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Effects of the Revenue Caps
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Impact of Acts 16 and 27 on Average Property Taxes
As a result of the provisions in Acts 16 and 27, increases in school costs have slowed, and there will be a short period of property tax relief for the typical owner of residential property in Wisconsin. In 1996, the average Wisconsin home had a tax bill of $2,006. This was $118 lower (5.6%) than in 1995. In 1997, it is estimated that the average homeowner will pay $1,985 in property taxes.(7) Overall, this represents a 1% decline ($21) from 1996. However, in 1998, the property tax bill on the average home will increase to $2,127 (a 7% increase over 1997). (Note: the increases in local property taxes could be significantly higher if, for example, the assessed value of the property also has increased.)
Impact of Acts 16 and 27 on School Districts (From Earlier Studies)
Listed below are six significant findings from studies completed in 1994, 1995, and 1996.
- In 1994, superintendents were asked to indicate what they felt would be the long-term implications of program cuts which already had been, or were likely to be, made. More than 90% of superintendents thought the long-term consequences would be negative.
- In 1994, superintendents were asked to describe the reaction of community members to the budget restraints. Only a few superintendents reported that there was much concern. In 1995, a similar question asked about the reaction of community leaders. Nearly one-half of superintendents (47%) reported that their community leaders tended to support the revenue caps. Only 11% of superintendents said community leaders were opposed to the revenue caps. The remainder, 41%, said “uncertain.”
- In 1995, 78% of superintendents disagreed with the statement, “In the long run, the caps may have a positive effect on my district’s programs and services.” Conversely, 75% agreed with the statement, “In the long run, the caps will have a negative effect on my district’s programs and services.”
- In 1995, 58% of superintendents disagreed with the statement, “It’s too early to say how the revenue caps will affect my district’s programs and services.”
- There are no significant differences among rural/small town, suburban, and urban school districts as to the number of cost-cutting actions taken. Further, the number of cuts is unrelated to per pupil spending amounts (1994).
- In 1996, about 50% of superintendents reported that their district had made at least one attempt to pass a referendum since 1993-94. The primary purpose has been for major renovations or improvements in buildings (50 cases), followed by improvements in technology (34 cases).
Posted February 4, 1998
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