The Oconomowoc Area School District Board members adopted a budget and certified a tax levy resulting in a minimal increase ($.05) in the mill rate compared with 2023-24, which was the lowest mill rate in the District’s history. The Fund 10 Operating Budget totals $75.6 million which is supported by a $47.8 million tax levy. The property tax levy is the local portion of State-local funding partnership better known as Revenue Limit Authority. The State is providing funding of $14.5 million through Equalization Aid. The combination of State Equalization Aid and the local property tax account for 82.8% of the District’s overall revenues.
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Equalization Aid
The District’s Revenue Limit Authority saw a shift with more reliance on the local property tax as Equalization Aid decreased 7.4% from the prior year. The reduced Aid provided an unfavorable result for our community shifting more of the State-local funding partnership to the property tax levy. While the District is receiving $1.2M less Equalization Aid, the loss is coming after a significant spike in Aid in 2023-24.
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ESSER Funding
The District continues to rely on federal funding through ESSER grants to balance its operating budget. For 2022-23, ESSER grant claims accounted for $1.3 million in revenue and in 2023-24, they accounted for $2.9 million. The budget for 2024-25 includes $611,000 of remaining ESSER funds, which must be fully used by September 2024.
Mill Rate
Overall, the 2024-25 budget increased 1.8% over the 2023-24 budget. The mill rate increased by $.05, from $6.09 to $6.14 per $1000 of equalized property values. A 7.75% increase in property values throughout the District (inclusive of a 1.55% increase due to net new construction) helped to control the mill rate change after last year’s historically low mill rate.
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School Levy Tax Credit
For 2025 tax bills, the State increased funding of property tax relief with $80,000,000 of additional funding for the School Levy Tax Credit (SLTC). The SLTC impact results in a larger credit to the school levy on a homeowner’s tax bill, which reduces the school district’s portion of their tax bill. The increased State levy funding will help to partially offset the increased school levy for 2024-25.
Summary
Each October, the Board must adopt the budget, certify the tax levy, and establish the tax rate after the Department of Revenue determines property values in the District and the State certifies Equalization Aid (it’s portion of educational funding). Tax bills are sent to property owners in December.
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Above: revenues by source
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Above: expenditures by function
The 2024-25 budget is balanced, while incorporating key initiatives, through careful control of costs and strategic allocation of limited resources. This budget supports the instructional mission of OASD as demonstrated by sustaining these key initiatives:
- Pupil-to-teacher ratios which are appropriate for each grade, and which support a positive environment for learning.
- Support for the Strategic Plan’s focus on literacy including professional learning of staff, instructional materials, and curriculum implementation.
- A Multi-Level Systems of Support (MLSS) process that meets the needs of all learners and decreases the need for referral to special education.
- Math and literacy intervention time at the elementary and intermediate schools to address learning achievement gaps and improve learning growth.
- Restructured MLSS facilitator roles at the intermediate schools to improve data-informed decision-making to mobilize resources in pursuit of meeting the needs of all learners.
- Consistent annual funding for curriculum materials, instructional technology, and staff development, all which place OASD among the leading school districts in Wisconsin.
- A technology plan that supports a 1:1 student-to-device ratio in grades 5K through 12 and 5 iPads per classroom in 4K along with reliable access supported by a robust network and infrastructure.
- Continued support of a student life-ready competencies screener, Life Ready curriculum, and pertinent staff professional development.
- Student mental health and well-being is supported by providing efficient access to community partnerships with GALS Institute and Family Services of Waukesha.
- Student services staffing aligned with a staffing metric that balances caseloads and provides support for students.
- A commitment to facility preventative maintenance, renovation, infrastructure improvements, and long-term capital project funding.
- A sustainable educators’ compensation model that provides competitive compensation and attracts and retains OASD’s high-quality certified staff.
- Competitive salaries and benefits for all employee groups.
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Moody’s Investors Service upgraded the Oconomowoc Area School District’s issuer and bond ratings from Aa2 to Aa1 and also assigned an Aa1 rating to the District’s General Obligation School Bonds, Series 2024 with a par amount of $19.3 million. The upgrade reflects the District’s improving financial position with strong reserves and expanding tax base. With the upgraded rating, OASD is one of only 12 WI districts to maintain the exemplary rating, and only 3 districts are rated higher.
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