The School District of Janesville and property tax payers in Janesville appear to be in a win-win situation. The School District of Janesville’s equalization aid from the state is projected to increase $2.3 million to approximately $65 million according to numbers released by the Wisconsin Department of Public Instruction.
The State of Wisconsin issues a revenue limit or control on the revenue a school district is entitled to receive each year. The control applies to revenue received from two sources: general state aid (equalization, special adjustment, and integration aids) and select local tax levies. The School District of Janesville’s 2012-2013 revenue limit is estimated to be $93.8 million which is $630,532 less than what the 2011-2012 revenue limit was. In addition, the proposed 2012-2013 revenue limit is $555,041 more than the actual revenue limit incurred in 2011-2012 because the Janesville Board of Education taxed $1.2 million less than the maximum revenue limit last year.
The School District of Janesville, if taxing to the maximum allowed by the State of Wisconsin, will set the General Fund tax levy at $28.7 million which is $1.8 million less than the amount levied by the Janesville Board of Education for the 2011-2012 school year. Furthermore, the School District of Janesville will receive an additional increase of $50 per student in adjustment aid, which could possibly total $498,450 if the maximum tax levy is achieved and student enrollment remains stable.
So what does this mean for the School District of Janesville and local property owners? If the Janesville Board of Education were to levy the maximum amount allowed, $28.7 million, the average property in Janesville would see a tax reduction of $34.00 per year ($112,000 home). This would represent a revenue increase at the state and local level of $555,041 for the School District of Janesville. The District would also qualify for an additional $498,450 in the estimated per student aid adjustment for taxing to the maximum revenue limit.
The School District of Janesville could potentially realize an increase in revenue of $1 million for the 2012-2013 school year while the property tax payers could observe, on average, a decrease.