If the state goes into shutdown mode, does this also mean that the school districts don't get their state funding? If they don't, then there are going to be school districts looking at layoffs as well.
I don’t think the state goes into shutdown. The issue that Scott Walker is facing with Wisconsin is that there is a law requiring a balanced budget. The current fiscal year ends June 30, 2011. Walker has to erase any deficit for this fiscal year by that date . . . hence the layoffs. He had several other things in the budget repair bill to clear up the projected deficit for this year, one of which was restructuring the debt, i.e. refinancing a loan that falls due in this time frame, at a reduced rate of interest.
Any state revenue sharing for local school districts on the chopping block would be in the next two-year budget (7/1/2011 thru 6/30/13). This is why the potential layoff notices were sent out - to meet a requirement that the teachers be notified by a certain date.