Possible Janesville School District tax hike looms

By FRANK SCHULTZ ( Contact )   Monday, July 25, 2011
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IF YOU GO


The Janesville School Board meets at 6:30 p.m. Tuesday at the Educational Services Center, 527 S. Franklin St. The agenda includes:

-- Discuss compensation for nonunionized staff, which includes administrators.

-- Possible vote on activating a district committee to consider changes to teacher-evaluation procedures, including the topic of incentive pay.

-- A report on the Boundary Lines Committee, which is considering the closing of an elementary school.

-- Discuss a proposal to allow adults to sit in on high school classes.

-- Possible vote on holding monthly school board listening sessions in the coming school year.

-- A workshop focusing on administrators’ contracts.

Photo

Dave Parr

Photo

Joe Knilans

— The Janesville School Board is in a sticky situation: While school taxes statewide will increase an average 0.6 percent this fall, Janesville might have to raise taxes at more than 10 times that rate to balance its budget.

The board is scheduled to discuss the situation when it meets Tuesday night.

Republican lawmakers cut aid to local governments in this year’s budget. They also enacted measures to hold down property taxes. Those measures will mean that school property taxes can rise by only 0.6 percent on average, said Brian Pahnke, assistant state superintendent for finance and management.

The Janesville School Board, however, will be able to raise its property taxes by 7.5 percent, according to calculations by district CFO Keith Pennington and confirmed by a Legislative Fiscal Bureau official.

Why Janesville is so far from average remains unknown. Pennington said the Department of Public Instruction made changes to a worksheet, issued July 1, that tells districts how much they can tax. A DPI spokesman said that any changes came about because of changes in the law.

Rep. Joe Knilans, R-Janesville, at first expressed doubts that taxes could be allowed to rise so high. After his own meeting with the Legislative Fiscal Bureau last week, however, he agreed that Janesville’s maximum school-tax hike would be close to 7 percent.

“It’s not up to me. It’s up to the school board,” Knilans said when asked why lawmakers are allowing Janesville taxes to rise so much.

Knilans, however, said Janesville would not have to raise taxes if the local teachers union would reopen its contract and agree to start paying the employee share of pension payments.

If teachers started paying the estimated 5.8 percent of their salaries into their pension fund, Knilans noted, that would save the district about $3 million.

Imposing that cost on employees was one of the “tools” that lawmakers gave to local governments when they cut state aid, Knilans said.

The district’s three unions, however, have contracts in place that protect them from any changes until July 1, 2013.

The teachers union declined two previous board offers to reopen its contract, saying it feared that doing so would nullify the contract under a new law that spurred large protests in Madison last winter.

Knilans had a provision inserted into the state budget bill that he says should change the union’s mind.

The provision would allow a union that had a contract in place before the new law was proposed to reopen its contract only for the purposes of making concessions on pension and health insurance.

Knilans said Friday that the provision provides an opportunity for the teachers to fill in this year’s budget gap and also to prevent layoffs for the 2012-13 school year.

Knilans pointed to a statement by the state teachers union last winter that teachers would agree to start paying for pensions if collective bargaining rights were preserved.

The provision preserves the Janesville teachers’ contract, Knilans reasoned, so they should be willing to make that concession now.

Knilans acknowledged, however, that those bargaining rights would disappear in 2013, and that’s the key fact for union President Dave Parr.

“The minute he gives us our collective bargaining rights back, we’re rushing to the table,” Parr said.

Knilans said the federal government also is asking federal workers to chip in for their pensions.

Parr said previously that the entire union membership would take up the issue when teachers return in late August.

If the union gave in on pensions, Knilans said, it could avoid layoffs of its members in 2012-13, which also is expected to be a tough budget year.

“They’re putting the school district and everybody else’s livelihoods on the line because of a waiting game on their part. I think that’s terrible. I think that’s something they shouldn’t be doing,” Knilans said.

Parr would not comment on Knilans’ suggestion that the teachers could save taxpayers by paying for their pensions.

The 7.5 percent tax increase would yield about $2.5 million. Pennington said an increase of $2.1 million would balance the budget if all other factors remain the same until late October, when the board will set the tax levy, but that would still be a substantial tax increase—about 6 percent.

One board member, Scott Feldt, is calling for the board to make another offer to get the teachers to reopen their contract. Another member, Kristin Hesselbacher, has called for taxing to the max.

