From spooneradvocate.com: “Lawmakers look to lessen technical colleges’ reliance on property taxes” — by Shemane Mills, WPR -Concerns about property taxes have lawmakers looking at other ways to fund the state’s 16 technical schools. They’re also considering changes that could reduce local control of technical schools.
Historically, the property tax has been the largest source of revenue for the Wisconsin Technical College System, a sore point for some taxpayers and the Wisconsin Realtors Association. In the last budget, the state put $406 million towards technical schools in an effort to shift some of the system’s funding away from property taxes.
The WRA’s Joe Murray supports the state increasing its share of funding to 45 percent, but urged lawmakers to consider funding technical schools in the future without any property taxes.
“From our experience, after watching this debate over the last 30-35 years, the only way you ultimately start and keep property taxes going in a certain direction is to take stuff off the property tax,” said Murray.
That leaves the question of where money for technical schools would come from, according to Josh Dukelow from the Fox Cities Chamber of Commerce.
“The same people who pay property taxes to support technical education pay municipal taxes to support law enforcement, pay school taxes to fund primary education, pay income taxes to fund state services, and pay sales tax when they shop or dine,” said Dukelow. “To maintain our premier educational resources in Wisconsin, we will have to pay one way or another.”
Dukelow also expressed concern about possible changes in governance of technical schools, saying a more centralized approach wouldn’t be as quick to meet the needs of local business. He said each area of the state has different workforce needs that may not be suited for state control.
May 22, 2014
From wisopinion.com: “A vision for 21st century tech colleges” — By Rebecca Kleefisch – We should celebrate our sons and daughters who become nursing assistants and machinists just as much as those who become lawyers and doctors. That was my message this weekend at Waukesha County Technical College’s commencement ceremony, when hundreds of students walked across the stage and stepped into new careers and new opportunities.
Governor Walker said the same thing this past January in his State of the State address. He and I know that the twin drivers of our state’s economy are manufacturing and agriculture. Both of those industries rely heavily on technical colleges for expertise and employees. A strong Wisconsin economy needs strong tech colleges in every part of the state, staffed by top-notch teachers and filled with cutting-edge technology. Our tech colleges are a good investment for students, a good partner for employers, and a good value for taxpayers.
The students graduating from WCTC are entering into careers offering the promise of prosperity. An associate’s degree graduate in Aircraft Electronics can get jobs with a starting salary of $47,000. A one-year technical diploma in brick-laying and masonry leads to jobs with a median starting salary of almost $43,000. A dental hygiene grad starts with a salary just shy of $50,000. In fact, for the past 15 years, the tech colleges have placed at least 86 percent of their graduates into jobs within six months of graduation. In other words, tech colleges are equipping our workers with the skills they need to get the high-paying jobs they want and the economy offers.
One reason these jobs pay so well is because our Wisconsin employers are actively searching for employees with the skills and experience to fill jobs across our economy, especially in our agriculture, health care, and manufacturing sectors. It’s vitally important that technical colleges gear their services to the jobs available in their communities today and in the future. That’s why I was so impressed by the Fab Lab at Gateway Tech, for instance, which offers itself as a resource to students, faculty, and local manufacturers to try new ideas and products.
Tech colleges need to stay connected to both the community and to the state as a whole. The Governor’s Blueprint for Prosperity, which invested the state’s $911 million surplus, included $406 million in property tax relief through the tech colleges. At Madison Area Technical College, for instance, state funding jumped from 10 percent to nearly half of MATC’s budget. With the property tax caps in place, that will drop MATC’s local tax levy by almost half, saving the owner of an average Madison home about $200.
We need to continue investing in our technical colleges because of the crucial role they play in our communities and our economy. For instance, given all the technical advances discovered by our tech college staff and students, I’d like to see new programs that help commercialize these innovations as new products and processes for use in business.
My address at WCTC on Saturday was my 37th stop at a technical college since taking office. All those visits reflect the high priority that Governor Walker and I place on our tech colleges. Commencement provides each of us, as friends, family, and neighbors of the graduates, an opportunity to celebrate their accomplishments and to appreciate their new careers building a stronger Wisconsin.
April 18, 2014
From greenbaypressgazette.com: “NWTC budget up slightly, but tax levy plummets” — Gov. Scott Walker’s property tax cuts mean a big change in the way Northeast Wisconsin Technical College balances its books.
The community college’s general fund budget for next school is expected to increase by about 1.8 percent from $77.2 million this year to $78.7 million for 2014-15.
