Understanding Your Property Tax Bill

Understanding your tax bill: Why state policy, not local spending, is driving increases

Much of the frustration over higher property taxes is directed at school districts; however, state policy choices play a significant role.  Had there been no state reduction of state aid and no increase to private voucher schools, the district levy increase would have been 5.2%.

For the 2025-26 school year, the Sheboygan Area School District received $2.6 million less in state general aid funding. As a result, local property taxpayers will have to cover a larger share of school operating costs, which is likely to lead to higher 2025 tax bills.  

Several external factors continue to influence our financial situation:

• No increase in state aid to public schools in the current biennial budget, despite a $4.6 billion state surplus, shifting the burden of $2.6 million to local taxpayers.
   
• Special education reimbursement rates are falling far short of the state’s promised 42%, resulting in an estimated $800,000 shortfall for the SASD.
   
• The $325 increase in the revenue limit falls short of inflation and will force the SASD to make approximately $1.6 million in reductions.
   
• Increasing voucher school payments account for approximately 19% of our total tax levy ($7.3 million), despite local voucher enrollment remaining largely stagnant.
   
• The recently approved middle school construction referendum has no impact on the district’s operating budget and does not contribute to this tax levy increase.
   
• Since 2009, the amount of money our district receives for each student has not kept pace with inflation. This means we are now short approximately $3,571 per student, which amounts to around $32.5 million less each year.
   
• Wisconsin has dropped from 11th to 26th in per-pupil funding, and the decline has been the fastest of any state in the nation.

What Contributed to the Sheboygan Area School District Levy Increase?

The 2025 Sheboygan Area School District tax levy increased by 15% from the previous year.  Here is a breakdown of the 15% increase:

• 7.7% from a $2.6m shift from state general aid to local property tax (state policy decision)
   
• 5.4% from an increase to the district’s state revenue cap
   
• 2.1% from an increase to private voucher schools (state policy decision)
   
• -0.2% from a decrease in the district's referendum debt service fund (no 2025 levy increase related to the two middle school referendum projects)

The SASD is proud to retain its Moody’s Aa1 bond rating and will continue to take the necessary budget reduction measures to ensure we remain fiscally sustainable and responsible. We do not take the responsibility of being efficient stewards of taxpayer dollars lightly, and we appreciate the support and understanding of our local taxpayers as we navigate a state biennial budget that was unfriendly to public schools and local taxpayers.