The Knilans provision, meanwhile, is in effect only until late September, Knilans said.

RECENT JANESVILLE SCHOOL DISTRICT TAX LEVIES

Year Levy Increase (Decrease)

2001-02 $30.06 million (1.15%)

2002-03 $28.66 million (4.65%)

2003-04 $28.67 million 0.03%

2004-05 $30.79 million 7.39%

2005-06 $29.31 million (4.8%)

2006-07 $29.09 million (0.75%)

2007-08 $33.22 million 3.43%

2008-09 $34.21 million 2.98%

2009-10 $34.77 million 1.63%

2010-11 $35.88 million 3.19%

reader COMMENTS
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(50)
soup2k10
Jul 27, 2011 at 10:07 p.m.
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ty gma I kind of picked up on that when I moved back here in 07. I live in 12 oaks area and at times feel like surrounded by loan sharks. I always wave and say hi to folks but receive dirty looks back.

spiderpig
Jul 26, 2011 at 10:07 p.m.
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gma, are you attacking my rebuke of "heavy handed" government causing the depression or my observation that many public sector incomes were insulated from the prosperity of the 90's? Let me know where my inept education led me astray. Glad to hear your family reused/recycled. I do my own work around the house to save money, buy store brands, and clip coupons. So what, point for me? I also get a box to go when out to eat. Who cares? Given that you may have been clipped with the ruler during your education days, maybe you have a little bitterness for those who have turned their successful, extensive education into a family-supporting career.

gmaof3
Jul 26, 2011 at 9:11 p.m.
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sppig.... what ever opinion you have for past history, must have come from an inept education. Hmmm.... but I was there in the 60's / 70's through to the early 80's when I had first become a Mom. I remember my grandmother rinsing out baggies to conserve and reuse... Heaven forbid anyone must endure financial hardship, and rein in the "wants vs. needs"....

spiderpig
Jul 26, 2011 at 8:54 p.m.
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gma, I get that a lot of people are ups et that some jobs seem to have bit of insulation from the economy. Those same people who may have had a more prosperous 1990s told the teachers, cops etc. to take their meager raises because those were the jobs they picked. Now they are greedy for expecting a bit of insulation from today's economic situation as they did 15 years ago. How would you have it for the pubic sector say in another x years when tax revenues are up as the result of a thriving economy? Are you willing to have public sector compensation reflect that?

Also, my history book has stated that a lack of government oversight, not a heavy hand, combined with blind greed was largely responsible for the great depression. Sound familiar?

gmaof3
Jul 26, 2011 at 6:01 p.m.
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soup2k10... I honestly appreciate your posts. They are succinct and to the point.
I have seen values and expectations change over the past 3 decades though... "Its ALL about me, and get outta my way"! ME, ME, ME... Let someone else clean up the mess, as long as I get what I have coming.
My grandparents lived through the great depression... There are many similarities to our present situation. But the gov't had a heavier hand in things, in those days which caused the stock market to bust.
We are a nation of spoiled people. Entitlement is what we live by. (BTW... "fear" hates it when I use that term...)But it is true... Do what you have to do, as long as the "scat" doesn't drop in MY backyard!
We are a nation of greed and living beyond our means. Can't afford it? File bankruptcy... Don't wanna work? Get state aid... Seriously, our attitude as a nation of Americans has skewed from the principles we were based on.
Unions were started because of greed. Company owners raised a heavy hand and created sweat shops in which many people died.
This is definitely NOT the case anymore.... Unions have become an entity unto themselves. They are the "Fat Cats" that milk their drones for funds. Unions leave a bad taste for most. Its all about greed.
Just my opinion of course...

soup2k10
Jul 26, 2011 at 5 p.m.
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Yeah I think your right. My brothers company has no problem doing it I'd be ok with paying more but I know many folks in Janesville will be pinched. Our property tax would go up about $600 if the increase was implemented. I won't lie we could use that money for others things but after all the work I've poured in my home and my wife has done a ton with her clinic it would cost us much more to start over else where. I only hope this won't be a regular thing for city of janesville. There has to be better oversight on spending & some reductions should be made. Everyone is paying more on benefits I think its a good time teachers pay a little more but not such a large increase it causes tension. If only the federal government could reduce military spending & get more funding to programs to offset healthcare costs. They should also concentrate on better reimbursement to physicians particularly in states like Wisconsin. It is really hard to recruit doctors here. Other states down south are offering them compensation packages which in some cases are double what they are here.