But NWTC’s local tax levy will drop by about half, from $59.3 million to $27.6 million, under the Republican governor’s plan to use the state’s projected $977 million surplus to cover property and income tax cuts. The measure, approved by the state Legislature and signed by Walker last month, sends $406 million to technical colleges to reduce property tax levies.
That means the owner of a home valued at $150,000 in NWTC’s district would pay about $115 for that portion of their tax bill, compared with $240 last year.
A public hearing on the budget proposal is set for next month.
“It didn’t give us more money,” NWTC President Jeff Rafn said of the changes. “It just swapped state money for local money.”
NWTC will receive about 42 percent of its funding from the state, compared with 9 percent currently, he said.
“In my view it is good and properly re-balances things,” Rafn said. “The down side would be if they would eliminate property taxes altogether. Then we would become a state institution and would lose local control.”
Some people have expressed concerns that technical schools can raise taxes yet are governed by appointed bodies rather than elected officials, Rafn said. He noted the state’s 2013-15 budget limits property tax increases to value added by new construction in municipalities within the school’s district in the past year, which is anticipated to be less than 1 percent for NWTC.
“Property taxes aren’t going to go up,” he said. “But taking away local control would hamper our ability to make quick local decisions.”
Rafn cited expansion of nursing programs to meet higher demands at NWTC as an example.
The state Legislature has formed a Special Committee on the Review of Wisconsin Technical College System Funding and Governance — co-chaired by Republican Rep. John Nygren of Marinette — to review the process.
As part of next year’s budget, NWTC is looking to increase some offerings, including programs in fire-medic, therapeutic massage and software development.
The school also will expand some programming, such as its health and wellness program and joint programs with area high schools.
It will use grant money to fund a variety of learning coaches and tutors.
The school plans to eliminate a financial institution management program which is losing enrollment, but Rafn said students enrolled in the program still could finish.
April 18, 2014
From journaltimes.com: “Gateway property taxes cut in half” — BURLINGTON — The property taxes local residents will pay for Gateway Technical College next year are to be cut in half thanks to an act of the Legislature passed this year, according to officials and Gateway’s proposed 2014-15 budget presented Thursday.
The total amount taxpayers are budgeted to pay next year for Gateway is $28.98 million, down from $60 million this year.
“Homeowners will see a reduction in their local property taxes which gives them the relief they are looking for and Gateway has been able to demonstrate good performance, so we’ll see an increase in the revenue streams to support ongoing training,” Gateway President Bryan Albrecht said following a budget presentation Thursday at the Gateway Technical College District Board meeting in the HERO Center, 380 McCanna Parkway, in Burlington.
Under Act 145, the property tax relief act passed this year, the state will pick up a large portion of what local property taxpayers usually pay for technical colleges throughout the state, explained Conor Smyth, a spokesman for the Wisconsin Technical College System. It doesn’t mean a new pool of money for technical colleges, he said. It means local taxpayers will pay less, while statewide taxpayer dollars, now part of the state surplus, will be more heavily relied upon.
The surplus is the result of holding down spending, Act 10 savings, and the growing economy, according to state Rep. Robin Vos, R-Rochester.
Change in state funding
Statewide, local property taxpayers used to pay 68 percent of the cost of technical colleges. That is now reduced to 33 percent, and the amount the state pays is going from 9 percent to 44 percent, Smyth said.
For Gateway, approximately $32 million is being moved from local property taxes to the state. That means about $83 in property tax relief for someone with a $100,000 home.
Vos, the Assembly speaker, said the biggest complaint he hears from constituents is about taxes and this provides relief, but state Rep. Cory Mason, R-Racine, said instead of simply swapping out property taxes more money should have gone to technical colleges for worker training, and he had proposed a bill that would have done that.
Mason said he voted against Act 145 not because he thinks the property tax cut is bad, but because technical college funding needs to be restored to prior levels.
“All the money they put into the technical college went to property tax relief, nothing from that bill went for job training or getting people back to work … If jobs really is the No. 1 issue, we should be investing in things that get people back to work.”
Albrecht said the college is getting additional state funding through a new performance-based calculation that rewards the school for doing well. The college has also applied for an additional $2.7 million through what is being called the Blue Print for Prosperity, according to Albrecht. That includes money for more boot camps, among other things.
Additional budget items
Overall, Gateway’s proposed total budget is down from $161.62 million to $156.76 million. Albrecht attributed that in part to Act 10, which essentially eliminated collective bargaining for public employees. It allowed Gateway to make changes to benefits such as retirement and health insurance, he said. Also he said over the last three years there were approximately 85 retirements, which contributed to the college’s savings because employees who had been with Gateway used to receive longevity pay based on the number of years they were with the college. Now he said instead of budgeting for longevity pay, they have funds budgeted for merit-based pay increases.
