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Sunday

May 2013

19

82-cent hike in Kettle Moraine School District tax bill

Big drop in state aid raises district tax rate

Dealt one of the largest reductions in state aid of almost any district in the state, while facing declining enrollment, lower property values and a reduced revenue limit, Kettle Moraine School District residents will see an increase in the tax rate of 82 cents per $1,000 of assessed value for the 2012-13 school year.

State aid is the lowest the district has seen since 1995-96, according to Chief Business Officer Susan Graham.

The district approved general fund expenditures of $45 million for 2012-13, up about 3.4 percent over the 2011-12 budget of $43.5 million. The increase in spending, coupled with a 15-percent decline in state aid shifted more of the burden onto taxpayers. The tax levy for 2012-13 is $33.6 million, up about 4.5 percent over the 2011-12 levy of $32.1 million.

Additionally, a nearly 4-percent reduction in property values coupled with the increase in the tax levy, leaves taxpayers with a tax rate 82 cents higher per $1,000 of assessed value than last year. The 2012-13 tax rate is $10.22 per $1,000, which is 8.7 percent higher than the 2011-12 tax rate of $9.40 per $1,000.

"Operationally, the budget has remained unchanged for the past six years," Graham said. "We're constantly trying to outperform our budget."

The budget was balanced through realigning resources to support the district vision of learning without boundaries, changes to insurance plan designs and bidding out health, dental, life and disability insurance. The final levy figures were only about $3,000 more than what was presented at the annual meeting, Graham added.

According to Graham, the impact on property taxes will depend on the assessed values placed on homes. If the value remains unchanged, a home valued at $350,000 will receive a potential tax increase of $357, while if the same home's value drops by nearly 4-percent the potential tax increase would be $220 per $1,000 of value.

"One would assume that since the equalized value came in reduced, so would some of the property values, but not necessarily at the same rate," Graham explained.

  1. Is this the same lady who is a member of the Delafield Chamber of Commerce and
    who was the KMSD representative on the county TIF Review Board? Is it possible
    her approval was biased toward a residential TIF? More customers for the chamber
    more students for the school district? Too bad any tax relief on 8.5 million dollars
    worth of property would have provided for district tax payers is now delayed for the
    life of the TIF. Count the years my friends.
  2. "The increase in spending, coupled with a 15-percent decline in state aid shifted more of the burden onto taxpayers."

    So let me get this straight: State aid does not come from taxpayers?

    How about reporting the basic fact that the School District is spending more local taxpayer money and less State taxpayer money. It seems fair that if my local school board spends more that someone in Rhinelander should not have to pay for it and vice versa.

    The real question is why does lower enrollment result in higher costs? Fewer students don't demand more classrooms, teachers, books, computers, buses...
  3. Mucho - lower enrollment doesn't result in higher costs. The total budget is less this year than it was last year.
  4. Well, Sawzall that may be. That would be an interesting point the reporter left out to make room for a confused attempt at explaining Assessed vs. equalized value impact relative to a school district's spending increase.

    Either way - keep school spending as local as possible. The less the state has to redistribute the better.
  5. As a taxpayer in the state of WI what difference does it make if you take it out of my
    left pocket or my right pocket? The "spending" would always be "local". The question
    is why would you block or delay any relief? Do you think KSMD is spending it's own
    money?
  6. As a taxpayer in the state of WI what difference does it make if you take it out of my
    left pocket or my right pocket? The "spending" would always be "local". The question
    is why would you block or delay any relief? Do you think KSMD is spending it's own
    money?
  7. Opinionator - Pretty simple difference. If the State takes $100 from you and because of means testing spends $22 on KMSD and $78 on MPS - You're good with that?
    Remember - KMSD already spent the $100. Do you want that $100 to cost you $178 or $100?
  8. Are you saying if KMSD charges me $100 the state won't? I figure I pick up the
    check for both no matter how they divide it or spend it. Back to my original point.
    The state does not vote for TIFS that delay or block immediate relief of the check
    total- KMSD did.
  9. I thought taxes were going down?? That's what Scott Walker said when he said we
    needed to cut the pension and medical plans of the teachers. Were we sold a bill of
    goods? Boy, I sure hope Romney keeps his word. I need my taxes to go down so I
    can save to pay for my medicare charges above my voucher limit in 12 years. Oh,
    I'm sure taxes will go down, Romney wouldn't change his mind.
  10. "Are you saying if KMSD charges me $100 the state won't?" -

    Eureka! You get it.
  11. Nice one Geogrduyba:

    Read up on Evers' budget request and how he proposed "Fair Funding" via redistribution and get back to the class with your report. Local accountability is key to cutting waste.

    http://dpi.wi.gov/fairfunding/
  12. Goegrbudy- You once again resort to name calling due to lack of fact or basic research skills.

