Download - AEF Activities
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