School Crossings: Property Taxes in the SDMA

By Joe Zydowsky, SDMA District Administrator

Sorting through the mail this time of year can be an exciting and enjoyable experience. Exchanging Christmas cards and gift packages with extended family members, old friends, and neighbors is a great way to keep in touch and get into the holiday spirit. Unfortunately, mixed in with the season’s greetings are likely to be a variety of bills and this year’s property tax statement. Similar to higher costs for holiday gifts and heating during a very cold month of December, most residents across Wisconsin can expect to pay higher property taxes this year. 

Key Factors Driving the Property Tax Increase

Public school funding in Wisconsin can be a very complex subject, and state-level policy decisions in the new biennial budget are having a direct and significant impact on this year’s school tax levy in the School District of the Menomonie Area (SDMA). Despite good work by the school district and Board of Education to manage a difficult financial situation and keep the SDMA tax rate identical to last year, property taxes will increase for most local taxpayers. The primary factors driving the increase are:

1. Revenue Limit Increase- Public school spending is restricted by state revenue limits. The state allowed for an increase of $325 per student for the 2025-26 school year, which is not even enough to keep up with inflation.

   
   

2. No Increase to State Aid- Despite allowing for a revenue limit increase, the state did not provide any additional equalization aid to pay for it. Wisconsin’s state budget is supposed to cover two-thirds of K-12 public school costs, but 100% of this year’s statewide revenue limit increase was passed on to local property tax payers.

   
   

3. Private School Vouchers- The state created a limited statewide private school voucher program in 2013, but many of the initial restrictions have now been lifted and the program has been expanded to include private schools in our community. To pay for the vouchers, the state requires public school districts to tax for the voucher costs taken from the local school district’s state aid. Property taxes in Menomonie are now $1.4 million higher to pay for private school vouchers in our community, an increase of 41% from last year and 258% over the past five years. If the SDMA’s state aid was not spent on private school vouchers, this year’s local tax levy would have been lower than last year.

   
   

4. Changing Property Values- As municipalities in the SDMA reassess properties, individual tax bills change. Most people will see higher tax bills this year based on increases to the assessed value of one’s property and changes to how the school tax levy is distributed between municipalities.

The administrative team and school board continuously monitor school district finances, but with the start of the new year, the SDMA will once again host a special budget meeting to review the factors and trends that most significantly impact the finances of our schools. This year’s meeting is scheduled for 5:00 p.m. on Monday, January 12, in the boardroom of the SDMA Administrative Service Center. The school board will also be discussing how to get private school voucher costs listed on next year’s tax bill, so property owners can better understand the impact of the state’s private school voucher program on the SDMA tax levy. 

Should school families or community stakeholders have any questions, concerns, or suggestions about finances in the SDMA, I invite you to visit me at the Administrative Service Center on Pine Avenue, or contact me at 715-232-1642. More information about our schools can be found on the school district website (www.sdmaonline.com) and Facebook (www.facebook.com/menomonie.schools).