Madison Superintendent Dan Nerad Advocates Additional Federal Tax Dollar Spending & Borrowing via President Obama's Proposed Jobs Bill

Matthew DeFour:

Madison Schools Superintendent Dan Nerad publicly touted President Barack Obama's stalled jobs proposal Monday, saying it would help the School District pay for millions of dollars in needed maintenance projects.

"We either pay now, or we pay more at a much later date," Nerad said at a press conference at West High School, which is due for about $17.4 million in maintenance projects over the next five years.

A School Board committee is reviewing maintenance projects identified in a 2010 study by Durrant Engineers that said the district may need to spend as much as $83.7 million over five years on projects not already included in the budget.

The committee is expected to make recommendations early next year. Nerad said the committee hasn't decided yet whether to recommend another maintenance referendum. A 2004 referendum authorizing $20 million over five years ran out last year.

Federal tax receipts, spending and deficits, fiscal years 2007-2011, billions of dollars:
Receipts$2,568$2,524$2,104$2,162$2,303

	Outlays	Deficit	Deficit as a % of GDP
2007	$2,729	$161	1.2%
2008	$2,983	$459	3.2%
2009	$3,520	$1,416	10%
2010	$3,456	$1,294	8.9%
2011	$3,600	$1,298	8.6%

Source: Congressional Budget Office.

The most recent Madison School District maintenance referendum spending has come under scrutiny - though I've not seen any further discussion on this topic over the past year.

Related: Wisconsin state budget is bad for kids by Thomas Beebe:

"It'll be OK," Gov. Scott Walker said last winter when he announced a budget that snatched away more than $800 million in opportunities to learn from Wisconsin public school kids. "I'm giving you the tools to make it work."

Well, the tools the governor gave local school districts are the right to force teachers to pay more toward their retirement, and the option to unilaterally require educators to kick in more for their health care. The problem is that the tools, along with any money some of them might have left over from federal jobs funds, are one-time solutions. These tools can't be used again unless school districts ask teachers to give up even more of their take-home pay.

By law, all school districts have to balance their budgets. They always have, and always will. That's not the point. The point is that the governor has hijacked the language. Educational accountability isn't about balancing the budget, it's about giving kids opportunities to grow up into good, contributing adults. That's not what Gov. Walker wants to talk about.

Reuters:

The red line, here, is median real household income, as gleaned from the CPS, indexed to January 2000=100. It's now at 89.4, which means that real incomes are more than 10% lower today than they were over a decade ago.

More striking still is the huge erosion in incomes over the course of the supposed "recovery" -- the most recent two years, since the Great Recession ended. From January 2000 through the end of the recession, household incomes fluctuated, but basically stayed in a band within 2 percentage points either side of the 98 level. Once it had fallen to 96 when the recession ended, it would have been reasonable to assume some mean reversion at that point -- that with the recovery it would fight its way back up towards 98 or even 100.

Instead, it fell off a cliff, and is now below 90.

Posted by Jim Zellmer at October 18, 2011 7:47 PM
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