Civitas Forum: How We Pay For Schools: The State's Role

Wisconsin State Journal
11/24/2007

Since 1949, state policy in Wisconsin has explicitly attempted to increase the equity of per pupil spending among state school districts through formulas that direct more state aid to districts with lower per pupil property values.

In addition to seeking "fiscal neutrality" by compensating for differences in the tax base among individual districts, the Legislature's school financing policies also have attempted to provide Wisconsin taxpayers with school property tax relief, help school districts meet the extra costs of educating "at risk" students and those with disabilities and equalize per pupil spending by discouraging spending in high-spending districts.

The state seeks to achieve these goals through tools including equalization aid, a "two-thirds" commitment of financing K-12 schools, a school levy credit, revenue limits, the "qualified economic offer" and state categorical aid. As a result of these policies, between the 1992-93 and 2006-07 academic years, the average school tax rate declined from $17.14 to $8.31, according to data compiled by Wisconsin Taxpayers Alliance.

How we fare: Andrew Reschovsky, a professor of public affairs and applied economics with UW-Madison's Robert M. La Follette School of Public Affairs, says Wisconsin's aid formulas do a relatively good job of evening out per pupil spending across districts with high and low property values. However, Reschovsky's research indicates the state formulas have proven less successful in providing the resources necessary to What you think: In a March 2006 Wood Communications Group survey of 600 Dane County residents, respondents gave high marks to the quality of teaching that occurs in most public schools. Seventy-three percent rated the quality of teaching as "excellent" or "good" while 15 percent rated it as "fair" or "poor." About 12 percent were undecided.Since 1949, state policy in Wisconsin has explicitly attempted to increase the equity of per pupil spending among state school districts through formulas that direct more state aid to districts with lower per pupil property values.

In addition to seeking "fiscal neutrality" by compensating for differences in the tax base among individual districts, the Legislature's school financing policies also have attempted to provide Wisconsin taxpayers with school property tax relief, help school districts meet the extra costs of educating "at risk" students and those with disabilities and equalize per pupil spending by discouraging spending in high-spending districts.

The state seeks to achieve these goals through tools including equalization aid, a "two-thirds" commitment of financing K-12 schools, a school levy credit, revenue limits, the "qualified economic offer" and state categorical aid. As a result of these policies, between the 1992-93 and 2006-07 academic years, the average school tax rate declined from $17.14 to $8.31, according to data compiled by Wisconsin Taxpayers Alliance.

How we fare: Andrew Reschovsky, a professor of public affairs and applied economics with UW-Madison's Robert M. La Follette School of Public Affairs, says Wisconsin's aid formulas do a relatively good job of evening out per pupil spending across districts with high and low property values. However, Reschovsky's research indicates the state formulas have proven less successful in providing the resources necessary to What you think: In a March 2006 Wood Communications Group survey of 600 Dane County residents, respondents gave high marks to the quality of teaching that occurs in most public schools. Seventy-three percent rated the quality of teaching as "excellent" or "good" while 15 percent rated it as "fair" or "poor." About 12 percent were undecided.

Test your knowledge: According to the Wisconsin Taxpayers Alliance, what was the average percent change for both the tax levy and the tax rate for academic years 2005-06 to 2006-07? (a) -2.3 percent tax levy, +1.4 percent tax rate (b) +5.4 percent tax levy, -3.6 percent tax rate © +6.1 percent tax levy, -4.7 percent tax rate (d) +10.1 percent tax levy, +1.6 percent tax rate Last column's quiz answer: The National Center for Education Statistics reports that states are the largest single source of public school funding. According to data from 2005 for Wisconsin and the United States, Wisconsin's contribution to public school funding is 7.4 percent higher than the national average.

Got a question? Civitas experts can answer your public policy question. E-mail national@madison.com. What is Civitas? These monthly seminars inform citizens about local government issues and civic responsibility. They are organized by Wood Communications Group and financially supported by several Madison area companies. For more information, visit www.civitaswi.org.