Madison Government School District “Final” 2015-2016 Budget (5.2MB PDF):

Page 39: 2013-2014 Total Spending: $408,806,234.75

2014-2015: $411,671,817.67

2015-2016: $454,414,941.93 or $16,724.26 per student (27,171 students)

The United States spends $12,401 per student nationally, about 34% less than Madison.

Much more on open enrollment, here.

Joseph O’Sullivan & Katherine Long.

The budget gives a 3 percent cost-of-living raise to K-12 employees over the next two years, plus an additional temporary 1.8 percent increase that expires in 2017. It proposes a slight increase in health-care benefits for K-12 employees, but not enough, the Washington Education Association said, to keep up with rising costs.

Ordway said he expects lawmakers to suspend Initiative 1351. Still, he called the budget “one of the best education budgets in the history of the state.”

Rich Wood, spokesman for the Washington Education Association, said the one-time 1.8 percent pay increase does little to make up for the six years that the state did not pay teachers regular cost-of-living adjustments. Besides a 3 percent cost-of-living increase over the next two years, he said, there is no increase in base pay for teachers.

“People are already joking, and saying, ‘It’s like a tip,’ ” he said.

Seattle’s 2015-2016 $753,100,000 budget [PDF] for 51,175 students and 6,072 staff.

Much more on Madison’s 2015-2016 budget, here.

Madison School District Administration Slideware (PDF).

Much more on the $413,703,424+ 2015-2016 Madison School District budget, here.

Notes and charts from the Districts’ most recent 2015-2016 budget document (5MB PDF):

Our 25,364 students are served by 4,076 Teachers & Staff (6.22 students per District employee).

Salaries and Wages
For 2015-16, MMSD has collective bargaining agreements in place with its represented employee groups, including teachers, aides, clerical, and custodial staff. The teachers’ collective bargaining agreement is based on a traditional salary schedule, including compensation components for additional years of service (step movement) and additional professional development (lane movement). In addition,

the Board approved an increase of 0.25% per cell for all teachers (cell increase). Together, the additional compensation for step movement and cell increases provides an average increase of 1.75% to employees, plus a reserve for lane changes of $400,000, for a combined budgetary impact of $4.5 million on district salaries. This budget proposal includes funding for these wage and salary commitments. MMSD’s other employee groups will experience similar increases in compensation.
Health Insurance

MMSD offers an attractive employee benefits plan to its employees. The district spends over $61 million per year on health insurance premiums, which is approximately 15% of the total district budget. Each year, the risk of rising health care costs creates significant budget uncertainty for the district: each one percent increase in health insurance rates costs MMSD about $610,000. The implementation of the Affordable Care Act brings additional fees and responsibilities for employers, including the requirement to offer affordable and valuable coverage to all employees who work 30 or more hours per week, starting July 1, 2015. Although the exact impact of this requirement is not yet known, MMSD could be required to provide coverage to approximately 120 employees not currently eligible for health insurance benefits.
The district contracts for health insurance with three Madison area HMOs. Group Health Cooperative (GHC) has covers approximately 60% of MMSD employees, while Dean and Unity each cover approximately 20%. Negotiations are continuing for July 1, 2015 rate renewals. The district, in collaboration with employee representatives, are working to minimize the budget impact for 2015-16. An update on the current status of health insurance rate renewals will be presented to the Board in May.

This year, MMSD launched its employee wellness program, which was developed with the input of the employee unions. A team representing a broad spectrum of employees has been selected to design the program activities and support district wellness. In addition, employees are asked to sign up for biometric screenings and health risk assessments, which will provide information that can be used to develop programs that meet the needs of MMSD employees and help curb long-term health care cost increases.

Mitch Henck Comments on Madison’s Spending and Tax Practices:

Page 8 is illustrated above, with Madison’s per student spending noted, not completely to scale.

36 Page PDF Slideware Presentation.

I’ve not seen a total spending number published in awhile (The last number I’ve seen was approximately $402,000,000) for 25,305 full time students and 1,962 4K participants. That’s roughly $15K per student, about double the national average.

Much more on the Madison School District’s 2015-2016 budget, here.

Related: Attrition Report. Equity based staff reduction summary.

Madison School District (PDF):

A. Alignment to Strategic Framework- In our vision to make every school a thriving school that prepares every student to be ready for college, career and community, these budget resources support the district’s goals and priorities as defined in our Strategic Framework.

B. More equitable use of resources- As opposed to equal funding, which provides the same level of support to each school, equitable distribution of resources takes into account the needs of each school based on enrollment and student demographics.

