State technical colleges are sounding the alarm about a bipartisan spending package moving through the Legislature that would give the state greater control of colleges’ purse strings.
The bill doesn’t give technical colleges any additional money. Instead, it shifts more of its existing funding from local property taxes to the state.
Both the Assembly and Senate were scheduled to vote on the bill May 13.
Democratic Gov. Tony Evers and Republican legislative leaders – Assembly Speaker Robin Vos, R-Rochester, and Senate Majority Leader Devin LeMahieu, R-Oostburg – have called it a compromise that offers something to both sides of the aisle. Democrats would get more money for K-12 schools. Republicans would receive property and income tax relief.
About a third of the technical college system’s $1.7 billion in revenue already comes from state aid, according to 2022-23 data by the nonpartisan Legislative Fiscal Bureau. Another 28%, or $476 million, comes from local property taxes, and 14% comes from tuition and fees.
The bill would shift another $50 million of the colleges’ local property tax revenue to state aid. The 16 technical college presidents in a joint statement warned this would create a stronger reliance on state funding, “which is neither predictable nor reliable.”
Some policymakers aim to remove technical colleges entirely from the propety tax levy. A Republican bill in 2023 proposing a state takeover of technical college funding won approval by a committee but didn’t make it to the governor’s desk.
Technical College System President Layla Merrifield said moving to an entirely state-funded model would reduce schools’ accountability and responsiveness to local community and employer partners.
Oshkosh Truck, for example, was in need of specialty worker training after landing a federal contract to build military vehicles. Fox Valley Technical College heard the major employer’s request and built a new facility in just eight months because it had local revenue it could tap.
Compare the college’s experience to the University of Wisconsin-Madison, where a widely supported engineering building was held up during the state budget for political reasons.
“I think it would be a mistake to sever that tie between technical colleges and their local communities, and allow Madison to make all of the decisions about what programming is most important,” she said.
Technical colleges are required to provide services inherently local in nature, such as firefighter training and basic adult education for people who didn’t earn their high school diplomas. Schools cannot charge tuition for these services, which is why they are part of the property tax levy.
Technical colleges receive a small percentage of the total property tax levy, state data show. In 2023-24, it accounted for about 4% of the total, down from 7.5% in 2005.
Kelly Meyerhofer has covered higher education in Wisconsin since 2018. Contact her at kmeyerhofer@gannett.com or 414-223-5168. Follow her on X (Twitter) at @KellyMeyerhofer.
This article originally appeared on Milwaukee Journal Sentinel: Should tech colleges have taxing authority? Tax relief bill sparks concern
Reporting by Kelly Meyerhofer, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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