“We certainly want to be an employer of choice and recognize employees for the great work they are doing,” Albrecht said.
March 18, 2014
From lacrossetribune.com: “Walker promotes worker training; signs $35.4 million bill” — Gordon Murphy is still mastering his new trade, but on Monday he gave Wisconsin’s governor a quick lesson on operating a computer-controlled tool mill.
Murphy, a 29-year-old machinist and welder, is one of a dozen students enrolled in the machine tool operation program at Western Technical College, where Gov. Scott Walker stopped on a tour promoting new worker training bill.
The bill, which Walker signed into law Monday, will provide $35.4 million for worker training at places like WTC.
The Republican governor, seeking a second term this fall, touted the state’s falling unemployment rate — down to 6.1 percent in January, the lowest jobless rate since November 2008.
“More people are working, more employers are hiring and personal income is up,” he said. “We want that trend to continue. But one of the things we hear time and time and time and time again from employers is that one of the things they’re looking for to grow — not just to fill positions, but to grow — is even more well-trained, well-prepared, skilled employees.
Walker said spending on worker training will not only help fill job openings, but it also will attract more employers.
Western President Lee Rasch said the region’s greatest demand now is for welders, information technology specialists and behind the scenes workers in health care administration.
Electromechanical workers, who maintain the sophisticated machines used by workers like Murphy, are also in demand, Rasch said, though there aren’t necessarily waiting lists for any of those programs because of a lack of public awareness.
The new Wisconsin Fast Forward funds are designed to help technical colleges work through backlogs, give high school students access to vocational training and enhance employment opportunities for people with disabilities.
Rasch said WTC has submitted a $1.9 million proposal, which he said would be used to fund one-year certificate training rather than degree-based programs that would require ongoing funding.
That could mean training for 180 to 190 potential workers, he said.
Walker said the state should focus on advanced manufacturing in order to recapture some of the manufacturing jobs that were outsourced to China and Mexico in the 1990s.
“That’s why it’s so important for people, whether they’re coming right out of high school or coming back to support a new career, for them to have spots available in our technical colleges,” he said, “because they’re teaching them cutting-edge technology.”
Murphy said he landed a job at Chart a couple of years ago after starting the program at Western. He returned to school this year in hopes of landing a better job in the company’s tool room.
If successful, Murphy said he’ll be earning 15 to 20 percent more.
“It’ll pay for itself the first year on the job,” he said.
March 7, 2014
From weau.com: “Tax cuts could change tech school funding” — A proposed tax cut could affect the way area technical colleges are funded.
Earlier this week, the state senate approved Governor Scott Walker’s plan to use the state surplus to cover $504-million in tax cuts.
Under the changes technical colleges would get more than $400-million from the state’s budget surplus- meaning homeowners would pay less toward funding schools like Chippewa Valley Technical College.
“From our point of view as a system it really brings us some balance in the system in terms of where our funds come from,” Wisconsin Technical College System President Morna Foy said.
Foy says the changes to buy down homeowners property taxes using the state’s surplus would mean more balance when it comes to funding schools.
“With this change happening in 2015 we would go back we would have greater balance state aid would account for 45-percent of our operating costs as opposed to 10-percent,” Foy explained.
What the cuts would mean for the average home owner and tax payers is more money in their pocket.
“For a typical working family in the state it means their property taxes will be down more than 100 dollars and it means there withholding the amount they see in their paycheck will actually go up by over 500 dollars through the end of the year,” Governor Scott Walker said.
Governor Walker says in addition to the shift in funding due to the budget surplus, the state will also give a one-time payment of $35-million to technical colleges to help cut down on the amount of time it takes to enroll in classes.
“There was $35-million available in the Wisconsin Economic Development budget and we shifted that into helping our technical colleges buying down our wait list,” Walker said.
Despite the increased money to technical colleges, area Democrats say it still doesn’t make up for the deep cuts that were made in the past year.
“It doesn’t address a few things. The first is it doesn’t address the fact that there was $72-million cut last year,” State Representative Dana Wachs said.
The tax cut bill now heads to the state assembly for a vote on March 18th. If approved it would head to the governor’s desk for his signature.
March 5, 2014
From jsonline.com: “Scott Walker’s tax cut plan passes Senate, likely to become law” —Madison — Senate Republicans Tuesday narrowly passed Gov. Scott Walker’s $541 million tax cut proposal in a vote that guaranteed the cuts will become law.