C. Transparency in budget development- Transparency in the budget process creates greater awareness and accountability. For internal purposes, it enables central office departments and schools to take more ownership of their goals, priorities, and plans for improvement. For external audiences, transparency results in a more readable and informative budget document.

While working towards achieving these goals, the district is also committed to minimizing the tax levy and demonstrating strong stewardship of our public funds, as well as complying with legally required mandates.

Powerpoint slides (PDF). I’ve not seen total spending published for some time. The long lamented “Citizen’s Budget” has yet to be resurrected.

Background:

Sources:

• General and Categorical Aid – Payments to School Districts
• WISTAX Facts & Figures
• Madison Schools 2013-2014 June 10, 2013 Budget Discussion Document (PDF)
• Wisconsin State Tax Based K-12 Spending Growth Far Exceeds University Funding
• Up, Down & Transparency: Madison Schools Received $11.8M more in State Tax Dollars last year, Local District Forecasts a Possible Reduction of $8.7M this Year – March, 2013. The June 10, 2013 District budget document (PDF) fails to mention the previous year’s large increase in redistributed State of Wisconsin tax dollars:
  

  Like all Wisconsin school districts, MMSD relies upon a state-local funding partnership. The actions of one partner greatly impact the other partner. The 2013-14 MMSD budget anticipates a major funding loss for MMSD (a loss of $8.7 in equalization aid) which shifts the funding burden onto the local property taxpayer.

The charts reveal several larger stories:
First, the State of Wisconsin “committed” to 2/3 K-12 funding in the mid-1990’s. The increase in redistributed state tax dollars is apparent. [Wisconsin Legislative Fiscal Bureau: State Aid to School Districts (PDF)]
Second, Madison’s substantial real estate growth during the 2000’s supported growing K-12 spending while reducing the property tax rate (the overall pie grew so the “rate” could fall somewhat). The real estate music stopped in the late 2000’s (“Great Recession) and the tax rate began to grow again as the District consistently raised property taxes. *Note that there has been justifiable controversy over Madison’s large number of tax exempt properties. Fewer exemptions expands the tax base and (potentially) reduces individual homeowner’s taxes.
Third, Madison has long spent more per student than most public schools.
Fourth, the District’s June 10, 2013 budget document fails to address two core aspects of its mission: total spending and program effectiveness. The most recent 2012-2013 District budget number (via a Matthew DeFour email) is $392,789,303. This is up 4.4% from the July, 2012 District budget number: $376,200,000. The District’s budget has always – in my nine years of observation – increased throughout the school year. The late, lamented “citizen’s budget” was a short lived effort to create a standard method to track changes over time.
Fifth, the June 10, 2013 document does not include the District’s “Fund balance” or equity. The balance declined during the 2000’s, somewhat controversially, but it has since grown. A current number would be useful, particularly in light of Madison’s high property taxes.
Sixth, I took a quick look at property taxes in Middleton and Madison on a $230,000 home. A Middleton home paid $4,648.16 in 2012 while a Madison home paid 16% more, or $5,408.38. Local efforts to significantly increase property taxes may grow the gap with Middleton.
Finally, years of spending and tax growth have not addressed the District’s long term-disastrous reading results. Are we doing the same thing over and over?

SIS:

In 2013, Madison Superintendent Jennifer Cheatham said “What will be different, this time“? The Superintendent further cited Long Beach and Boston as beacons in her Rotary speech. However, based on recently released 2015-2016 budget slides (PDF) and Molly Beck’s summary, it appears that the same service, status quo governance model continues, unabated.

2013, SIS

“The thing about Madison that’s kind of exciting is there’s plenty of work to do and plenty of resources with which to do it,” Mitchell said. “It’s kind of a sweet spot for Jen. Whether she stays will depend on how committed the district is to continuing the work she does.”

The District seeks increased tax & spending authority soon, perhaps in November. Ideally, a complete budget picture – with related outcome changes over time – would be easy to find and understand. Unfortunately, that is not currently the case. Boston publishes a handy 2 page summary (pdf).

The Beaver Dam, Wisconsin School District embraces direct mail with a glossy postcard:

Beaver Dam’s 2015-2016 budget information is available here (PDF). I could not quickly find the District’s current enrollment on their website, but NCES posted their 2013-2014 data: 3,642.

It appears that Beaver Dam plans to spend roughly $36,866,065.77 during the 2015-2016 school year. That’s about $10,122 per student.

Madison plans to spend more than $17,000 per student during the same period or 68% more…..

Madison’s long term, far above average spending has not addressed it’s long term, disastrous reading results.

