Erin Richards, and Jason Stein

Milwaukee Journal Sentinel

Gov. Scott Walker's 2017-'19 state budget plan includes a significant boost in school funding, but members of his own party may not let that sail through as proposed.

Given that K-12 spending makes up a huge part of the state budget, how much to give schools and under what conditions is likely to attract more discussion this month as lawmakers on the state finance committee hold public hearings around the state starting Monday.

Several school funding issues to debate include:

Tying aid increases to Act 10 compliance. Lawmakers are questioning whether Walker's budget too broadly penalizes school districts for not adopting some of the provisions of his 2011 limits on unions and public-worker benefits.

Walker would offer schools per pupil increases in state aid of $200 in the first year and an additional $204 in the second year. But to get it, the Republican governor is requiring districts to comply with his Act 10 law of 2011, which called for cuts in public workers' health benefits.

In a hearing of the Legislature's budget committee Thursday, legislators asked whether the budget requirement would end up penalizing some districts that had actually found savings in their employee benefits.

State Superintendent Tony Evers, an ally of Democrats, and Rep. John Nygren (R-Marinette), the committee's co-chairman, both expressed concern that some districts could be passed over for funding increases even if they had made health care cuts.

"It's not recognizing the efforts that school districts have made," Evers told Nygren. "There's all kinds of ways that districts have met their obligations to cut health care costs."

Nygren said he was concerned that the budget proposal might actually amount to a higher standard for districts than the one contained in Act 10.

Act 10 called for a 12.6% employee premium contribution for participants in the health plan the state runs for its own and local government employees. School districts outside that plan did not have to compel employees to contribute 12.6% toward the premium, and as a result they could achieve health care savings through other actions such as plan or provider changes.

Milwaukee Public Schools, for instance, requires contributions ranging from 2% for staff who make less than $25,000 and who choose high-deductible plans to 14% for higher paid staff on higher-cost plans.

Walker defended his proposal last month, saying it's consistent with what taxpayers experience in their private sector jobs and that there’s nothing to stop districts from rewarding employees in other ways.

"Most people in this state pay something for their...health insurance. Districts that choose not to do that are out of whack with where the rest of the state is at,” he said.

Whether Walker's aid increases are sustainable. Assembly Republicans led by Speaker Robin Vos (R-Rochester) are questioning whether the state can afford all of Walker's school spending proposals.

Vos said in an interview that if the economy doesn't continue to grow, the state might not have enough revenue to fund Walker's proposals in the second year of the budget. He said Republican Senate Majority leader Scott Fitzgerald (R-Juneau) and other Republicans had expressed similar concerns.

Meanwhile, Walker is encouraging citizens to contact their legislators and support his plan for increasing K-12 education spending by $649 million.

"The people of Wisconsin want their state government to invest in student success and in building a strong workforce. This is what the governor heard at his listening sessions across the state. He will fight for his historic investment in K-12 education," Walker spokesman Tom Evenson said this week.

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Walker held a tight lid on education spending in his last budget while preparing his unsuccessful run for president in 2015, which prompted his fellow Republicans to offer schools some more aid later in the budget process.

Now the situation has reversed: Walker has been pressured by outstate Republicans who heard from their own local superintendents, especially ones in rural areas, about being strapped for cash. And all signs point to Walker running for re-election. Offering public schools more dollars could garner more support from the electorate.

But in this budget, Vos and other Republicans are eager to see more money flow to transportation infrastructure projects statewide and in their home districts. Vos is open to a gas tax increase, which would generate additional revenue, but Walker has said he would veto a gas tax increase. Without additional revenue, the money lawmakers want for roads might have to come from somewhere else in the budget, such as K-12 education.

Expanding school vouchers. Walker did not propose expanding private-school vouchers as part of his budget plan, but Fitzgerald, the leader of the Senate, has signaled that lifting the enrollment limits on private schools in the statewide voucher program will "absolutely" be part of the budget discussion among lawmakers, according to the Associated Press.

Lawmakers could also expand the statewide program by lifting the income limit, which would allow more middle-class children to participate. Right now, students can qualify for statewide vouchers if they come from families making at or below 185% of the federal poverty level and are entering kindergarten, first or ninth grades.

The financial impact of expanding the program would depend on who participates. If more students switched from attending public schools to using a voucher in private schools, it could save the state money because vouchers cost taxpayers less than the state and local per pupil cost in public schools. But if more students already in private schools switch to using vouchers, taxpayers would pay for more students who were never publicly funded.

How much do students cost in public vs. voucher schools?

Conservatives and liberals have argued recently about the amount of Wisconsin taxpayer funding that supports students in public vs. private voucher schools. At the state budget hearing Thursday, Sen. Leah Vukmir (R-Wauwatosa) asked Dave Loppnow, assistant director of the Legislative Fiscal Bureau, to clarify that question. Loppnow estimated total taxpayer dollars per the average public-school pupil in 2018-'19 would be about $12,400. He estimated total taxpayer dollars per voucher pupil would be about $7,850.