Homeowners in 148 school districts across Wisconsin will be getting an unexpected tax cut next year, but many of those districts would prefer to keep that a secret – and backfill those savings with new spending.
It will be decades before the savings justify the expense – which was considerable. Last year alone, districts collected an additional $92.3 million through the Energy Efficiency Exemption.
The reason for the tax cut is the termination of the Energy Efficiency Exemption (EEE). This loophole allowed school districts to raise taxes for supposed energy efficiency projects without going to referendum.
The energy savings on many of these projects is negligible. It will be decades before the savings justify the expense – which was considerable. Last year alone, districts collected an additional $92.3 million through the EEE. With the program eliminated, property taxes in those 148 school districts will automatically drop $92.3 million.
However, 21 of those districts see this as an opportunity to downplay the true tax impact of their referendums on next month’s ballot. For example, the Hartford J1 School District has a referendum for $5.5 million. According to the district’s website, “If the referendum is approved, there would be no impact on current school tax rates over the life of the 15-year borrowing term.”
Southern Door County Schools has a $6,270,000 building referendum that “would not increase your taxes over current levels.”