When Property Tax Bills Arrive: Understanding the Full Picture
As property tax bills arrive across Wisconsin, many residents have questions about why taxes have increased and what role local school districts play. This page is intended to provide clear, factual information about how school funding works and the factors that influence local property taxes.
How School Funding Works in Wisconsin
Under Wisconsin law, school district spending authority is governed by state-imposed revenue limits. Local school boards do not have unlimited authority to increase spending or property taxes. Any spending above those limits requires voter approval through an operating referendum.
In the 2025–27 state budget, the Legislature authorized a per-pupil increase in revenue limits. However:
- The increase was below the rate of inflation, and
- The increase was not accompanied by an increase in general state school aid
Historically, when revenue limits increased, the state typically provided additional aid to reduce the impact on local property taxpayers. The most recent budget did not follow that approach. As a result, a larger share of school funding shifted to local property taxes, even though local spending authority remained constrained.
Special Education Funding
Special education services are required by law and must be provided by school districts. State reimbursement for these services is funded through a fixed (“sum certain”) appropriation.
When statewide special education costs increase, reimbursement rates decline. This results in districts using more general operating funds to cover required services, which can place additional pressure on local budgets.
Community Impact
Together, these factors can contribute to:
- Increased reliance on property taxes
- Reduced flexibility in local school budgets
- Greater use of operating referenda to maintain educational services
These conditions are being experienced by districts across Wisconsin and are not unique to any single community.
Common Questions: Myth vs. Fact
Myth: School districts raised property taxes because they chose to increase spending beyond inflation.
Fact: School districts can only increase spending within state-set revenue limits. The authorized increase did not keep pace with inflation and was not supported with additional state aid, shifting more responsibility to local property taxes.
Myth: Schools received “record funding.”
Fact: While funding levels increased in some areas, those increases did not keep pace with inflation, rising fixed costs, or mandated expenses such as special education.
Myth: Operating referenda indicate poor financial management.
Fact: Referenda are often the only mechanism available to districts when state funding does not align with required costs and authorized spending levels.
Myth: Property tax increases would have occurred regardless of state action.
Fact: In prior budgets, state aid increases helped offset revenue limit changes and reduced pressure on property taxes. The most recent budget did not include corresponding increases in general aid.
Myth: This is a local issue.
Fact: This is a statewide funding structure that affects school districts across Wisconsin, regardless of size or location.
District Commitment
The district remains committed to transparency and providing accurate information to the community. Property taxes affect all residents, and understanding how school funding decisions are made can help clarify why tax bills may change from year to year.
If you have questions or would like additional information, please contact the district office.