skinnypuppy
Jul 26, 2011 at 4:39 p.m.
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leo - I respectfully disagree. The teacher salaries and comp packages have been available for look-up for quite awhile. Not to mention that during the last few years of school board and JEA negotiations, the pay and comp. were made public and even put on a comparison chart to other districts in our conference, showing that Jvlle teachers were nearly at the bottom compared to others. I am not a teacher, or in education in any way, but have followed the education of the children in this community closely, and NOTHING surprised me about what teachers are making. People I used to discuss this with, as I stated in my earlier post, KNEW what teachers made and called them stupid for going into a field that would never pay as competitively as many other jobs do that require the same educational attainment, continuing education, and has such an enormous impact on our society. I do not agree that teachers (public employees) should be the "scapegoat" for fixing everyone else's livlihoods, as Knilans regularly indicates in his public statements. While I don't think our teachers are poorly paid, nor do I think they are by anymeans overpaid.

leominpin
Jul 26, 2011 at 4:22 p.m.
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skinnypuppy, I think you are wrong and most people had no idea of the salary and compensation packages that teachers have. Like I said; any teacher's salary and benefits amounts can be looked up. You seriously believe that most of those salaries and packages aren't WAY more than most of the parents of Janesville students? The only teachers who don't have much are the brand new ones. You know, the ones that the union and senior teachers also don't care about?

li713
Jul 26, 2011 at 4:22 p.m.
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Does anyone know the dollar amount this increase would amount to for the median home in Janesville? I don't know what 7.5% equates to out of my pocket. If it's like $12, then just raise the damn taxes. If it's thousands, then they better make some more cuts.

analertcitizen
Jul 26, 2011 at 4:14 p.m.
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@soup- Actually the company that my husband had was quite small and successful. We were bought out by another company who operates it successfully to this day. My point though was not our business; it is the fact that if companies paid even the percentage that we paid- we wouldn't need to raise the individual's taxes.I don't believe that raising a 7.9% flat tax on corporations to 8% will hurt growth at all.

skinnypuppy
Jul 26, 2011 at 4:10 p.m.
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Also, it is interesting that Knilans mentions more layoffs next year. Isn't he aware that there are still vacancies in the Janesville District that need to be filled for this school year? Yet he is jumping the gun and discussing layoffs?

skinnypuppy
Jul 26, 2011 at 4:07 p.m.
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Everyone has known how teachers are compensated for many years, and knowing that, people "laughed" and said teachers KNEW they wouldn't be making money so they should just shut up. NOW, people state teachers are living the lavish lifestyle (NOT!). Such ridiculousness and scapegoating! The public doesn't want to have less take-home pay, but they feel it is okay for teachers to have less take-home pay. Pay that was held down in past years in order to KEEP good benefits with insurance and retirement.

leominpin
Jul 26, 2011 at 3:39 p.m.
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Yes, please add me to those who think the teachers should pay their fair share, which they do not and have not for many years. It's only now that most of the rest of us suckers have found out about exactly how much the teachers are compensated. It's public record and can be looked up, remember? And my dad taught in public schools for 42 years so I am well aware of the work and commitment involved in the job. And as for looking out for your own kids first? Fine, that's exactly what I am attempting to do. beaglelover is right, more people (not teachers) will have a hard time keeping their homes.

beaglelover
Jul 26, 2011 at 3:19 p.m.
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So much for the bankruptcies in Wisconsin going down.

spiderpig
Jul 26, 2011 at 3:02 p.m.
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Add Leo to the mix of people that are amazed that teachers get an education, license, interview, and continue education for something besieds the intrinsic reward of seeing a student learn. Another vote for if it's really about the kids teachers should work for $___/hr. Once we get past the evil compensation that employees and the board agreed to months before the Scooter show started, there are plenty of things that the administration could have done if it was for the kids. Let's start with the unnecessary game of musical chairs that was played. So many people in so many different positions when maybe only a few switches would have been needed. Take a look at the openings listed this summer after many of those positions were cut, only to have teachers unwilling to be recalled because greener pastures were found. In it for the kids? Sure, once the bills are paid and MY kids are taken care of.

