Stoughton Area School District warned of near-$3 million tax-levy increase if state aid estimates hold

Erica (staff member) told the Stoughton Area School District Board of Education that the district could face a sizable increase in its property tax levy for fiscal 2025–26 if current state aid estimates are upheld. "We would be receiving about $1,900,000 less this year than we received last year," Erica said, citing the district's July 1 estimate.

Erica said the two main drivers are a $325-per-pupil increase in the state revenue limit that had no offsetting increase in equalization aid and the multi-year step-up approved in the district's recent operational referendum. "When you have a situation where...you receive less in aid than you did in the prior year, your tax levy is going up even though you don't necessarily have additional spendable resources," she said.

The finance briefing explained how the district's revenue-limit calculation and state aid certification determine the tax levy. Erica said the district's revenue limit is calculated by multiplying the district's enrollment by the per-pupil amount the state sets; the…