Wisconsin’s Budget Surplus Plan Faces Rejection Amid Concerns Over Technical College Funding
Wisconsin’s ambitious budget surplus proposal, which aimed to utilize the state’s $2.5 billion surplus for tax cuts and enhanced school funding, faced a significant hurdle this week. Despite initial agreements between Gov. Tony Evers and Republican leaders, the plan was rejected by the state Senate after passing in the Assembly.
The contentious proposal included a significant change for Wisconsin’s technical colleges. It sought to redirect nearly $50 million from property tax levies to direct state funding. This shift represented about 20% of the colleges’ annual property tax-derived funding.
In a strong opposition move, presidents of all 16 technical colleges in Wisconsin issued an open letter expressing concerns. They argued that the proposal merely moved funds “from one pocket to another” and warned of an increased dependence on state funding, which they deemed “neither predictable nor reliable.”
Wisconsin Technical College System President Layla Merrifield voiced concerns on WPR’s “Wisconsin Today” about the implications of cutting ties with property tax funding. “I think severing that tie completely would be a mistake,” she stated, highlighting the importance of maintaining local funding partnerships.
Kate Archer Kent: Can you give us some context of what a $50 million dollar shift would do — about a third of the technical college system revenue already comes from state aid. Would this $50 million shift to state aid be that impactful?
Layla Merrifield: “You might say, ‘Well, what’s the difference, as long as you’re still getting the same amount of money?’ I would say that, since our funding formula changed about 12 years ago, what we have seen is lack of investment in the technical college system year after year. This is a $1.7 billion system. It serves almost 300,000 Wisconsinites every year. We provide critical services at the local level and we received about a $3 million annual increase in the latest state budget. That is not nearly enough, in terms of our cost, to continue,” Merrifield explained.
Merrifield also discussed the operational changes being made to adapt to financial constraints, such as modernizing systems and automating business operations. However, she noted the dire impacts, including layoffs and increased waiting lists for students eager to enter high-demand fields.
KAK: You mentioned making serious changes to your operation to live within your budget. What does that look like?
LM: “We’re making quite a few changes that are internal. We continue to modernize our operations, automate our own business operations and try to integrate AI to be as efficient as we can possibly be,” Merrifield responded.
The rising demand for skilled workers in sectors like healthcare and manufacturing is putting pressure on technical colleges, which are struggling to meet these needs due to limited resources. Merrifield emphasized the bottleneck this creates for Wisconsin’s economy, impacting both public safety and employer needs, especially during the ongoing demographic challenges.
KAK: Enrollment has been rising at the state’s technical colleges, bouncing back since the COVID-19 pandemic. But it is still not up to highs of the mid-2010s. What is affecting your enrollments now?
LM: Merrifield cited multiple factors affecting enrollment, including the affordability of higher education and the critical services provided by technical colleges. The institutions play a crucial role in training essential workers like firefighters and police officers, with enrollment growth hindered by financial limitations.
Despite these challenges, technical colleges remain a vital pathway for nearly 300,000 students annually, seeking affordable education options. The need for expanded resources to accommodate more students and reduce waiting lists is evident, Merrifield stressed.
KAK: This echoes an open letter from the heads of Wisconsin’s 16 technical colleges. They argued that Wisconsin is facing significant workforce shortages across nearly every sector. You’re talking about years-long waiting lists in some areas. Other than increasing funding, what can the state do to remedy those shortages?
LM: “There are always things that you can do to try to become more efficient, but in many cases, those things are out of our hands. If it’s an industry accreditor that sets a certain class size, if it’s a lack of clinical slots for nurses or sonographers. Those are some critical areas where we continue to see growing demand, but without a proctor and a place for that student to go once it’s time for their workplace training, we cannot grow the cohort without the slots on the other end,” Merrifield concluded.
