You must be new to the discussion. 
Walker campaigned on the promise to cut government spending by 16%, but this was before he reneged on the promise in order to get elected.
Statewide, there has been a year over year 3.7 decline in student enrollment. The Anchorage School District, recently reported a decline in enrollment of over 600 students; it should be noted that enrollment in the district is down almost 1k over a three year period. In fact, enrollment in the district has been in steady decline for over ten years. Yet, the district can’t get its financial house in order.
Instead of a corresponding decline in education spending, the district continues to hand out generous bonuses to teachers, and is increasing hiring of non-essential personnel. In fact, a member of the school board is now advocating for taking funding away from rural districts and giving it to Anchorage schools. 
Sen. Kelly is correct-that we have a spending problem.