Understanding the Kewaunee School District’s Tax Levy

Wisconsin public schools are primarily funded through local property taxes, supplemented by state equalization aid. This aid helps “level the playing field” so every student, no matter where they live, can access a high-quality education.

Why the tax rate is changing

In the most recent state budget, equalization aid for schools did not increase. Because this aid is a key part of school funding, local taxpayers must now shoulder a larger share of costs.

For the Kewaunee School District, this means the overall budget remains focused on maintaining quality educational programs, but the tax rate for property owners will rise as the district relies more heavily on local funds to offset stagnant state support.

Our commitment to taxpayers

During the referendum planning process, the district promised taxpayers that the debt service portion of the levy would remain stable. At that time, the district anticipated a potential increase of approximately $0.10 per $1,000 of assessed value due to the referendum.

However, through careful fiscal planning and favorable borrowing rates, Kewaunee has honored that commitment — and gone beyond it. The district has actually reduced the debt levy by approximately $0.08 per $1,000 of assessed value, helping to offset the decline in state aid.

It is important to note that any increase in the overall tax rate is not a result of the referendum, but rather the combination of multiple factors including the reduction in state equalization aid by Wisconsin Legislature.

What is a revenue limit?

A revenue limit is the maximum amount a district can raise through state aid and local property taxes combined. It’s determined by prior-year spending, property values and student enrollment. This limit directly impacts how much a district can spend — and, in turn, the local tax levy.

Equalization aid explained

The State of Wisconsin distributes equalization aid based on property wealth per student:

• Districts with lower property values receive more aid, reducing the burden on taxpayers.

• Districts with higher property values receive less aid, meaning more of their funding must come from property taxes.

As property values in Kewaunee have risen, our state aid has declined. With no increase in aid in this year’s budget, more of the district’s revenue must come from local property taxes — leading to a higher tax rate.

District leaders have worked hard to minimize this impact by lowering other portions of the levy, such as debt and community service costs.

Factors that affect your tax bill

Several factors influence property taxes each year, including:

• Property value: Rising assessments generally increase tax bills.

• District spending: Capped by state-imposed revenue limits.

• Student enrollment: Impacts both state aid and the revenue limit.

• Referendums: Voter-approved projects can temporarily adjust the levy.

Understanding the tax levy

The tax levy is the total amount the district raises from property taxes after accounting for state aid and other revenues. It includes:

• General operating levy.

• Debt service levy.

• Community service levy.

• Chargeback levy, which is a result of having to pay back Dominion Energy Solutions. This obligation will end in two years and drop off of the levy.

• State-mandated voucher payments for students attending private schools (Note: the district has no control over voucher payments — these are set by the state). Currently $0.44 of the total levy goes to voucher schools.

Taxes are then distributed among Kewaunee’s municipalities based on equalized property values, and property tax bills are calculated on your assessed property value. Equalized values are adjusted assessed values that are meant to ensure each type of property has a comparable value regardless of local assessment practices. Areas with new construction or higher property sales may see a larger share of the levy. Assessed values are determined by the local municipal assessor.

Finally, the school levy tax credit, calculated by the state, helps reduce overall tax bills for property owners. However, no new funds were added to the school levy credit this year.