Hi Scott,
Thank you for your patience – My colleague, David, mentioned that you inquired about the recent increase in school-related property taxes in the Merrill School District. I know he referenced Governor Evers’ 400-year veto, and I wanted to share two videos that further explain this issue. Please keep in mind that the 400-year veto is what locked in the revenue limit increase of *$325/pupil annually, as noted below.
- The first video provides a more detailed breakdown of the 400-year veto by Senator Testin: https://www.facebook.com/share/v/1DQToa48gX/
- The second video is a brief explanation by Senator Felzkowski following the Wisconsin Supreme Court’s decision to uphold the 400-year veto: https://www.facebook.com/share/r/17gAJUWnVo/
Senator Felzkowski understands that a 30-35% increase in property taxes is significant and frustrating, and we hope the following information provides helpful context.
To start, let me briefly explain some terms. Revenue limits are set by the state and cap how much a school district can collect from a combination of general state aid and local property taxes. State aid to school districts falls under one of two categories:
- General school aid, which offsets property taxes by displacing money that would be raised from revenue limit authority, and
- Categorical aids, extra money that can be spent above revenue limits that support specific needs such as special education, achievement gap reduction, transportation, and bilingual education, among other classroom-related areas.
In the 2025–27 Wisconsin State Budget (Act 15), the Legislature chose to prioritize classroom funding by making substantial increases in categorical aids. General aids don’t flow through to property taxpayers equally throughout the state, so we decided to put our money directly to the bottom line and let local school boards decide how much additional money to raise in property taxes.
Constituents have been referencing Superintendent Murray’s Superintendent’s Corner and Facebook video last week as their source of information, but we’d like to point out that he failed to mention the significant increase in categorical aid. Statewide, categorical aids increased by a historic 20.2% over the prior biennium (Comparative Summary of Provisions: Act 15 – Public Instruction – page 4, table 3).
Additionally, school district revenue limits went up *$325/pupil annually (because of the Governors 400-year veto), giving districts greater flexibility when setting their budgets. As a result, school districts, including Merrill, had two options:
- Increase their budgets up to the new revenue limit, using the property tax levy to fund their budgets (as reflected on your property tax bill), or
- Restrain their budgets to stay closer to prior tax levels and reduce the impact on local property taxpayers, like yourself.
In conclusion, the Legislature made the decision to invest more funding directly into classrooms while allowing local school districts, such as Merrill, to determine how best to manage their budgets. Merrill chose to increase their budget, knowing that general school aid remained flat in the 2025-27 State Budget. That local decision contributed to the property tax increase. (LFB: Property Tax Estimates Under 2025 Act 15).
Senator Felzkowski understands that this increase has a real impact on residents and appreciates your engagement on this important issue. It is also worth noting that in the 2024-25 school year, the Merrill School District ranked 67 out of 421 districts statewide (top 16% of the state – see page 13) in total school funding received, reflecting strong support from the state. Senator Felzkowski has been, and will continue to be, a strong advocate for ensuring school funding is directed where it’s needed most.
The local decision to increase Merrill’s property tax levy was a combination of factors, including the state prioritizing categorical aids instead of general aid in a bipartisan budget. Senator Felzkowski encourages you to continue to communicate with your local school board about budget decisions so your voice can be heard regarding the impacts on residents.
We hope this information is helpful. Thank you again for reaching out, and please do not hesitate to contact our office with any further questions or concerns related to state issues.
Kindly,
Gabi