Racine Unified Official: No Surprises in Governor's Budget, But Numbers Are 'Staggering'

Gov. Scott Walker’s budget plan contained no big surprises, but its economic potential is still troubling, said Racine Unified School District Board member Don Nielsen.

“There was nothing really new, but he (the governor) did confirm a few things for us,” said Nielsen, who chairs the School Board’s audit committee.

The major impact is a reduction of about $550 per pupil in general state education aid to local school districts. For Racine Unified, that’s an $11.5 million cut.

The School Board last week reviewed 2011-12 district budget projections that indicated a deficit of about $5 million to $8.4 million. Those projections included potential state aid reductions that would be offset by new state requirements that unionized Racine Unified employees contribute 5.8 percent of their salaries toward the state pension fund and contribute at least 12.6 percent of their health insurance premiums.

Racine Unified on Tuesday opened contract negotiations with representatives of six bargaining units representing teachers, educational assistants, custodians, secretaries and other employees. The negotiations are to replace the current contracts that expire June 30.

In its initial offer to the unions, the district proposed a two-year salary freeze, contributions of 5.8 percent toward pensions and increases in health insurance contributions to bring the employee share from an average of 2 percent to the proposed state requirement.

“We should balance out a significant amount of the aid reduction by working with our bargaining units. But, if he (the governor) cuts deeper, we’ll have to go back and look for more places to cut,” Nielsen said.

Although the governor’s budget proposal does not specifically address federal education aid that is administered by the state, Nielsen remains concerned that Racine Unified could be adversely affected by cuts to programs that address school integration and districts with high poverty rates.

Nielsen said he understands the state’s tight budget picture, but believes that local governments—particularly employees—are being hit extra hard.

“While there wasn’t a lot that surprised me, the figures are staggering,” he said. “This (budget) is putting a terrible burden on everybody but him (the governor),” he says “It’s putting the decisions on school boards, county boards and common councils all over the state.”