Each year, Wisconsin property taxpayers contribute more than $6.5 billion in local school levies. Those dollars are commonly understood to support classrooms, teachers and student services. In reality, a large — and growing — portion is diverted to debt service, a non-negotiable financial obligation before a single classroom dollar is spent.
In fact, the debt-service share of the local levy continues to grow, not because students are receiving more, but because past borrowing decisions increasingly dictate today’s budgets. Fortunately, at least one school district is showing that a debt free future is possible.
Statewide, nearly 18% of all local school levies — about $1.18 billion each year — are used to service debt. In practical terms, almost one out of every five local school tax dollars is unavailable for instruction or student support because it has already been committed elsewhere. Unfortunately, long-term debt has become a routine feature of school finance rather than an exception.
Looking at debt on a per-student basis makes the impact clearer. Across Wisconsin, districts levy an average of $1,483 per student each year simply to service existing debt. In districts that carry any debt at all — roughly 85% of districts statewide —that figure rises to $1,550 per student, before any money is spent in a classroom.
At the same time, Wisconsin is experiencing sustained enrollment decline, and while per-pupil revenue limits may decline with enrollment, existing district debt does not shrink when enrollment falls. The obligation stays fixed, and the burden shifts. Even if no new debt is added, fewer students are left to carry the same costs.
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30 October 2025 Madison School Board approves a $668,000,000 budget for 25,557 “full time equivalent” students.