Joint Finance passes state
budget --
Technical Colleges Fare Extremely Well
in the Face of $6.6 Billion Deficit
May 31, 2009
• General
Aid Funding and 1% Increase Protected
• New Across-the-Board Cuts Avoided for General and
Categorical Aid
• Gains in Financial Aid Protected
In a 12-hour marathon concluding Friday
morning as the sun rose, the Joint Finance Committee (JFC)
completed its work on AB 75, the 2009-2011 state budget
bill.
The Wisconsin Technical College System
(WTCS) was the only state agency that did not have its budget
cut. In recognition of the important role the WTCS plays
in the state’s economy, the JFC actually increased
the system’s funding by 1%, the first state-wide increase
since 2000-2001.
Members of the JFC said that Local 212’s
voluntary decision to forgo its 2009-2010 wage increase
played an important role in convincing them to protect technical
college funding.
While we won this battle, we are still
losing the funding war. State aid continues to decline and
our reliance on the property tax and tuition grows. Such
an arrangement is unsustainable in the long run and needs
to be addressed in future budgets.
The bill now goes to the full Assembly,
likely during the week of June 8th, followed by the Senate.
Once an identical bill passes both houses, it will be sent
to the Governor for veto consideration and signing. The
new biennium begins July 1st.
We have:
PROTECTED the restoration of proposed
general aid cuts. The original budget proposed
cutting general aid by $3.37 million over the biennium.
We were able to restore this funding in JFC on April 29th.
We preserved this restoration despite motions over the past
weeks to reconsider many early JFC actions.
Impact: + $3.37 million over the biennium
compared with the original bill.
PROTECTED the increase to general
aid realized on April 29th. The JFC supported an
important increase to general aid on April 29th. We preserved
this increase despite enormous pressure to remove all such
“uppers” as the new deficit emerged. This is
the first increase to WTCS general aid since 2000-01.
Impact: + $1.84 million over the biennium
compared to current law.
PROTECTED against new across-the-board
cuts to general and categorical aid imposed on the vast
majority of state operations and programs. As the
JFC struggled to close the additional $1.6 billion deficit,
we faced the real prospect of a 5% across-the-board cut
to general aid, some $12 million over the biennium. We also
faced 5% cuts to all categorical aid programs in addition
to already pending 1% cuts. This would have been an additional
$2.2 million cut over the biennium.
At least one printed budget version circulated
in the past three days included these full cuts. But the
mega-motion passed to balance the state budget did not touch
WTCS general or major categorical aid programs.
Impact: Preserved more than $14 million
in existing technical college funding over the biennium
from across-the-board cuts.
PROTECTED the increase in Wisconsin
Higher Education Grants (WHEG) for technical college students.
On April 29th, the JFC increased financial aid
from proposed annual increases of 1% and 2% respectively,
to 3.5% per year. This increase of $1.16 million over the
biennium compared to the original budget was protected last
night.
Impact: + $1.16 million in new financial
aid over the biennium (above the original budget bill).
This totals an additional $1.9 million over the biennium
(3.5% annual increases) compared with current law.
PROTECTED statutory language changes increasing
flexibility. Because no additional action was taken
affecting previously secured new flexibility provisions,
the WTCS maintained:
• Increasing district capital project limits without
referendum from $1 million to $1.5 million;
• Allowing districts to assess non-resident tuition
at 150% of resident tuition; and
• Increasing flexibility for Workforce Advancement
Training (WAT) Grant funds by reducing the small business
set-aside and making the appropriation biennial instead
of annual.
WTCS Operations take painful cut.
The WTCS Board and System agency operations were
included in 5% across-the-board cuts, like most state agency
operations. This cut will strip away $383,000 in GPR (general
purpose revenue) over the biennium. Like other state employees,
WTCS staff will also be subject to 16 days of unpaid furlough
over the biennium, and non-represented staff will lose pending
2% compensation increases. The Governor has asked the represented
staff to voluntarily give-back their 2% increase. Discussions
are on-going.
PROTECTED current levy authority.
Last but certainly not least, the budget bill passed
by the JFC does not impose additional property tax levy
controls on technical college districts.
The Votes
Both earlier in the process and last night,
the JFC passed provisions affecting us on 12-4 party line
votes. Voting in favor: Senators Mark Miller (D-Monona),
Dave Hansen (D-Green Bay), Lena Taylor (D-Milwaukee), Julie
Lassa (D-Stevens Point), John Lehman (D-Racine), and Judy
Robson (D-Beloit), and Representatives Mark Pocan (D-Madison),
Pedro Colon (D-Milwaukee), Tamara Grigsby (D-Milwaukee),
Cory Mason (D-Racine), Gary Sherman (D-Port Wing) and Jennifer
Shilling (D-La Crosse).
Voting against: Senators Alberta Darling
(R-River Hills) and Luther Olsen (R-Ripon) and Representatives
Robin Vos (R-Caledonia) and Phil Montgomery (R-Ashwaubenon).
Caveats
The budget bill must still clear
the full Assembly and Senate, and must be considered for
line-item vetoes by Governor Doyle prior to signing. There
is a strong sense that both houses hope to pass the JFC
version with few changes. However, there is still a long
path to the final and signed budget. We will continue to
be vigilant, to keep you apprised of our progress, and to
let you know how you can assist.
|
