The Oconomowoc Area School District Board members adopted a budget and certified a tax levy resulting in a mill rate decrease of $.35 compared with 2024-25, which is the lowest mill rate in the District’s history. The Fund 10 Operating Budget totals $75.5 million, which is supported by a $51.9 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 $11.9 million through Equalization Aid. The combination of State Aids and the local property tax account for 85.2% of the District’s overall revenues.
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Equalization Aid
The State’s budget did not include increased funding for Equalization Aid, which was a challenge for the District’s Revenue Limit Authority. The loss of Aid provided an unfavorable result for our community, shifting more of the State-local funding partnership away from the State, raising the property tax levy. While the 2025-26 Equalization Aid amount was a 17% loss from the prior year, it approximates the average Aid received over the past decade.
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The District’s Revenue Limit Authority and the local property tax were also challenged by the State’s budget provision that provided increases for Independent Charter Schools (ICS) and voucher programs, exceeding the increase provided to public schools. The local property tax includes $3.2M for voucher programs and $2.3M for ICS. Of the $5.79 mill rate for 2025-26, $.29 is for voucher programs and $.21 is for ICS. The challenge with ICS funding is compounded for OASD because our revenue limit authority per student ($11,762.50) is less than the required funding for ICS ($12,369), resulting in $270,000 of the District’s budget being diverted from our students to make the required ICS payment. Levying for these programs is required by the State and is not at the discretion of public-school districts.
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Mill Rate
Overall, the 2025-26 budget decreased .06% compared with the 2024-25 budget. The mill rate decreased by $.35, from $6.14 to $5.79 per $1000 of equalized property values. An 8.8% increase in property values throughout the District (including approximately a 2% increase from net new construction) helped to control the mill rate change despite a $1.5M increase in the overall tax levy.
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School Levy Tax Credit
For 2026 tax bills, the State increased funding of property tax relief with $125,300,000 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 offset the increased school levy for 2025-26.
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 (its portion of educational funding). Tax bills are sent to property owners in December.
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OASD Expenditures By Function
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The 2025-26 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 Supports (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.
- 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 1 through 12, 2:1 student-to-device ratio in 5K, 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.
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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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