    I approximated but came really close. Milwaukee County gets 2X the per pupil State and Federal Aid than Wauk County at 65% of its per pupil costs are from our income tax dollars vs. property tax dollars. 78% is likely dead on for a direct comparison of MPS vs. KMSD after you take out the non-MPS MKE county schools and the non-KMSD Wauk county schools.

    Why localize school funding? MPS gave their teachers a compensation raise from $101,000 per year to $106,000 per year average this year while KMSD teachers complied with Act 10 and accepted a decrease. MPS has over $370,000,000 in long term debt that KMSD residents are helping to foot the bill for. MPS students have a 45% truancy rate while KMSD has 0.5% truancy rate.

    For every dollar that Waukesha County residents get taxed on their income, they get back 34 cents and MPS gets 66 cents (not all for education but a lot for raises for 6 figure salaried techers and payments toward the interest on $370mm in debt).

    You can validate the sources for yourself. These facts don't come from today's Leftie "talking points" or angry white guy "hate radio" but from a broke middle class taxpayer that pays for an MPS school system that not only my kids don't attend but the MPS kids don't either (45% truancy rate):

    http://www.publicpolicyforum.org/pdfs/2011SchoolingReport.pdf
    http://www.jsonline.com/news/education/mps-perpupil-spending-4th-highest-in-us-1u5rurq-159889555.html
    http://www.jsonline.com/news/education/mps-perpupil-spending-4th-highest-in-us-1u5rurq-159889555.html
  13. I was mistaken when I said this year's total budget is less than last year's. The
    total budget is, indeed, higher. What made it higher is the increased payments
    for retirement (I'm assuming this is because of the payout given when the KMSD
    local retirement benefits were eliminated). With those benefits gone, things will
    get cheaper in that area from now on.

    Either way, you were asking how less students could cost more, and this does
    happen. The reason is because fixed costs don't depend on the number of
    students, and in most cases the cost of everything is going up. No matter how
    many students are in a building, you still have to heat it, plow snow, keep lights
    on, etc., until the number of students in the building is zero. When enrollment
    declines by 30 students you can't just elimate a classroom and a teacher because
    those 30 students are usually spread out across 13 grades. Same goes for bus
    routes. Those 30 students are spread across numerous bus routes, if they even
    rode a bus at all. Unfortunately, things are never as simple as people would like
    to believe them to be.
  14. Cut the teacher's salaries. Why is this sacrosanct? Salaries make up 75% of the budget. $126,000 a year for the principal at Magee are you kidding me.
  15. $126,000 salary for the Magee principal? Where did you get that number? Maybe if you are also including the cost of benefits.
  16. All very interesting numbers, but my question is, by state law, the per student revenue limit increase currently is $200 (Wisconsin Taxpayers' Alliance). The purpose of this limit is to limit school property tax increases for any reason. While school districts are allowed to pass through state aid reductions, the revenue limit still applies. The KMSD levy increase is $1.5 million. KMSD has 4260 students (2012). $200 x 4260 is $852,000. By my probably simplistic figuring, KMSD is raising the property tax levy by $648,000 more than state law allows. How do they do that?
  17. Aneuhauser - The state aid reduction was more than the $648,000 difference. In addition, the math for the number of students is significantly more complicated than just using the number of students from the prior year. First, it is based on "membership" which is really a formula to come up with a number of full time students. Second, the membership number for the revenue limit is a rolling average of 3 years. So that rolling average pulls the membership number up a little since enrollment was higher in the past.

    The DPI website has spreadsheets for each district showing how revenue limit and state aid is calculated for each district. Check them out. You will be shocked at how complicated it is. It doesn't look like the new ones are out yet, but you can see the past 19 years all the way back to when revenue limits were created in 1993.
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