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School districts are facing serious financial problems after seven years of spending limits imposed by the state, according to a report released Sunday.

Gov. Tommy Thompson’s administration won legislative approval and implemented spending caps for public school districts starting with the 1993-95 state budget to hold down property taxes. But annual revenue increases have been insufficient to cover rising costs for staff salaries, textbooks, technology and utilities, the report said.

For some school districts, a cold winter and high heating fuel prices are pinching tight budgets, according to the report from the Institute for Wisconsin’s Future, a policy research center in Milwaukee.

The report was based on testimony from 260 teachers, administrators, parents and students at six hearings last fall. The group will present it this week to the Senate Education Committee in hopes of winning support for raising revenue caps.