This month, many homeowners in Wisconsin are feeling the crunch when they open their property tax bills. Brad Cortright in Wauwatosa saw a dramatic increase of $2,400. He explained that while it’s not quite a 50% hike, it’s significant. “It seems we didn’t go up as much in the last cycle, and now it caught up with us,” he remarked.
According to a recent report from the Wisconsin Policy Forum, K-12 school property taxes have shot up an average of 7.8%—the largest jump in 30 years. Local referenda and changes to revenue limits in the past two years contributed to this spike. Meanwhile, county property taxes are set to rise by 3.1%, which is more typical.
The report pinpoints three main drivers for the school tax rises: flat state support, higher per-pupil funding limits, and increased voter approval of school referenda. School funding mainly comes from a mix of taxpayer dollars, state aid, and federal support. The report highlights a troubling trend: “The burden of financing local government services, especially schools, is falling more on property taxpayers this year.”
This situation is complex. The Wisconsin Legislature, led by Republicans and Governor Tony Evers, kept the annual increase for per pupil revenue at $325, a limit set in the recent budget. This decision has likely pushed K-12 property tax levies higher. Additionally, freezing state general school aid exacerbated the problem, leading most school districts to levy taxes close to the maximum allowed.
Factors like rising teacher salaries, inflation, and declining student enrollment add pressure on budgets. Many districts no longer have the federal pandemic relief funds that once aided them, further straining finances.
In Beloit, Wayne Boardman bought his home last September with hopes of stable taxes at around 10%. Now, his taxes have surged from $1,600 to $2,200, leaving him feeling squeezed. He pointed out that even with a strong commitment to the schools, these tax hikes could turn residents against future funding measures.
Indeed, 192 out of Wisconsin’s 421 school districts posed referendum questions this year. In Madison, voters approved $607 million in funding. Still, without an increase in general school aids, the burden falls heavily on local taxpayers. Madison’s tax increase contributes significantly to the statewide rise in K-12 levies, which—notably—would still have surged by 6.9% even without Madison’s figures, marking the highest rate in 25 years.
In Wauwatosa, property taxes have skyrocketed by over 30%. Cortright, who has sent five children through the local school system, feels conflicted. He recognizes the benefits of funding education but worries about potential upcoming tax increases from both schools and the city.
Overall, property tax bills are projected to climb higher. Statewide, gross property tax levies could grow by 5%, a jump from last year’s 4.4% increase—the sharpest rise since at least December 2007. With housing affordability already a major issue, homeowners are likely to express concerns about these rising costs.
As we navigate this changing landscape, taxpayer awareness and dialogue will be essential to balance funding educational needs and housing stability.
