AEF is a group of Wisconsin school districts seeking financial equity in the state school finance system. Members

include urban districts such as Green Bay and Beloit, and small, rural districts like Algoma, Cornell, Seneca, and Tigerton.

The two issues that brought this group together and have kept it together for over 15 years have been the wide differences in the amount school districts have been able to invest in the education of their children and the even wider differences in the property

tax burden to pay for that investment.

www.waef.net

AEF Activities• Advocating - Meetings (DPI, Legislators, Governor) - Letters – Governor - Resolution Campaign – Levy Credits• Newsletters• Website: www.waef.net

Updated Legislative Proposal

• Problem - Inequities• Proposed Solutions

School District Comparisons 

School DistrictLocal

Property Value/Pupil (2010 Aid Data)

2009-10 Comparable

Cost per Pupil

2010-11 Equal Aid/ Pupil

2009-10 Tax Rate

2009-10 Levy

Credit/ Pupil

BeloitPoorest K-12

$210,254 $12,365 $7,977 $8.24 $340

GibraltarWealthiest/Lowest Taxing

$6,272,303 $17,897 $18* $2.71 $2,701

ElmwoodHighest Taxing

$427,734 $15,388 $7,269 $15.35 $915

Phelps highest spending

$3,042,358 $24,465 $110* $7.06 $3,895

Wauwatosa $878,380 $10,781 $2,883 $7.92 $1,153Green Lake $3,503,363 $20,375 $112* $4.85 $2,938Berlin $378,256 $11,862 $6,889 $9.57 $588Three Lakes $2,830,586 $15,636 $173* $4.99 $2,579Wausau $464,433 $12,814 $6,167 $10.41 $776Elmbrook $1,183,819 $13,329 $380 $10.04 $2,096State Average (K-12) $560,976 $12,366 $5,180 $9.18 $847

Sources: WTA SchoolFacts10 and October 15, 2010 State Aid Run - DPI

Comparisons between 1992-93 and 2009-10 

School District1992 Local Property

Value/Pupil

92-93 Per Pupil

Spending(CASC)

92-93 Tax Rate

GibraltarWealthiest K-12/Lowest tax rate

$1,217,237 $8,444 $6.09

MellenPoorest K-12 /Highest tax rate

$66,998 $7,424 $31.56

State Average (K-12) $190,590 $6,514 $20.16

Sources: Basic Facts

 School District

2009 Local Property

Value/Pupil

09-10 Per Pupil

Spending(Comparative Cost)

09-10 Tax Rate

GibraltarWealthiest K-12 /Lowest tax rate

$6,272,302 $17,897 $2.71

BeloitPoorest K-12

$210,254 $12,365 $8.24

ElmwoodHighest tax rate

$427,734 $15,388 $15.35

State Average (K-12) $560,976 $12,366 $9.18

1996New $ for

2/3rds=

Tax Relief

Property Tax Credits

Property Tax Relief

State Support for K-12 =

Direct

Aid to

Scho

ols

Direct Aid v. Levy CreditsDirect Aid v. Levy Credits Impact on TaxesImpact on Taxes

State Categorical & Equalization Aids affect State Categorical & Equalization Aids affect Gross Tax LevyGross Tax Levy