The tax decreases — the third round of cuts by Republicans in less than a year — passed 17-15 with GOP Sen. Dale Schultz of Richland Center joining all Democrats in voting against the proposal. The proposal now goes to the Assembly, which passed a different version of the tax cuts last month with two Democrats joining all Republicans in supporting it.
With growing tax collections now expected to give the state a $1billion budget surplus in June 2015, Walker’s bill will cut property and income taxes for families and businesses, and zero out all income taxes for manufacturers in the state.
Senate Majority Leader Scott Fitzgerald (R-Juneau) said his party was delivering on a promise to hold down taxes for the people of the state.
“The bottom line is what a great day for the state of Wisconsin — to finally be out of what was a dark time for Wisconsin,” Fitzgerald said, referring to the recent recession.
GOP lawmakers and Walker will use the unexpected windfall for the state as an occasion to trim overall state spending slightly for the next three years rather than increase it.
The votes on the tax cuts, which have split almost entirely along partisan lines in the Legislature, highlight the growing split between the two parties’ visions for the state.
Walker’s initial tax cut proposal would have drawn down the expected surplus and left the state budget in somewhat worse financial position in the future as measured by one commonly used method. To win over a holdout GOP senator concerned about the state’s finances, Walker agreed last month to cut state spending by $38 million to help offset the tax cuts.
Also Tuesday, the Senate voted unanimously to pass a second bill to increase spending on worker training by $35.4 million through June 2015.
Walker’s plan for the surplus prioritizes the tax cuts and a roughly $320 million overhaul of income tax withholding over calls from Democrats to decrease more than $1 billion in borrowing, strengthen the state budget and offset past cuts to schools. Democrats said that was a better approach to running state government and boosting the state’s economy.
“The property tax burden absolutely weighs down the citizens of our state,” Sen. Jennifer Shilling (D-La Crosse) said. “But you know what else weighs down the citizens of this state? Not having a job.”
Under Walker’s bill, the average income tax filer would receive a tax cut of $46 in April 2015 and the typical homeowner would save $131 over the existing law on this December’s bills, according to the Legislature’s nonpartisan budget office.
Also, the governor has separately had his administration alter income tax withholding rates so workers have less taken out of each paycheck — about $520 a year for a married couple making a total of $80,000 a year — starting in April.
“The more money that we give back to the taxpayers, the more money they can spend or save as they wish and the more our economy will grow,” said Sen. Alberta Darling (R-River Hills), co-chairwoman of the Legislature’s budget committee.
The bill would also lower income taxes for factory and farm owners by $36.8 million over the current two-year budget and $91.3 million over the following two years.
GOP supporters of this manufacturing tax cut in the bill see it as fuel for one of the state’s main economic engines.
Democratic opponents see it as a giveaway with a dubious payback to some of the richest people in the state, averaging about $800 for roughly 30,000 tax filers in 2015.
The deal between Walker and GOP senators would also use what is essentially an accounting maneuver to keep a chunk of the surplus — more than $100 million — in the state’s main account rather than shifting it to a rainy day fund.
Mary Burke, a former state commerce secretary and bicycle company executive running against Walker, has said the state should use about half of the surplus to set aside more money in the rainy day fund and reduce the state’s $2billion in new borrowing through June 2015. She would use the remainder for property tax relief and worker training programs.
Burke’s plan for property tax relief and separate plans put forward by Assembly and Senate Democrats would all funnel more money toward a state credit for parcels with a home or business on them. That would ensure low- and middle-income homeowners see bigger tax cuts than they would under Walker’s plan.
Republicans have said this so-called first dollar tax credit provides no relief to those who own undeveloped land and could draw a legal challenge to the credit if it is increased again.
Senate Democrats Tuesday offered their own plan for the budget surplus that would:
■ Provide a one-time property tax cut of $500 million through the first dollar credit. That means homeowners wouldn’t get the tax decrease in future years.
■ Double the transfer of money to the state’s rainy day fund by adding $228.7 million.
■ Provide $100 million more to the Wisconsin Technical College System and additional funding for rural K-12 schools and special needs students to offset past cuts to those areas.
■ Not provide the tax cut to manufacturers and not cut down on the amount of extra income taxes that the state is withholding.
The proposal would cut the state’s budget deficit in the next two-year budget to zero, according to the Legislative Fiscal Bureau.
“It’s hard to look past the next election toward the long-term interests of the state,” Senate Minority Leader Chris Larson (D-Milwaukee) said. “Let’s transcend the politics.”