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Legislative Update


DPI releases July 1 (preliminary) general aid estimates

by | Jul 5, 2022 | Legislative Update Blog, State Budget, State Issue | 0 comments

On Friday, July 1, as required by state law, the DPI released estimates of the general school aid amounts each public school district will receive for the 2022-23 school year.

These amounts are unofficial estimates intended to assist school districts to develop their 2022-23 school year budgets.

These July 1 estimated aid amounts are calculated based on budgeted dollars submitted by school districts.  For that reason, they are subject to change when the DPI releases the official certified general school aid amounts on October 15.  The Oct. 15 amounts will be calculated based on audited data reflecting actual (rather than budgeted) spending by school districts.

According to the DPI, of the state’s 421 school districts, 290 districts (68.9 percent) are estimated to receive more general aids than in 2021-22, while 126 districts (29.9 percent) are estimated to receive less; five districts are estimated to see no change in general aid between the 2021-22 and 2022-23 school years.

A school district’s general aids can increase or decrease due to changes in any of the three local factors comprising Wisconsin’s general equalization aid formula — property valuation, enrollment, and shared costs — as well as a difference in funds available from the state.

Although lawmakers appropriated $5.2 billion for general school aids in 2022-23, an increase of 3.7 percent from 2021-22, they did not adjust state-imposed school district revenue limits. As a result, any new aid a school district receives must be used to offset (reduce) property taxes.

The aid estimates reported on July 1 do not include per pupil categorical aid, which will be paid in March 2023. Under current law, each district will receive $742 per pupil based on its three-year rolling student membership count, which will include the third Friday in September 2022 count.

 

Note: Currently, the DPI uses prior year data (data from the just completed school year) to calculate those general equalization aid formula factors that vary from district to district. The current timeline—with an Oct. 15 aid certification—allows the DPI, to the greatest extent possible, to use the most current actual, verified (e.g., audited) data available.  In other words, it allows the DPI to use audited data from each district’s annual reports to determine shared cost and membership. It also ensures that all adjustments to equalized property values have been made.

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