tedmlewis
Jul 26, 2011 at 2:56 p.m.
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Janesville school taxes have declined dramatically over the past fifteen years. In 1995, Janesville residents paid a total of $33,855,932 in school taxes, at a rate of 15.16. For 2011, Janesville residents paid a total of $35,877,881 in school taxes, at a rate of 9.46. That is a fifteen year increase of under six percent. Adjusted for inflation, Janesville school taxes have declined by thirty two percent over the past fifteen years. In about half of the years, there has been an actual (not even inflation adjusted) decline in school taxes, as illustrated at the end of the above story.

soup2k10
Jul 26, 2011 at 2:42 p.m.
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Sorry about that anal not all ventures are successful & profitable. You really have to create something online & market to an audience globally. Something that brings money in from outside & is in high demand. I came here from San Diego, California & left behind a great company to help my spouse in her medical field. I'm glad I did too because she's great & gives much back to this community. My background is in technology in fact I used to work for GM here in town as a computer engineer at EDS. Many states I've lived in like California, Texas, & New York I had no trouble getting my foot in door at great companies. The Wisconsin name carries a lot of weight & University of Wisconsin speaks for itself. I know moving is hard especially when you have family and roots but sometimes its necessary. When I was in San Diego & I worked for Intuit Corporation many locals always asked me how I got my foot in the door. Its where we come from & our education and many of you teachers have far better academic education than I have. I know it seems hard & upsetting to work your tail off and not be rewarded the way you like. Each and every one of you teachers perform an excellent job and are more than worth what you receive but our Federal, State and local authorities are very strapped for cash. Yes its true they do have the power to raise taxes but this while hurt growth. I think we're faced with some decisions right now. We took an enormous pay cut to come here buts its worth it. We both have family and memories here and really enjoy Wisconsin.

leominpin
Jul 26, 2011 at 1:58 p.m.
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It is unbelievable to me that the teachers/union will not reopen the contract to aleviate this tax hike (and colleague jobs)! How utterly selfish and is proof that it has NEVER been about the kids and has ALWAYS been about their salary and benefits that are WAY over what the average taxpayer has. Seriously, how do you sleep at night?

analertcitizen
Jul 26, 2011 at 1:47 p.m.
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Wrong wrong wrong. My husband owned a very small corporation and he paid 7.9% corporate taxes every year. We were not big enough to benefit from the enormous loopholes and Walker's big business plan would have hurt us. We contributed to our state in personal income taxes too. I do not understand anyone who puts major non-paying corporations ahead of the people of this state and thinks it's okay. Mindless really.

soup2k10
Jul 26, 2011 at 1:04 p.m.
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I totally agree 916. Some focus only on negative but ignore the good. No question more good might have benefited us if some demands weren't excessive. Some of you school teachers who are unhappy with your lives, employment or benefits many other opportunities await you here and elsewhere. Instead of cannibalizing the public system I think you'll find its much easier to move on and less stressful. Yes jobs are low and more competitive but many of you have good experience & education. I think your only flaw is your attitude which can be easily be resolved with anxiety medicine. Take it from me personally I've worked for many corporations and moved many times it has its rewards rather than waiting for success to come to you.

916WI
Jul 26, 2011 at 12:48 p.m.
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So the 1,000+ of SC Johnson employees and their families that live(and spend their money) in southeastern Wisconsin shouldn't be referenced as far as adding any value to our state.........We are only allowed to focus on how the evil corporations are doing whatever they can to minimize their corporate income taxes.....correct?? You guys are too funny!!

soup2k10
Jul 26, 2011 at 12:44 p.m.
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Thank you for the data bella. Nice to have info when you see such demands being made locally while lights & other things are on on all day and night in parking lots at various schools around janesville.

fearandrhetoric4dummies
Jul 26, 2011 at 12:16 p.m.
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Not to mention that SC Johnson and other formally local companies have moved a large majority of their jobs to southeast Aisa. So not only do they recieve tax breaks, they take their jobs away and it costs them nothing!! Wkae up time partisans.