Kevin Crowe:

Median household income fell by a significant margin in two-thirds of Wisconsin counties from 2009 to 2014, according to figures released Thursday by the U.S. Census Bureau.

In Milwaukee County, the median income fell by 10.3% to $43,385. Waukesha County, which had the highest median income in the state at $76,319, saw a 7.1% drop. Washington (-5.2%), Ozaukee (-7.7%) and Racine (-7.9%) counties all experienced declining incomes, as well.

Learn more about Madison’s $454M 2015-2016 budget, which spends around $17k per student, far above the national average.

Doug Ericsson:

The financial ramifications are significant. A school district gaining a student receives a share of the student’s home district’s state aid to help pay for educating that student. The Madison School District will lose about $6.5 million in state aid this school year because of open enrollment, the report said.

“Obviously, I am not pleased,” said Superintendent Jennifer Cheatham. “I want Madison to be the first choice for families. That’s what we’re working on.”

She said that while the report is disappointing, it will motivate her and others to work harder.

Overall, the district’s enrollment this school year is 25,231 in grades K-12, down 0.3 percent, or 74 students. There are an additional 1,778 students enrolled in 4-year-old kindergarten.

Much more on Madison’s $454,414,941.93 2015-2016 budget and open enrollment, (about $17K per student!).

Despite spending far more than most K-12 government schools, Madison has long tolerated disastrous reading results.

More, here.

Chris Rickert:

District officials were able to close about a third of the budget deficit by negotiating rate freezes with the three insurers it contracts with for employee health coverage — which is great, but isn’t going to put any more of those 79 positions back in the classroom.

The district, like local taxing bodies throughout Dane County, is wont to blame all its money woes on four years of tight-fisted and damaging Republican control of state spending.

It’s a fair point, although my experience over 15 years of covering local government is that cities, counties and school districts are quite capable of experiencing budget woes no matter who happens to be in charge at the Capital.

And who’s responsible for budget woes probably matters less than who suffers their effects.

Much more on Madison’s 2015-2016 budget and its long term disastrous reading results, here. Note that Madison has long spent more than double the national average per student.

Pat Schneider:

“I will consider contributions to health care, depending on what we see in terms of costs and the budget,” Burke said. “But we need to look at compensation in its entirety to make sure we remain competitive while we are accountable to the taxpayers.”

The school district is in the process of preparing to hire a consultant to conduct a study of employee compensation, she said.

Representatives of Madison Teachers Inc. say the fully paid health care premiums are a benefit bought with concessions on salary increases over the years.

That’s exactly why it’s so important to look at the district’s compensation as a whole, Burke said.

“We want to make sure the school district is a place that can attract quality people. That’s why the survey will not only compare us to other school districts, but also to other professions,” she said.

The Madison Metropolitan School District’s three major health insurance providers — Group Health Cooperative, Dean Health Plan and Unity Health Insurance — each agreed to hold the line on premiums next year. That helped the school district hold the line on a major expense — more than $61 million annually — in a budget round that saw operating expenses up nearly 11 percent as state aid dropped.

Madison’s 2015-2016 budget and its long term disastrous reading results, here. Note that Madison has long spent more than double the national average per student.

In 2013, Madison Superintendent Jennifer Cheatham said “What will be different, this time“? The Superintendent further cited Long Beach and Boston as beacons in her Rotary speech.

However, based on recently released 2015-2016 budget slides (PDF) and Molly Beck’s summary, it appears that the same service, status quo governance model continues, unabated.

A focus on Adult Employment:

“Beware of legacy practices (most of what we do every day is the maintenance of the status quo), @12:40 minutes into the talk – the very public institutions intended for student learning has become focused instead on adult employment. I say that as an employee. Adult practices and attitudes have become embedded in organizational culture governed by strict regulations and union contracts that dictate most of what occurs inside schools today. Any impetus to change direction or structure is met with swift and stiff resistance. It’s as if we are stuck in a time warp keeping a 19th century school model on life support in an attempt to meet 21st century demands.” Zimman went on to discuss the Wisconsin DPI’s vigorous enforcement of teacher licensing practices and provided some unfortunate math & science teacher examples (including the “impossibility” of meeting the demand for such teachers (about 14 minutes)). He further cited exploding teacher salary, benefit and retiree costs eating instructional dollars (“Similar to GM”; “worry” about the children given this situatio

Are Administrators Golden?

The Single Best Idea for Reforming K-12 Education; ” Stop Running the system for the sake of the system.

Dirty little secret of US ed spending: Since 1950, “US schools increased their non-teaching positions by 702%.”; Ranks #2 in world on non teacher staff spending.

“Reverting to the mean“.