Wisconsin Budget Delay Favors Rich Schools

Amy Hetzner:

The delay in approving a budget in Wisconsin could end up benefiting residents in the state's wealthiest communities.

Legislators were unable to meet a Sept. 28 deadline set by the state Department of Public Instruction that would have allowed them to increase general aid to school districts by $79.3 million in the 2007-'08 school year in time to reduce next year's tax bills.

So on Tuesday, when they approved the second-latest budget in state history, they did what some called the next best thing by putting the same amount into the school tax levy credit. The credit increase is expected to be signed into law by Gov. Jim Doyle.

That would be a boon to residents in districts such as Elmbrook and Mequon-Thiensville, where taxpayers have long complained that their money is siphoned off to support schools in other parts of the state. But it would mean less money for school systems such as Milwaukee and Racine, where the argument is that residents with less wealth need more help to ensure their children get a chance at an education on par with those in richer communities.

The reason for the difference is that, unlike general school aid, the state's school levy tax credit is distributed based on the school property tax burden in individual municipalities. That largely means the credit goes to residents in the wealthiest areas.

Posted by Jim Zellmer at October 25, 2007 6:34 AM
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