Basic Information on MMSD

Budget & Tax Levy

Inflation (nationally):  2008-2012 = 6.64%

MMSD Facts for years 2008-09 through 2012-13:

  1. Enrollment increased:   10.1%
  1. Federal aid DECREASED:  -5.6%
    1. Shortfall (if federal aid had increased at the rate of inflation) = -$3,840,691
  1. State aid increased:  6.8%
    1. Shortfall (based on inflation and enrollment growth) = -$8,980,974
    2. State aid/pupil DECREASED by 3.3%
  1. TOTAL SHORTFALL IN FEDERAL & STATE AID by 2012-13 =  -$12,821,665
  1. MMSD expenditures (excluding debt service) increased 13.8%    3.14% less than what inflation plus enrollment growth would predict.
  1. Cost/pupil (excluding debt service) increased by 3.39%  - just a little over half of the amount predicted by inflation.
  1. The district tax levy increased 10.1% - about the same as enrollment increase.
    1. If state and federal aid had kept pace with inflation, the tax levy would have increased by 4.5% - significantly less than the rate of inflation.
  1. Madison property tax payers are paying a greater proportion of the cost of K-12 education:  in 2008-09 – 62.5%; in 2012-13 – 65%.
  1. Comparing mil rate with neighboring districts (rates not available for 2012-13)

Surrounding 13 districts: 13.3% increase

  1. Mil rate increases reflect a combination of MMSD tax levy and home values. If home values in 2011 had equaled those in 2008, the mil rate would have been about $11 rather than @11.52, but home valuations had decreased by 4.8%.

STAFF GIVE-BACKS

Over the past two years, the staff give-backs noted below, many the result of Act 10, have allowed MMSD to increase spending on behalf of students (more than 10%) without significantly increasing the property tax levy. District staff have shouldered the burden. During the two years that staff have lost take-home pay, the levy has increased only about 1.7%, much less than the rate of inflation (5.29%).

2011-12 Budget Savings

Staff salary freeze (incl. admin.)  4,812,000
WRS contribution  11,462,000
Total  $ 16,247,000
   

2012-13 Budget Savings

Staff salary freeze (including admin) $6.5 - $9.5 Million*
WRS contribution   11,462,000
WRS increased contribution    1,200,000
WPS (elimination) 5,000,000
Total $ 24.2M – 27.2M*
Total Savings Over Two Years   $ 40.45M - $43.45M

(These numbers come from the 3/23/11 memo to the Board: “Superintendent’s Recommendations to Address Projected 2011-12 Budget Shortfall,” MMSD website information for 2012-13 budget and Responses to BOE questions, 5/20/13)

* The wide range of salary savings is caused by a lack of specific information in the second year about specific staff retirements, salaries of new hires, etc. Basically, it comes down to not being able to compare apples to apples in the second year. However, the total savings are definitely significant – in excess of $40M!

 


Want More information?flower

To become a GRUMP, send us an email to supporters@madcitygrumps.com. If you have questions about the budget shortfall, email info@madcitygrumps.com