Ten Thoughts on the Preliminary MMSD Budget Figures for 2012-13

Madison School Board Member Ed Hughes:

It's a little early for budget season, but Sunday's State Journal included an article by Matt DeFour that kicks off discussion of the school district's finances for 2012-13. According to the article, preliminary numbers indicate about a $12.4 million budget gap for the district.

Here are ten quick thoughts on these preliminary figures.

1. To make sense of budget gap talk, it's helpful to understand the assumptions behind the concept. Budget gaps are traditionally calculated within the context of a school district's state-imposed revenue limit authority. (For the sake of clarity, it's helpful to think of revenue limits as spending limits.). Costs are projected to go up by X millions, the school district is constrained by revenue limits to increase its spending by no more than Y millions, and the difference between X and Y is the measure of the gap that traditionally has to be bridged through painful budget cuts.

Posted by Jim Zellmer at February 7, 2012 2:56 AM
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