analertcitizen
Jul 26, 2011 at 11:51 a.m.
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The real point of all of this stems directly from Gov. Walker and his cronies. He cut money that was given to school districts while giving tax breaks to big companies. SC Johnson, for one, has paid no taxes for several years. We are now supporting the services that the Johnson's and their employees get as well as services that other major corporations and their employees are getting. If you want to place "blame" for all of this complete mess- put it where it belongs-not on teacher's Unions but on the Walker save money plan. How much are we really "saving" Walker advocates?

fearandrhetoric4dummies
Jul 26, 2011 at 11:17 a.m.
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Why is it that republicans now want to not honor a contract? If it was a small business, then woudl you support the breaking of a contract? doubtful.

unclesmoothie
Jul 26, 2011 at 11:07 a.m.
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facts.... Sounds like they took a page out of Governor Quinn's (D-Illinois) playbook.

bella1127
Jul 26, 2011 at 11:06 a.m.
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State whose residents Pay the most taxes
4. Wisconsin
> Taxes paid by residents as pct. of income: 11%
> Total state and local taxes collected: $41.7 billion
> Pct. of total taxes paid by residents: 77.9%
> Pct. of total taxes paid by non-residents: 22.1%

According to the Milwaukee Journal Sentinel, Wisconsin relies more on income and property taxes for its revenue than most states. In fact, both are approximately 25% higher than the national averages. The state receives a smaller portion of federal money than most others, leaving little room for this money to offset state spending. Worst still, taxes on industrial property owners rank among the bottom half, and often the bottom third, of the country, while residential taxes are among the greatest. According to a study by the Institute on Taxation and Economic Policy, Wisconsin’s middle class pays a bigger share of government spending than any other state, except for New York.

Read more: States Where People Pay The Most (And Least) In Taxes - 24/7 Wall St. http://247wallst.com/2011/07/21/108558/#...

fearandrhetoric4dummies
Jul 26, 2011 at 11:03 a.m.
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Mr Knilans is absolutely "entitled" to his opinion. I just think he should have run for office where he actually lives, not in the community that he "rents" out his brothers basement in. I mean honestly a Panda bear could have knocked out Sheridan.

Rekawl
Jul 26, 2011 at 10:39 a.m.
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"Neither did the taxpayers".

So why is it acceptable for the teachers to be the only ones giving? You as a taxpayer do not want to be the only one to shoulder the burden by having your taxes raised, yet you feel it's ok to make someone else pay? I guess that logic works so long as you are not the one paying.

Unfortunately, we all are "haves" and "have nots" at some point in our lives, relative to whom you are comparing. Right now the pendulum being swung by Scott Walker is creating more "have nots" out of the people that used to "have".

flyboyatjvl
Jul 26, 2011 at 9:49 a.m.
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Here's a novice idea: Quit spending so much!

All society knows these days is tax and spend.

Oh yeah, I am SOOOOO happy that we spent millions on the new gym/cafeteria at Craig. The one or two kids that use the weight room appreciate it!

factsplease
Jul 26, 2011 at 9:48 a.m.
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They do not want an "open faucet of money"! All they want is for their CONTRACT, which was negotiated in good faith, and approved by the elected school board, to be honored! How is that greedy or an "open faucet of money"? Quit vilifying the teachers, they aren't asking for anything out of the ordinary.

vatoloco
Jul 26, 2011 at 9:40 a.m.
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"The teachers did not create this problem but are asked to shoulder all the financial solutions."

Neither did the taxpayers yet the teachers want an open faucet of money to pay for their benefits.

In an age where many have no jobs, their actions are selfish.

luvujvl
Jul 26, 2011 at 9:27 a.m.
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So, Joe Knilans is not allowed to have an opinion? There are two sides (actually more like twelve) to this issue - right or wrong, it will be up to the teachers to decide, and the rest of us will have no say in the matter.

tikiman1
Jul 26, 2011 at 6:52 a.m.
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Cut the sports programs.

Rocky
Jul 26, 2011 at 6:17 a.m.
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eh- good point, Doc!

fearandrhetoric4dummies
Jul 26, 2011 at 2:25 a.m.
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here comes the board and soon schulte begiing for something that isnt going to happen. The teachers are not opening their deal, nor should they. The new board member Feldt should just keep his mouth shut. What is he Bill Sodapops understudy? Just cut it out, do your jobs and balance the budget. Stop whining for things that will not happen. No matter how many times you get in front of a TV camera. Raise my taxes if necessary. I have given to Save Janesville Schools and I will happily make a modest contribution to my community. (Scott Walker rhetoric) The next time I hear one of these idiots use the walkerism TOOLS when it comes to schools I think I am going to PUKE!!
Hey Joe you find an apartment in town yet? Or you still living in your brothers basement? Why has there been no investigation into this guys corruption to get elected. He needs to be recalled as soon as possible.
RECALL THEM ALL!!

