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Sparsity aid is good news that could be much better

School districts throughout Wisconsin — 123 or them to be exact-got some good news last week. The Department of Public Instruction announced $14.95 million will distributed in sparsity aid as part of the 2009-11 state budget.

According to a DPI press release , the categorical aid was specifically targeted to help small, rural districts provide educational services.

These funds were part of the 2009-11 state budget. To be eligible, districts must have no more than 725 students, less than 10 students per square mile, and have more than 20 percent of those children qualify for reed or reduced-price school meals (a measure of poverty).

WAES agrees with 31st District State Senator Kathleen Vinehout (D-Alma), legislative champion for increasing the sparsity payment, "This popular categorical aid will help maintain the lifeblood of our rural communities-our schools."

The September 2010 allotment will be $3.5 million more than the previous year, however, it falls far short of what is needed to keep small, rural schools and communities vital and viable. The DPI press release itself notes that districts who qualified were actually eligible to receive $15.9 million in sparsity aid, which means that even these payments were prorated at 94 percent.

Even at 100 percent, WAES’s research shows that wouldn’t be enough. Small, rural school districts-especially those that have sparse student population-have higher per-student costs just because of their size. For that reason, we recommend that K-12 districts with fewer than 10 students per square mile and enrollments of fewer than 1,500 students (and K-8 or UHS districts with fewer than 10 students per square mile and enrollment of fewer than 1,500 students so long as the UHS district covers at least 600 square miles) should be in line for extra resources.

The Wisconsin Adequacy Plan (WAES adequacy school-funding reform model), establishes a baseline or foundation level of funding for every student in the state. For those districts that qualify for the sparsity aid-and understanding that the smaller a district is the more help is needed-WAES actually recommends a bump in the foundation itself:

  • For districts below 250 students, 50% of foundation
  • For districts of 250-499: 40% of foundation
  • For districts of 500-749: 30% of foundation
  • For districts of 750-999: 20% of foundation
  • For districts of 1000-1,249: 10% of foundation
  • For districts of 1,250-1,499: 5% of foundation

Again, we agree with Sen. Vinehout, "Even with the additional dollars, more and more school districts are running into severe financial difficulties" because of the state's school-funding system. In other words, the way we fund schools now isn’t working. It is unsustainable as costs continue to outstrip the state’s willingness to invest in education and the property owners’ ability to pay taxes.

So, WAES will continue to work for comprehensive reform of the system. Along with partners all over the state-including those in the School Finance Network and DPI State Superintendent Tony Evers, for instance-we will demand the next Legislature and Governor put this issue high on their priority list.

And, WAES will also continue to fight in the short-term for “A Penny for Kids”. Piled on top of the ill effects of 17 years of a broken funding system is the revenue crisis for school districts and kids created in the last state budget. For example, 20 of the same districts that will get bumps in their sparsity aid will lose under next year's equalization aid disbursement (see first story) to the point they see a net loss between the two of $709,503.

Once again, "A Penny for Kids" meets the crisis in the state's small, rural schools while buying time for the comprehensive finance reform referred to by Sen. Vinehout.


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