Even a
partial fix to the Milwaukee Parental Choice Program funding flaw that slams city of Milwaukee property taxpayers in their wallets could greatly reduce the projected property tax levy, even if the Milwaukee School Board decided to go to the revenue limit.
That's right.
More money for MPS would cost Milwaukee property taxpayers
less if the governor and state legislature were willing to repair the unfair voucher tax.
Right now, MPS pays 45% of the costs of the Choice program -- the state takes the money right off the top from the district's state aid -- and the state pays the other 55%. (The state aid formula is based partly on the number of students enrolled in a district. Although MPS must pay for a good chunk of the Choice program, the district is not allowed to count any of the Choice students in its enrollment for state aid purposes. The technical term for that is "double whammy.")
Not to worry, the state says. While the district will lose about $58 million in state aids for FY09 because the money will be diverted to voucher schools, MPS can recover the money by raising property taxes on city residents by $58 million.
If the 45%/55% cost share were modified so that MPS paid 25% and the state paid 75%, the district would be able to keep an additional $25.8 million in state aids. That, in turn, means it would need to levy $25.8 million less in property taxes.
Right now, without the fix, the district would need to increase the property tax levy by 17.15% to use the full authority of the district's revenue limit and to maximize future state aid.
If the 25%/75% cost share were implemented, the district would be able to reach that revenue limit with a levy increase of 6.9% -- which happens to be the average levy increase in school district in southeastern Wisconsin.