Breakdown of Costs

BREAKDOWN OF “STRETCH” TOTAL COSTS

Details with Assumptions

• PISA Tests annually beginning in Year One in 378 WI Districts that have a high school, total of WI high schools = 900 x $9,000 = $8.1million prorated over 2 years= $4.1 million p.a.= $4.2 million.
• Additional + Current. 11,000 more ‘Teachers’> including 4,000 Councilors/DPI Coaches/music & ar teachers with 30% pay increases > & p.a CPI minimum adjustments {3.0% p.a.} …currently 3,000 total WI schools, 64,000 ’teachers’ going to 75,000) = current $90,000 per ‘teacher’ (including $20K benefits x +30% (after certification) = $117,000 x 75, 000 after YEAR Four = $8.775 billion (with 100% certified). 
• MTEL-like Tests for every ‘teacher’ $ (MA>$155 per attempt x 2 attempts x 75,000= $23.25 million -3 years = $7. 75million p.a.; By Year Three all participating 4-K-3 ‘teachers’ certified; After Year Three in Years 4-15>15% new teachers p.a. =26,000 x $155 x 2 attempts= $8.0 million p.a.
• ”Bullying Counselors & additional Music/art Teachers “(See additional ’11,000’ teachers included.)
• Other School Staff (Current 110,000>leaner/AI by 15% fewer staff= 93,000 with Year 4 >10% raise to $ 6.5 MM …with p.a. CPI increases {3%}):Staged as schools enter STRETCH program = $6.14 billion
• “FUN” Required Courses for all ‘teachers’ $2,000 prorated over 5 years (75,000 x $1,000 -: 5 = $15,000
• Additional 2(+)classrooms for slow & disrupting & “halfway’ students>with decreasing students, secured from present facilities.
• 'Add-ons’ (not essential for STRETCH but certainly very supportive)
  • Career & Technical Education facilities ( Manual Arts/CTEs) 875 high schools x 50,000SF /AI) over ten years x =$28mm +: 10 = $1.9 Billion
  • Civic course (5th & 10 grades) >current+ staff
  • PE Required Course Year 1>current staff
  • Additional Music/Art Teachers 2000 schools (of 3,129) Age 4 -Grade 10 x $117,000= $887 MM **

TOTAL Expenses: $17.8 billion

** = Assume 3 additional teachers for 2,500 schools (75%)x $117,000= $887MM

Sooo.. Current total K-12 WI Costs = p.a- $ 15 billion

Current Sources of WI Education roughly: $15,000 per student x 997,308 students = total cost of $ 15 billion .…. >State aids (a)= 48% ($7.2 billion)....Property Tax 41% ($ 6.2 billion) …Federal Aid (b) 6.8% ($1 billion)…Local Revenue (c) 4.6 % ($ 0.7 billion)

a = State monies directly to district

b = Especially for special ed, school meals, etc.

c = Funds via local property tax levies, other local fees

New WI “Stretch” Total Sources $17.1 - 17.8 billion p.a.(about $2.2 - 3.0 billion over “current” total)

One Possible Source of Income for “STRETCH” WI K-12 Education roughly:

*Federal AID = $1.0 billion

* State Aids = $7.2 billion

* State Property tax = 0

* Local Revenue = 0.7 billion

* Additional Sales Tax for K-12 education = 8.83 billion (+ current $7.83 billion)

TOTAL Revenue for K-12 = $ 17.8 Billion

This # will be annually adjusted per Social Security CPI change. Changes current sales tax revenue from 7.83 Billion to $16.06 billion or 1.7x. It increases the current sales tax on given items from average 5% to 11%..i.e at Louisiana’s top levels.

Adjustment in citizen payment of sales taxes: $2,600+= more impact per household vs. “current estimated $2,000 per current sale tax payment per household. Slightly doubles cost for consumer; however the 69% of household who own their WI home will net balance out. For the 30%, households of students may not be a huge issue. However, for the some 20% of WI lower income family households that do not own their homes, the doubling of sales tax will be most difficult without other subsidies/adjustments. If really executed, “Stretch” should enable their /grandchildren n 20 years to move into the middle class….Tradeoffs!

Comments: Difficult tradeoffs. The sales tax increase will clearly especially adversely affect lower income WI families. That is the regressive aspect of the STRETCH program revenues. But if lower income WI children within this period , due to STRETCH & high-quality education for their children, move into the middle class, that’s a very progressive long term side of the STRETCH program. Tradeoffs!

NOTE: Just how specifically the K-12 “STRETCH” is funded is not part of basic “Stretch” The above method is just one suggested way. Other proposals may be better…The key is that the State must decide TO FUND fully “STRETCH TARGETS over 25 years and in whatever way works!

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