Certified Tax Levy affectsCertified Tax Levy affects

Levy Credits affectsLevy Credits affects

Net Property TaxesNet Property Taxes

Net Property Tax Levy Impact on Pulaski Taxpayers

Gross to Net Tax Levy Impact of Current Law with School Levy Tax Credits

 2009-10 Certified School Levy Net Levy

Gross Levy

Net Levy  

Levy Tax Credit* (-) Credits Rate Rate Diff 13,635,695 2,436,172

11,199,523

8.90

7.31

1.59

LFB 2/2/10 ANALYSIS of School Levy Tax Credits Transferred to Direct Aids

 2009-10 Certified

Adj School Aids Net Levy Levy

Adj Levy  

LevyReallocated

credit $* (-) Add’l Aids Rate Rate Diff 13,635,695 2,755,250

10,880,445

8.90

7.10

1.80

Net impact on taxpayers of Direct Aid vs. School Levy Credit distribution

0.21

*Based on LFB 2/2/10 analysis that used 08-09 actual school levy credit amount

SCHOOL LEVY & 1SCHOOL LEVY & 1stst Dollar TAX CREDITS Dollar TAX CREDITS

1995-961995-96 $ 319m$ 319m1996-971996-97 + 150m+ 150m Nearly a Decade = Nearly a Decade = $ 469m$ 469m 2005-06 2005-06 + 124m+ 124m

$ 593m$ 593m 2007-08 2007-08 + 79.4m+ 79.4m

$ 672.4m$ 672.4m 2008-09 2008-09 + 150m+ 150m

$ 822.4m$ 822.4m 2009-10 2009-10 + 70m+ 70m

$ 892.4m$ 892.4m 2010-11 2010-11 + 4.6m+ 4.6m

$ 897.0m$ 897.0m

State Funding for K-12 Education2005-06 to 2010-11

($ in Millions) 

Sources: 2009 WISCONSIN Act 28 as vetoed and AEF fall 2009 newsletter

State Budget Act 28Change from

05-06 to 10-112005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 $ Incr % Incr

General School Aids $4,613.90 $4,722.70 $4,731.70 $4,811.50 $4,671.20 $4,671.20 $57.30 1.20%

School Levy & First Dollar Credits $469.30 $593.10 $672.40 $822.40* $892.40* $897.40 $428.10 91.10%

Categorical Aids $545.20 $571.10 $608.50 $650.90 $644.20 $653.80 $108.60 19.90%

State Resident Schools $10.40 $10.40 $11.50 $11.50 $11.80 $11.80 $1.40 13.40%

Total State Funding $5,638.80 $5,897.90 $6,024.10 $6,296.30 $6,219.50 $6,234.20 $595.40 10.60%

*This includes First dollar credits that were added in 2008-09 for $75M with another $70M added in 09-10 and $5M in 10-11

School Levy CreditsSchool Levy Credits

Municipality’s 3-YearAverage School Levies

Statewide 3-YearAverage School Levies

(Includes school levy credits, first dollar credit, and the lottery and gaming credits)

DISTRIBUTIONDistributed based on each municipality’s share

of statewide levies for school purposes during the preceding three years.

Source: LFB Papers #21 & #27, January 2009

Local Factors:•Local Spending (Higher spending means more credit)•Local Levy (Higher taxes means more credit)•Direct State Aid (Lower state aid means higher local levy, means more credit)

Differing Effects of the 2 Largest Forms of State Support Differing Effects of the 2 Largest Forms of State Support (Aids v. Credits) on Local Taxes(Aids v. Credits) on Local Taxes

● Property poor/low spending districts will receive more state support when funds are channeled as Equalization Aid

● Property wealthy/high spending districts will receive more state support when funds are channeled as School Levy Tax Credit

● Taxpayers in every district gain from First Dollar Credits (Disequalizing)

Why is this important?There has been a shift from Equalization Aids to Levy Credits – Disadvantages 70% of WI SDs

Source: LFB Analysis February 2, 2010 Memorandum on school aids and school levy tax credits

 School District Loss  School District GainAppleton +.35 -$2,460,110 Crivitz (1.34) $1,199,074Baraboo +.50 -$812,613 Drummond (.76) $1,020,634Waunakee +.17

-$352,788 Elcho (.99) $806,260

Delavan-Darien +.47

-$919,700 Elmbrook (1.56)

$12,132,922

East Troy +.46

-$698,069 Gibraltar (.44) $1,605,973

Fond du Lac +.37 -$1,313,439 Green Lake (.98) $1,034,812Hudson +.51 -$1,823,001 Hayward (1.02) $3,194,244Kenosha +.30

-$2,842,143 Mequon-Thiensvl (1.62) $7,487,810

Marshfield +.54 -$1,053,006 Northland Pines (1.01) $3,657,577Mosinee +.41 -$418,468 Phelps

