Education Funding

Wis. Supreme Court Upholds School Finance System

By Julie Blair — August 02, 2000 4 min read
  • Save to favorites
  • Print

Many in Wisconsin’s education community will be spending the remaining weeks of summer redoubling their efforts to persuade lawmakers to overhaul the state’s method of financing schools, following a long-awaited state supreme court decision that upheld the system as constitutional.

The justices ruled 4-3 last month to keep the finance system intact and, for the first time, defined the state’s responsibility in educating children. The 5- year-old Vincent v. Voight lawsuit had challenged both the funding disparities between rich and poor communities and the property-tax caps imposed on the state’s 426 school districts in the early 1990s. (“As Wis. Finance Ruling Nears, Protesters Set To Rally,” June 21, 2000. )

“So long as the legislature is providing sufficient resources so that school districts offer students the equal opportunity for a sound basic education as required by the constitution, the state school finance system will pass constitutional muster,” wrote Justice Patrick J. Crooks in the July 11 ruling.

The decision defined a “sound basic education” as “the opportunity for students to be proficient in mathematics, science, reading and writing, geography, and history, and for them to receive instruction in the arts and music, vocational training, social studies, health, physical education, and foreign language, in accordance with their age and aptitude.”

Plaintiffs in the lawsuit said they were discouraged by the outcome but were pleased that the court had chosen to outline the state’s responsibilities. The ruling means that the legislature must abide by specific standards, said Terry Craney, the president of the Wisconsin Education Association Council, the state affiliate of the National Education Association and among the plaintiffs in the case.

“We’re disappointed,” Mr. Craney said. “On the other hand, this looks to be one of the stronger standards set by any state.”

Lawyers for the plaintiffs said they were not planning further legal action at present, but could do so in the future if the state failed to comply with the ruling. The list of plaintiffs included 104 districts, as well as school administrators, teachers, parents, and taxpayers.

Debate Will Continue

Activists, district administrators, and education associations, meanwhile, are planning to bombard legislators with information on the issue this fall, said Teri Hanson, a co- organizer of a rally in June that drew thousands to the state Capitol to oppose the current system of school finance. Those groups are forming a coalition and planning a series of hearings around the state in October in the hope of eliciting testimony from local districts.

“We hope to show people in Madison that the discrepancies are real and that the system is not working,” Ms. Hanson said.

Ms. Hanson is one of many critics who say that problems originated in 1993, when the legislature agreed to reduce local property taxes by shifting more of the burden of financing districts to the state.

Under the law, the state began paying two-thirds of K-12 costs—an increase from 42 percent—and imposed spending caps tied to 1992-93 budget levels to ensure the state could cover future expenses. Districts may increase their budgets by 3.5 percent annually to provide for inflation, but must limit increases in teacher salaries and benefits to 3.8 percent annually.

Districts that want to raise spending beyond those limits must ask voters directly through local referendums. The state is obligated to pay two-thirds of any increases that voters approve.

The lawsuit contended that such a system causes problems because it caps spending even in districts affected by declining enrollments or increasing populations of students with special needs. It is also unfair to those districts that must provide expensive remedial aid to students who fail the state’s mandatory tests in grades 5 and 8, the plaintiffs claimed.

Furthermore, the plaintiffs argued that the funding system does not meet the constitution’s requirement that the state provide an educational system that is “nearly as uniform as practicable.” Children living in poor communities that raise less revenue from property taxes do not receive the same education as do children who hail from wealthier communities, the suit said, and state funding designed to ease those inequities is inadequate.

Gov. Tommy G. Thompson disputes such criticisms.

The supreme court’s decision “confirms that the state’s school funding formula is fair and equitable,” the Republican governor said in a statement.

Nevertheless, Kevin Keane, a spokesman for the governor, said Mr. Thompson is open to changing the formula, and will be guided by the recommendations of a commission on the relationship between the state and its localities he appointed earlier this year.

“We clearly need to do something, because none of the parties seem to be happy,” Mr. Keane said.

Related Tags:

A version of this article appeared in the August 02, 2000 edition of Education Week as Wis. Supreme Court Upholds School Finance System

Events

Teaching Profession K-12 Essentials Forum Supporting the New K-12 Workforce: What Teachers Need to Stay at School
 Join this free virtual event to discover what teachers say they need to feel supported to stay in classrooms for the long haul.
College & Workforce Readiness K-12 Essentials Forum Career and Technical Education Takes Its Next Big Step
Join this free virtual event to hear creative approaches to modernize CTE programs and navigate the shift away from a near-exclusive focus on "college preparedness."

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Districts Brace for the Unexpected as Federal Funding Troubles Linger
Last year's formula funding delay has prompted some districts to budget more cautiously.
7 min read
Cafeteria worker Nuria Alvarenga serves lunch to students through a service window at Firebaugh High School in Lynwood, Calif. on Wednesday, April 3, 2024. Demand for school lunches has increased after California guaranteed free meals to all students regardless of their family's income. Now, districts are preparing to compete with the fast food industry for employees after a new law took effect guaranteeing a $20 minimum wage for fast food workers.
A cafeteria worker serves students at Firebaugh High School in Lynwood, Calif., on April 3, 2024. School districts are increasingly uncertain about whether they can rely on federal education funds, $7 billion of which were delayed for weeks last July, prompting a more conservative approach to budgeting in some places.
Richard Vogel/AP
Education Funding Video Tornado Threats Are a Constant. But Funding for a Safe Room Is Lagging
A school district has waited four years and counting to begin work on a tornado shelter funded with federal dollars.
1 min read
Education Funding Congress Is Working on a New K-12 Budget. See What's Proposed for Key Programs
House lawmakers advanced major cuts to Title I and several competitive grant programs.
1 min read
CapHillJune05
Members of the U.S. House appropriations subcommittee for Labor, Health and Human Services, and Education adjourn after approving a 2027 spending bill in an 11-7, party-line vote at the U.S. Capitol in Washington on June 5, 2026. The spending bill from House Republicans cuts $1.6 billion from Title I.
Marvin Joseph/Education Week
Education Funding House GOP Endorses Education Cuts as Talks on Trump's Budget Begin
House appropriators want to cut Title I by 9%—a cut President Donald Trump hasn't proposed.
5 min read
A worker walks amid the Hall of Columns in the House of Representatives at the Capitol in Washington, on Oct. 4, 2023.
A worker walks amid the Hall of Columns in the House of Representatives at the Capitol in Washington, on Oct. 4, 2023. A U.S. House subcommittee has released a budget bill that includes billions of dollars in education cuts.
J. Scott Applewhite/AP