On Thursday, Governor Scott Walker announced a $100 million property tax cut over two years . Drawing down projected general fund balances, the governor is proposing to add $40 million to the school aid formula this year and $60 million next. By not raising school district revenue limits—which are the sum of school aids and property taxes—this acts to reduce property taxes by the amount of the increased aid. It does not provide additional money to schools.
According to the governor, his proposal would reduce this December’s property tax bill $13 on the median valued home compared to current law. However, because the relief is run through the school aid formula, tax changes will vary widely throughout the state.
Our analysis shows 65 districts with about 5.5% of students would get no benefit from the cut. In another 197 (about half of all students), the additional aid would result in a school levy cut of about 1% or less. In the remainder, the cut would likely be more than 1%.
Among the state’s largest districts (5,000 or more students), all would likely see a levy reduction between 0.8% and 1.2%, except Elmbrook. That district is high value and thus would likely not benefit from the aid increase.