State budget changes drive tax rate increases for Medford schools

Medford School District taxpayers can expect to pay more this year than last year as a result of changes approved as part of the state budget.

At Monday’s school district annual meeting, finance director Audra Brooks presented an overview of the district’s estimated budget. The projected budget currently calls for total district spending of $37.7 million.

According to Brooks, funding to cover the budget comes from several different sources including local taxes, state aids, open enrollment revenue and federal funds.

The local tax levy accounts for about 19.98% of the budget at about projected $7.6 million. The district will also see about $10.1 million in open enrollment revenue, amounting to about $26.48% of the total budget. Brooks noted that this was very high compared to other districts in the state with about $1 million coming from open enrollments into the traditional brick and mortar school buildings and the remainder from open enrollment into the Rural Virtual Academy charter school. The RVA has grown steadily in enrollment over the years to be at or slightly more students than the traditional school buildings.

State shared revenues account for 46.41% of the overall budget for the district at $17.71 million. Federal sources account for $2.59 million or about 6.79%, this includes reimbursements for Medicaid services billed for students with special needs and other federal programs. All other revenues account for about $125,000 or about one-third of a percent of the total budget.

As part of the 2023-2025 state budget there were changes to the funding formula, most notably there was an increase in authorized spending to $11,000 per student for districts such as Medford where the per pupil spending had been capped at about $9,000 per student. This was done statewide to be more equitable because when revenue caps were first imposed on districts 30 years ago in 1993, low spending districts at the time were kept artificially low while higher spending districts at the time could remain higher.

In addition to the increase in per pupil spending that was authorized in the budget, the amount of vouchers for students attending private schools was also increased. The voucher funds come out of the same local pool of tax levy dollars as the funding for the public schools.

What this all means to the individual taxpayer remains something of a question mark. At the time the budget was prepared, the projected tax rate was $7.09 per $1,000 of equalized value. This would put the school taxes on a $150,000 home at $1,063 this year. This is up from a tax rate of $5.42 per $1,000 of equalized value that was approved last October. This amounts to an increase of about $250 on a $150,000 home. While it is a jump over last year, the rate is still below what the average has been over the past decade.

Brooks cautions that the actual tax rate will be lower when the school board formally sets it in October. This will be due to knowing the enrollment counts for the state formula as well as having the finalized equalized value changes for the district.

Brooks noted that the equalized value totals for the county as a whole jumped more than 24% in 2023. “This will drive the mill rate down,” Brooks said. The district will not have the numbers to set the final rate until October 15.

Following Brooks’ review of the budget, electors at the meeting voted to approve the projected budget and tax rate with a show of hands overwhelming in favor of adopting it.

What do you call a beehive without an exit? Unbelievable.

Between the Lines:

There were no comments from residents given either for or against the projected budget. During the annual meeting, any member of the public can be elected to chair it, likewise any resident in the district can make or vote on a motion.

Typically the school board president is selected to chair the meeting, however in the absence of Dave Fleegel, the motion was made and seconded to have Pat Sullivan serve as chairman of the meeting.

School districts are required to hold annual meetings each year and in addition to approving a projected budget and levy amount, they also approve the purchase or lease of buildings as well as setting the pay for school board members.

At Monday’s annual meeting, electors:

  Authorized the continued lease of space for school offices for the RVA, continued leasing of a learning center for the RVA in Mosinee, and for a lease agreement for hockey and other purposes with the Simek Center. Brooks noted there had been a change in the law to expand what leases needed to be approved by electors.

  Authorized the school district to acquire needed real estate or structures in the coming year. Without this approval the district would need to call a special meeting of electors if a purchase came up. This is a routine authorization.

  Authorized the school district to enter into a lease agreement to potentially lease land on CTH Q near the elementary school. Sullivan explained this would be if the YMCA proposal moved forward. He emphasized that any lease would need to be approved by the school board and that this action simply allows the board to take action if something comes up with it in the coming year.

  Set the salaries of the school board members to be the same as last year at $125 per board meeting for the board president, $120 per meeting for the clerk, and $100 per meeting for all other board members and $60 per meeting for all committees.