Janesville school budget gap widens
The Janesville School Board has jumped out of the budget frying pan and into the fire.
The board recently took a stab at balancing the district’s $114 million budget by making $4 million in cuts.
Then came news that the district and teachers union had come to a tentative settlement, which includes pay raises that will cost about $1 million more than is included in the still-unapproved 2010-2011 budget.
Adding to the problem: Expenses for the district’s self-funded health insurance plan are expected to be about $1 million higher than originally budgeted.
Pennington said the district’s consultants recommended more money for insurance because of a spike in claims last year.
The district had budgeted for a 7 percent increase for insurance. The additional $1 million would mean a 15 percent increase over the 2009-10 level, Pennington said.
For a full story, read Tuesday's Janesville Gazette, read online in the Gazette’s E-Edition or check back at GazetteXtra.com.

Sep 1, 2010 at 9:31 a.m.
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Unions killed the Janesville economy, period. The School Administration needs to cut jobs and expense at their own level. All summer long I have driven past the administration building and counted an average of 24 cars in that parking lot on weekdays. (Not the school district cars, another expense) Who are all these people working full time jobs when school is out? Nobody seems wants to do more with less but there is no choice with all the money going for raises and health benefits.
Sep 1, 2010 at 8:50 a.m.
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Not trying to answer for jewels45 - just understand his/her comments and I think I see where they're coming from. QEO sets limits.
"Since the QEO became law in 1993, teachers have been effectively guaranteed annual salary and benefit increases of at least 3.8 percent."
"Most teachers receive annual increases in salaries and benefits of more than 3.8 percent. The Wisconsin Association of School Boards’ database shows that total compensation increases averaged 4.2 percent in 2007-08 and 4.1 percent in 2008-09."
Taking into consideration the comment of over 30% raise over 10 years. 3.8% (minimum) X 10 years certainly does equate to over 30% and that's compounded. so yes, on the surface, I would have to agree with jewels45. If I am incorrect, please let me know.
source: http://www.wasb.org/news-and-issues.html...
Aug 31, 2010 at 7:04 p.m.
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jewels45: Do you even know how ignorant your comment is? If so you would not have posted it!
bignik: You're even more ignorant for agreeing with her. What if someone makes a comment bashing teachers, you just agree even if its validity is completely ridiculous. Use your own brain! 30% are you kidding me!!
Aug 31, 2010 at 3:13 p.m.
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What's your source on that, jewels?
Aug 31, 2010 at 2:31 p.m.
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I agree 100% Jewels! OINK OINK!
Sigma you nailed that one right on the head!!!
Aug 31, 2010 at 1:07 p.m.
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Just remember in the past 10 years the teachers have received raises totaling over 30% while the private sector has enjoyed a meager 8.8%. The more you feed a pig the more it wants.
Aug 31, 2010 at 12:15 p.m.
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Unions protect workers that kill the economy... Ya i guess your right its not the actual union killing anything...just who they protect....lazy employees demanding outragious wages and the most luxurious work free working conditions.
Aug 31, 2010 at 12:11 p.m.
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Janesville's business manager made a grave error in not developing an intermim budget with SOME kind of pay raise included. That is just plain irresponsible and now they have to scramble even more.
From what I can tell from the budget summary posted in Monday's paper, Janesville has liberally dipped into their Fund 10 budget over the last few years, $3 Million from it in 2008-2009, planned deductions of nearly $300K for 2009-2010 and thus far, no plans to dip into it in 2010-2011. While it's never a good way to balance a budget by routinely dipping into the rainy day fund, nobody can argue that budget monsoons are brewing for JSD these days. The Fund 10 balance right now is $27.1 Million, which, give or take, calculates to 25.7% of their budget. I don't know what their policy is regarding fund 10 balance, but the recommended Fund 10 balance in Wisconsin is 15%. Evansville has succeeded in increasing their Fund 10 balance from 7% in 2006 to about 10% this year. They have a policy to increase it by a half-percent a year until it reaches 15% in 2020, when the high school debt is paid off. They struggle every year with sticking with the policy because they are looking down the road to when new facilities may be needed and the higher the fund balance, the better the borrowing terms. Janesville has done a great job in cutting spending by 21% over the last 3 years. They need to keep scrutinizing and should dip into their Fund 10 to balance the budget. Even if the entire $2 million is taken from the fund balance, they'll still have 23.7% in their fund balance.
Aug 31, 2010 at 12:10 p.m.
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janesvillean - I'm sure the employees at Prent, Goex, Generac, Hormel, Kerry Ingr., Freedom Graphics, Abitec, Amtec, F&F, Spacesaver, Verlo etc. would be happy to know they will never own homes, pools, SUVs, and take hunting and fishing trips up north. It just so happens that most of the business' in this area that are gone, were union - did you forget that? - These are the people that are buying all the "toys" that the brotherhood members are now selling because their jobs no longer exist.
