The Madison Metropolitan School District has announced that the school portion of the local property tax will be lower than anticipated in 2008-09.
The drop in the rate translates to an anticipated savings of $67.50 in 2008-09 for a home assessed at $250,000.
“What this means is that property tax rates will be lower because the overall district property values have increased more than we originally expected, while building the 2008-09 budget estimates,” according to Superintendent Dan Nerad.
“The referendum on November 4, 2008 is still necessary to avoid $8.1 million of reductions to direct programs to students within the classroom for the 2009-10 school year,” according to Nerad. “This positive news simply reduces the school portion of individual property tax bills beginning in the 2008 tax year. The Madison School District would still need permission to go above state imposed revenue limits on property tax increases to meet increasing annual expenditures such as utilities, transportation, and employee compensation increases guided by state law.”
With a successful passage of a referendum on November 4, 2008 the Madison School District is committed to creating efficiencies or reducing services by $3.1 million in the 2009-10 school year. This will be accomplished by planned cost saving measures and further financial strategies that will have the least impact on learning in the classroom.
Under the current funding formula in Wisconsin, the property tax levy is set by a state law referred to as the revenue limit formula. The total levy for the 2008-09 school year was approved to increase by $6,039,802 or 2.74% over the prior year. Due to property values increasing at a higher rate than expected, residents within the school district boundaries will see a direct benefit as the property tax bill into the future. With a successful referendum passage for a home valued at $250,000 in 2007-08 the total property tax bill is projected to increase $22 by the 2011-12 school year.
This chart shows the estimated tax impact to owners of a $250,000 in 2007 from 2007-08 through 2011-12.
Estimated school tax rate 2007-08 to 2011-12
Y
Year Tax Rate Tax Bill
2007-08 $10.08 $2,520.00
2008-09 $ 9.81 $2,452.50
2009-10 $ 9.92* $2,480.00*
2010-11 $ 9.70* $2,522.00*
2011-12 $ 9.40* $2,542.00*
*These amounts are estimates
Original estimate of property value increase in 2008 for Madison area property values was 4%
Actual increase in property value in 2008 for Madison area property values was 5.60% (SOURCE: WI Department of Revenue)