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Board hears equalization aid basics; district not aided on tertiary level
Summary
A district finance presenter explained how equalization aid is calculated and told the La Crosse School Board that La Crosse is close to the state average per‑pupil shared cost but is not funded at the tertiary aid level, a status that can reduce state aid when local spending increases.
A district finance presenter gave the board a step‑by‑step explanation of state equalization aid and what it means for local property taxes and the district budget. The presenter said equalization aid is the state portion of the revenue‑limit calculation and is driven by a district’s property‑wealth‑per‑pupil figure rather than student need. "Equalization aid is the state portion of the revenue limit and ... provided through the formula based on property wealth per pupil in the district," the presenter said.
The presenter walked members through shared‑cost‑per‑member numbers for 2023–24, saying the state average was about $12,438 and La Crosse’s shared cost per member was roughly $12,298, placing the district near the state mean. The presenter explained the district is not funded on the tertiary aid level (described in the presentation as "negative tertiary aid"), meaning La Crosse receives no tertiary aid and changes in local expenditures can affect aid. Board members asked whether that meant state action could reduce aid or shift costs to local levies; the presenter replied that July 1 estimates can change when the October 15 audited expenditures are posted and that a special "hold‑harmless" adjustment limits year‑to‑year aid declines to no more than 15%.
Board members also discussed the interaction between special education aid and equalization calculations. The presenter noted that some increases in state special‑education funding would be phased in on later years' aid calculations and that the district covers some special‑education costs from its general fund now. The presenter emphasized that the state pot of dollars did not increase in the recently adopted state budget, which can leave districts to make up differences through local levies. The board did not take action on funding at the meeting; staff said aid estimates will be refined once audit numbers are available in October.