(1.30)$550,762

Mukwonago +.41 -$1,355,671 Sevastopol (.90) $1,291,729Oak Crk-Frank +.46 -$1,711,559 Spooner (1.21) $2,117,850Owen-Withee +.44 -$89,065 Three Lakes

(.96)$1,495,773

Racine +.65 -$6,299,947 Webster (.97)

$1,432,684

Waukesha +.31

-$3,031,465 Weyerhaeuser (1.50)

$296,963

Wauwatosa +.46

-$2,475,613 Williams Bay (1.23) $1,429,572

West Bend +.59 -$2,784,119 Wisconsin Dells (.89) $2,070,942Total No. of SDs 295 = 70% Total No. of SDs 130 = 30%

LFB Analysis: Shift of $747.4M School Levy Credits vs. Equalization Aid to in 2009-10 

Source: LFB Paper dated February 2, 2010

CESA Comparisons 

Source: School Facts ‘10 by WTA

CESA No. of School

Districts

09-10 State Equal Val per

Pupil

09-10 Tax Rate

09-10 State Equal Aid per

Pupil

09-10 Levy Credit per

Pupil

09-10 Tot Exp per

Pupil

CESA #3 31 $427,989 $10.34 $6,613 $704 $13,003 CESA #4 26 $434,902 $9.66 $6,624 $682 $12,571 CESA #5 35 $592,752 $8.97 $5,066 $831 $12,025 CESA #6 42 $544,661 $8.16 $5,727 $723 $11,547 CESA #7 37 $519,411 $8.40 $5,962 $719 $11,941 CESA #8 27 $572,480 $8.69 $5,616 $832 $12,918 CESA #10 30 $441,794 $9.19 $6,236 $672 $11,738 CESA #11 39 $587,520 $9.17 $5,097 $894 $12,000 CESA #1 43 $761,529 $8.71 $4,121 $1,110 $11,992 CESA #2 74 $739,529 $8.45 $4,631 $1,036 $12,403 CESA #9 22 $1,003,934 $6.02 $5,070 $1,006 $12,923 CESA #12 17 $854,675 $7.17 $4,518 $1,012 $13,208 State Ave (K-12)   $560,976 $9.18 $5,373 $847 $12,366

Below Average Levy Credit = 277 SDs Above Average Levy Credit = 156 SDswith lots of out-of-state property owners

15

Who Pays & Who Benefits from Levy Credits?Who Pays & Who Benefits from Levy Credits?• Only 51% of the total school levy credit reduces property taxes of WI homeowners

on their primary residences.• 9% of the levy credits go to WI 2nd homeowners • 26% go to non-WI 2nd • "Property owners in the poorest school districts (in terms of property wealth)

received an average credit equal to $375 per student. The size of the average credit going to taxpayers in school districts with higher levels of property wealth per student increases with district wealth. Property owners in the state’s 21 property-richest districts received average per student credits of $2,596, nearly seven times the average credit going to taxpayers in the poorest school districts."   

Source: Andrew Reschovsky's study of the levy credit: http://www.lafollette.wisc.edu/publications/workingpapers/#2010-003

 School District

09-10 Tax Rate

09-10 Total Exps per

Pupil

09-10 Levy Credit per

Pupil

09-10 Equal Aid per Pupil

Abbotsford $8.78 $11,096 $371 $7,503DC Everest $9.52 $11,508 $597 $6,872Racine $6.69 $12,024 $560 $6,156Sparta $9.37 $12,472 $566 $7,383Elmbrook $10.04 $13,329 $2,096 $899Green Lake $4.85 $20,375 $2,938 $131Mequon-Thiensville $8.73 $12,614 $2,038 $597Three Lakes $4.99 $15,636 $2,579 $202State Average (K-12) $8.45 $12,366 $758 $5,222

District Comparisons 

Sources: School Facts ‘10 by WTA

Below Average Credit Above Average Credit