STATE BUDGET DEVELOPMENT UPDATE The legislature’s joint finance committee (JFC) has scheduled public hearings around the state to gain input in the governor’s budget proposal. It is important to note that the Governor’s proposed $650 million investment in public schools is not a done deal. A divide among lawmakers about how to deal with the Governor’s proposed state budget bill threatens to significantly reduce or even potentially eliminate the increased state aid the governor has proposed for schools. Some lawmakers are actively pushing a plan for the Legislature’s budget–writing Joint Finance Committee (JFC) to reject the governor’s proposal and instead build the 2017-19 state budget from the current budget—called the “base budget” in Capitol lingo. At stake are the substantial increases the governor has proposed for public schools, including increases in per pupil aid, aid targeted specifically to rural schools and funding from school-based mental health services, to name a few. Working from the base budget rather than Gov. Walker’s proposal would erase the proposed funding increases for public schools as a starting point for budget discussions. This would put public schools back to square one in the budget debate. If you follow the budget developments this is an important piece of information because it shifts the possible headlines if the JFC wants to reduce the governor’s K-12 spending plan. Bottom Line for Cashton  The proposed per pupil categorical aid increases of $200 per pupil in 17-18 and $204 per pupil in 18-19. The predicted additional revenue for Cashton School District is $110,000 in 17-18 and another $110,000 in 18-19.  The proposed aids designed to support rural schools. An increase of $100 per pupil in Sparsity is a predicted increase of $65,000 in 17-18. In addition, the district also may qualify for increases in high cost transportation aid and broadband expansion grants. These investments recognize the unique costs associated educating student in rural areas and support our efforts to provide high-quality education opportunities to our students. SOURCE: WASB HEALTH INSURANCE CONTRIBUTION REQUIREMENT Members of the JFC have concerns about the requirement for school districts to certify to DPI that employees of the school district will be required to pay at least 12% of all costs and payments associated with employee health care coverage. Specifically, legislators pointed out that there is no law that requires the 12% contribution, making it tough for the state to force district’s to adhere to the provision. The JFC did not vote on the provision. FEDERAL BUDGET PLAN’S IMPACT ON EDUCATION The U.S. Department of Education faces a 13.5 percent cut ($9.2 billion) under the Trump administration federal budget blueprint, a plan that also boosts charters and vouchers. The Washington Post reports that the so-called “skinny budget” plan would downsize or eliminate many grant programs, including grants for teacher training, class size reduction, and after-school and summer programs. The cuts would be coupled with a historic investment — $1.4 billion — in charter schools, private schools and other school-choice initiatives. Education Week’s Politics K-12 blog reports that the plan would eliminate Title II spending. In addition, the 21st Century Community Learning Centers program would also be scrapped, eliminating “after-school and extended-learning programs.” The Wall Street Journal quotes U.S. Education Secretary Betsy DeVos saying, “The budget places power in the hands of parents and families to choose schools that are best for their children by investing an additional $1.4 billion in schoolchoice programs.”

Bottom Line for Cashton Federal funding is the 3rd largest revenue source for Cashton (Behind state aid and the local tax levy). Title I Program: This program is designed to support the achievement of economically disadvantaged students/schools. Trump’s plan calls for a $1 billion increase in Title I funds, but stipulates that this increase should be dedicated to promoting and increasing school choice. We are not envisioning that Cashton’s allocation will increase, the increase will be dedicated to urban areas where school choice is a hot button issue. Due to federal sequestration during the Obama administration as well as local poverty numbers decreasing, the District has already been sustaining significant cuts to our Title I program. YEAR 2010-11

ALLOCATION $467,201.00

2011-12

$471,368.00

2012-13

$454,869.00

2013-14

$410,093.00

2014-15

$368,941.00

2015-16

$334,558.00

2016-17

$358,761.00

PERCENT CHANGE 0.89% -3.50% -9.84% -10.03% -9.32% 7.23%

Title II-A Program: The purpose of Title II-A is to increase the academic achievement of all students by helping district increase student access to high quality teachers. Cashton has used these funds to support the reduction of class sizes in grades K-3. The Trump budget calls for the elimination of this program because, according to the Trump administration, there is no evidence that the program is effective. This would result in a $62,000 cut in Cashton’s federal revenue. Our CCLC program is not directly at jeopardy because three years ago we no longer qualified for the grant because our poverty levels were too low. At that time, we scaled back the program and absorbed the costs with District revenue.

YEAR

ALLOCATION

2010-11

$82,564.00

2011-12

$67,533.00

2012-13

$66,909.00

2013-14

$62,855.00

2014-15

$62,462.00

2015-16

$62,445.00

PERCENT CHANGE

-18.21% -0.92% -6.06% -0.63% -0.03%

 Page 2

-0.58% 2016-17

$62,080.00

2017-18

$0

-100%

Special Education Program: The IDEA grant is responsible for approximately 20% of revenue in our SPED program. Our current best prediction is that federal IDEA funding will be maintained at its current level. SOURCES: WASB, EDUCATION WEEKLY PROPOSED FEDERAL HEALTHCARE IMPACT ON STUDENTS AND SCHOOLS Under its current configuration, the new federal healthcare bill modifies how the federal government will fund the Medicaid program. The bill enact a per capita cap on federal Medicaid payments to states, thus jeopardizing the Medicaid funding school receive to provide healthcare services to students with disabilities. The healthcare services provided to students with disabilities and students in poverty in schools include speech-language pathology, occupational and physical therapy, mental and behavioral health services, vision and hearing screenings, diabetes and asthma management, wheelchairs and hearing aids, among others. SCHOOL START DATE MANDATE Although many schools are passing resolutions to repeal the school start date mandate, key legislative leaders are opposed to the repeal, and it appears unlikely that it will happen.

 Page 3