Rekawl
Jul 25, 2011 at 11:10 p.m.
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Well this explains the "thump-thump" sound I heard today...it was Rep. Knilans throwing Janesville teachers under the bus. It's very sad that Rep. Knilans and even some of our school board members continue to vilify teachers in this community. The teachers did not create this problem but are asked to shoulder all the financial solutions.

doc0430
Jul 25, 2011 at 10:50 p.m.
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Rocky, Sorry but we can't give you any of the road money, Doyle stole it all out of that fund while he was raiding any funds he could get his hands on, legally or not......

Rocky
Jul 25, 2011 at 9:45 p.m.
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@Crunch-Munch. Think nothing of it. I just love the $6000 my family has paid this year to fund other people's social security & medicare benefits. I'll pay for my own kids - you pay for your own retirement and health care. Deal? Oh- I'm also sick of paying for roads I don't ever use. Can I get a rebate on those as well? [/sarcasm]

germancaveguy
Jul 25, 2011 at 9:18 p.m.
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How can Knilans be so blind to his own parties hypocrisy. It is either that, or like his brethren, he cares not what happens to the average person. Which ever way you look at it, everyone but the highest of tax payers must sacrifice to save our country.

We have a situation where we are either looking at a property tax increase or a decrease in teachers salaries. Both solutions result in the same overall impact; less disposable income to be spent. Why can't people see that this is the ultimate trend that these race to the bottom policies lead too.

One of the biggest problems we have right now is not our tax rates, but our incomes. I applaud the teachers in Janesville for fighting to keep their pay intact.

More of the people here should be doing the same. Instead, many people have just jumped on the bandwagon of make less and spend less. While frugality is a good skill to have, being cheap is never held in high regard.

I wonder what the ultimate goal here is. Are we all to be expected to work harder for less. Maybe then we will be attractive in the global economy. Maybe then the jobs will come back and the employers will start hiring again. Maybe then we'll all make comparatively the same wages and pay the same taxes. Nothing!

Maybe, maybe, maybe...

spiderpig
Jul 25, 2011 at 8:52 p.m.
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"Knilans pointed to a statement by the state teachers union last winter that teachers would agree to start paying for pensions if collective bargaining rights were preserved." Didn't think that one through all the way Joe, did you? At least Frank did some in debth reporting and pressed you on the second half of that sentence a few paragraphs later. Here's some advice, just repeat what Scooter tells you to say. It will be bland but at least you won't open the door for me to walk through. Text him now... Maybe he will give you some lines to throw out there. I see you used some of them "teachers tying up people's lives" and all that. But, but Scooter, we made this law to take away their union rights, why do they not want to play ball with us? We've made it easier to screw them in two years, why don't they want a preview of what's to come? They said they'd pay, if we didn't screw them. Now we screwed them and they won't pay. What's that about? Thanks for being my representative, Joe. You're always good for a laugh.

realist
Jul 25, 2011 at 6:50 p.m.
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"They’re putting the school district and everybody else’s livelihoods on the line because of a waiting game on their part. I think that’s terrible. I think that’s something they shouldn’t be doing,” Knilans said.

What happen to share the pain Knilans? Teachers are paying taxes as well. So now you want them to take a double hit? I think if taxes are raised to cover the deficit, sounds to me like everyone is paying the same share. Instead you want the teachers to pay thousands out of thier pocket to balance the budget. You are off your rocker. Keep bringing up the B.S. that the teachers said they would open thier contracts to pay more money. They did if they could keep thier collective bargaining. Your days are numbered.

mrsdamracefan
Jul 25, 2011 at 5:59 p.m.
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Fire everybody starting at the Top of the Totem Pole and start over. To Many assistants and Bosses in this district anyways. Make them reapply just like some other companies have done then lets see where we can save some money..... First my appraisal now my TAXES can't squeeze to much tighter Welfare won't help me I have an asset it's called my home can't sell it house market is dooms day!!!! What can we do.... nothing but bend over and take it

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