Aug 31, 2010 at 11:32 a.m.
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When is this B.S. going to stop ? We are sick and tired of the unions in this town. They keep sucking the people dry, and some of you are still pro union. The school board is not fiscally responsible, maybe they cannot add a column of numbers.Start trimming programs NOW.
DO YOUR DARN JOB FOR THE PEOPLE WHO YOU SHOULD REPRESENT. They are called taxpayers
Aug 31, 2010 at 11:15 a.m.
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The increase in health is due to actual claims, not HealthCare Reform. That will kick in once they renew their plan, probably January. Now, if they had kept the million dollar overage they had a couple of years ago, then this won't be an issue. But I don't recall if the teachers got their way and had that money dispersed to them. All it takes is one bad accident, and a million is gone. There is no way to exactly know how much money in claims is going to be any given year.
Aug 31, 2010 at 11:12 a.m.
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Union jobs gave Janesville a middle class that could own homes, pools, SUVs, and take hunting and fishing trips up north. It's really a shame that people forget that.
Aug 31, 2010 at 11:02 a.m.
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Ahh...........Lets put those shiny thinkin' caps on here folks! Remember that your state funded educational programs go off of student enrollment. So if you think little johnny and susie are gonna be sticking around town if we cut extra curriculars, you are insane! Edumuncayshun in Jaynesvile, Weescosun weel b reelie bahd 'dare dun wont bee too many folks'a stickin 'round town den.....
Aug 31, 2010 at 10:46 a.m.
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A million dollars higher for the health insurance? That is the growing problem that is happening since Obamacare was forced upon us and it is affecting his supporters in education that he just bailed out. Beware school employees, you will be dumped into this plan.
Aug 31, 2010 at 10:18 a.m.
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Cut out all unnecessary budget items. Sports, drama, and anything else that is a waste. If the kids want to participate in these things, their parents should be footing the bill, not the entire district. There's money to be found, but the people that want their programs like these are also the ones that balk at higher taxes or the thought that they might have to pay for their kids extra curricular activities themselves. Talk about lining up for government cheese. Sheesh.
Aug 31, 2010 at 10:11 a.m.
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By the way, unions do not kill the economy. They reward the lazy, useless, beer drinkin, pot smokin jerks that want everything handed to them on a golden platter....Unions are good for those that work hard and show up every day sober and healthy!!
Aug 31, 2010 at 10:10 a.m.
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Amen to that civil!!!!
Aug 31, 2010 at 9:35 a.m.
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Greed rules.
Aug 31, 2010 at 9:21 a.m.
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They should've thought about budget cuts(or stop increased spending) as soon as GM closed. That created a huge domino effect of businesses closing and unemployment. It doesn't take a rocket scientist to figure that out.
Aug 31, 2010 at 9:16 a.m.
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Its true.... Unions kill the economy.
Aug 31, 2010 at 9:10 a.m.
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Have we had enough yet?? They just dont get it. They are suppose to be educated but are the dummest people on earth. No matter how much they get they always want more, so I say KNOCK it OFF.l
Aug 31, 2010 at 8:29 a.m.
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Give up the GM garbage......
Aug 31, 2010 at 8:29 a.m.
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Teachers= the new GM....different union...same outcome
Aug 31, 2010 at 8:09 a.m.
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Lay off and pay cuts! GM wages done exist in this town anymore.
Aug 31, 2010 at 8:09 a.m.
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My son was told that he doesn't get his own text book because there aren't enough to go around. He has to share a book while at school (Craig) and he can't study with a book at home. I am sure this has nothing to do with falling ACT test scores......
But at least the teachers got their raises
Aug 31, 2010 at 7:55 a.m.
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Anyone else getting raises out there besides teachers? I'm very glad to have a job and be working. But I haven't gotten a raise (not even a cost of living adjustment) in over 3 years.
Aug 31, 2010 at 7:16 a.m.
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Same story at every level of government, spending what we don't have. Until the centrists of this country can kick out the minority far right and far left and put in politicians who can make the tough decisions to cut spending and balance the budget this will continue until the government at all levels collapse under their own largess.
Good thinking settling that contract without knowing how we will pay for it.
Aug 31, 2010 at 7:13 a.m.
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Maybe they should know how many apples are in their bag BEFORE they pay for them. This seems like backwards planning to me. What kind of greedy teachers are out there to accept more money when we are facing cuts? They feel too secure and notice that not one of them has said that they did not want the raise, however minimal it was.
Aug 31, 2010 at 7:01 a.m.
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Just think how good all the kids are going to be with money being taught by all these money and budget oriented people. I cant wait till the next generation takes over......wow. People today already have accepted that debt is the norm and getting ahead is most unheard of.
Aug 31, 2010 at 6:44 a.m.
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Maybe the school board members should dig into there own pockets and come up with the difference. They don't seem to have much trouble giving away our money!
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