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Effects of the Revenue
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Wisconsin Act 16
In 1993, Wisconsin Act 16 limited the amount of money school districts could raise by freezing spending at 1992-93 levels.(4) The legislation sought to control increases in property taxes by limiting the total amount of money that public school districts could raise from one year to the next.(5) For example, during the 1993-94 school year, the annual increase was limited to $190 per student. Beginning with the 1994-95 school year, the per pupil dollar amount was to be adjusted for inflation. However, in 1995, the original legislation was changed; the revenue controls were made permanent, and the per pupil increases were set at a fixed dollar amount ($200 per student in 1995-96, $206 for 1996-97, and slightly less than $209 per student in 1998-99). In 1995, the state also committed to funding two-thirds of the costs of funding public education.(6)
As a result of the state paying a greater share of school costs, property taxes for the average Wisconsin homeowner declined approximately 5.6% from 1995 to 1996. Between 1996 and 1997, property taxes also showed a slight drop. However, by 1998, property taxes were again increasing at an annual rate of close to five percent.(7) It is estimated that in 1998 schools will collect 47% of the local property tax; the remaining 53% will be for “other” (including county and municipal governments, and technical colleges).(8)
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