At 10:00am on July 24th, Governor Doyle signed the budget bill into law as Act 33. The Governor used 131 vetoes to reshape the document to his liking. Republican legislators slammed the Governor’s action as “anti-property taxpayer” and vowed to challenge the Governor’s veto of the property tax levy freeze, either through a veto override attempt or special session legislation. It remains to be seen if schools would be affected by such an effort. Republican legislators do not have the two-thirds majority necessary in each house for a successful override effort. However, the Democrats seem to be in disarray with no sustainable message in response to the Republican criticism of Governor Doyle’s action. This indicates that some Democrats may abandon the Governor and support an override effort.

The final budget package is a major victory for the SAA and for Wisconsin school children. Act 33 continues current law on the revenue cap per pupil increase and does not include repeal of the QEO or any of the collective bargaining law changes originally proposed by Governor Doyle and supported by WEAC. The budget includes a $189 million increase in general school aid as well as an increase in the minimum revenue cap providing relief for low spending districts. You may recall that each of these items was an SAA priority. In fact, the SAA achieved victory on every SAA budget priority we established when the budget was first introduced in February. Although the SAA’s position on SAGE flexibility and health insurance cost management did not survive the Governor’s veto pen, the outcome was expected.

K-12 Budget Veto Highlights

Revenue Limits. The Governor vetoed the provision that would have reduced the revenue limit per pupil increase to $120 in 2003-04 and $100 in 2004-05 and thereafter, back to the current law estimates of $236 in 2003-04 and $241 in 2004-05. The SAA requested this veto.

Four-year-old Kindergarten. The Governor vetoed the provisions that would have provided that, for revenue limit and general aid membership purposes, pupils enrolled in a 4K program who are not considered disabled would be counted as 0.25 pupil. The Governor’s veto will not restore the $46 million cut from general school aid over the biennium but, most importantly, allows schools to count 4K students as 0.5 or 0.6 pupils (current law) for aid and revenue cap purposes. The SAA requested this veto.

Relief for Low Spending Districts. The Governor vetoed the legislature's modification of this provision. The language that remains increases the minimum revenue ceiling to $7400 in 2003-04 and $7800 in 2004-05 and requires only a majority vote of the board to use the additional revenue limit authority. This was an SAA priority.

SAGE Flexibility. This provision would have allowed school districts currently participating in SAGE to choose whether to lower class sizes in grades two or three and continue to receive state aid for low-income pupils in those grades, or to no longer reduce class sizes in those grades and to forego associated state aid. Beginning in 2004-05, any SAGE monies that lapsed in the prior fiscal year would have been used to increase special education aid. The Governor vetoed this provision back to current law. The SAA requested that the Governor retain this provision.

Health Insurance Cost Management. This provision would have allowed school districts to unilaterally convert current group health insurance coverage to the Department of Employee Trust Funds plan or a health coverage plan that is substantially similar to the plan currently offered. This provision would also have made the conversion a prohibited subject of bargaining. The Governor vetoed this provision. The SAA requested that the Governor retain this provision.

Choice and Charter School Expansion. The Governor vetoed these provisions.

Chapter 220. The Governor vetoed the proposed reductions in Chapter 220 aid for sender and receiver districts.

School Finance Commission. The Governor vetoed this provision that would have established a school finance commission. The Governor will be naming his school finance task force shortly.