How We Pay For Schools: Local Funds And The Property Tax

Wisconsin State Journal
12/1/2007

Nearly all the revenue (91 percent) raised by local school districts comes from the property tax, although in recent years, the activity fees and charges for food and special services have increased.

In Wisconsin, the value of property per student is distributed unevenly across communities, although in general, suburban communities and areas with a strong business or commercial base have higher property values than other areas. State efforts to help equalize revenue among school districts target communities with lower property values for increased aid. Despite these efforts, property taxes remain a political issue because an individual's property tax bill may still be high relative to current income.

The good news is that, over the past 11 years, Wisconsin's total property tax levy has actually decreased after adjusting for inflation. Between 1993-94 and 2006-07, the levy fell by 4.5 percent after factoring in inflation, according to data compiled by Wisconsin Taxpayers Alliance.

How we compare Wisconsin is often perceived as a state with relatively high property taxes, but when it comes to public schools, local school districts here cover about the same proportion of costs as in other states. According to the National Center for Education Statistics, local school districts in Wisconsin fund about 43.5 percent of public K-12 costs compared with about 43.9 percent nationally.

What you think In a March 2006 Wood Communications Group survey of 600 Dane County residents, respondents said they were pleased with the physical condition of public schools in their communities. Sixty percent rated the physical condition of their local schools as "excellent" or "good" and 23 percent expressed concern that conditions were "fair" or "poor." About 12 percent were unsure.

Test your knowledge According to Wisconsin Taxpayers Alliance, the average expenditure per pupil in 2005-2006 was $10,642. What school district had the lowest per pupil expenditure? (a) Milwaukee (b) Mount Horeb © North Cape (d) Mazomanie.

Last column's quiz answer The average percent change for both the tax rate and the mill rate for academic years 2005-06 to 2006-07 was (b) +5.4 percent tax rate, -3.6 percent mill rate.