimatums just to receive the minimum amount necessary to keep up with Federal requirements. This shortfall can only be made up with local tax increases or painful job or service cuts. Sufficient Federal revenue is the great equalizer. This has been going on for too long and it’s got to stop. The Democrats have got to step up to the plate because nobody else will. They have less than two years to do it.