The information presented below documents the economic dynamics confronting the Manitowoc Public School District.
The first page shows MPSD funding per student is substantially below the state average. The data indicates a relatively small portion of this deficit is from shortfalls in state and federal funding. The data shows funding for the district from local sources is far below average. In order to be average in overall funding, we would need to receive an additional one million dollars in state funding, an additional one million dollars in federal funding, and we would need to collect an additional 6.5 million dollars in local taxes and fees. (Beginning with the 2004-05 school year, the district is no longer forfeiting federal funding for the National School Lunch Program, so we should see some improvement in the federal funding area.)
The second page presents various facts about our district based on Wisconsin Department of Public Instruction data for the 2001-02 school year. If you compare funding data from the first page, you will note that the total funding deficit of 7.3 million dollars in 2001-02 grew to 8.5 million dollars in 2002-03. The low funding level of the district is evidenced by our district's low teacher/student ratios and even lower administrator/student ratios.
The third page lists funding per student for each school district in CESA 7 (Cooperative Educational Service Agency). CESA data is useful because it allows comparisons with other communities that share the same regional economy. Out of the 37 neighboring school districts in our area, MPSD is in virtually last place in providing educational funding on a per student basis.
The fourth page is a comparison of staffing levels in CESA 7. While MPSD's ranking of teacher/student ratio is below average, 31st out of 37 districts, it is rather good considering we are last in revenue per student.
The fifth page is compilation of Wisconsin Department of Revenue data listing changes in equalized property value by county. Counties in CESA 7 are highlighted. The listing shows Manitowoc County is second from last in property value growth out of 72 counties. Manitowoc County grew just 2.91% in property value, almost one third of the state average of 8.45%.
The sixth page is WDOR data showing changes in property value by city. Among Wisconsin's 30 largest cities, property value in the City of Manitowoc had the least growth of just 1.79%, which is less than one quarter the average city growth rate of 8.00%. The city in second last place gained property value more than twice as fast as Manitowoc.
Property tax rates for the school district are determined by dividing the tax revenue requirement established by the school board by the total equalized property value of the school district. Growth in the equalized value of the district cushions the impact of revenue increases on the tax rate. Our district is in the difficult position of already having a very low revenue base and very little growth in the equalized property value of the district. This situation is aggravated by reductions from the two thirds funding obligation previously provided from the state, and increases in many district operating costs.
The district is already operating with high staff to student ratios and limited resources. If the district were to attempt to maintain a zero tax rate increase, the necessary cuts in staff and services would erode educational quality below what is acceptable to most residents. All school districts must adapt to an increasingly difficult tax environment. MPSD is facing greater negative impacts because the district is already operating with very low funding and because of stagnation in our local economy.
If our district had experienced equalized property value growth at the Wisconsin average of 8.45%, our current budget would result in no property tax rate increase. If our property valuation had grown at the average rate of the other counties in our CESA, we would see a slight increase in the school tax rate. Unfortunately, the low growth in the valuation of the tax base of the school district does little to buffer taxpayers from significant increases in the operating cost of the district.
Projecting this information over several budget years leads to an inescapable conlusion: Sustaining a viable public school system without significant tax increases will not be possible unless there is dramatic improvement in the city's economic condition.
Revision: Sept. 17, 2004
Page 1 - Revenue Per Student (pdf) (jpg)
Page 2 - MPSD Facts (html) (pdf)
Page 3 - CESA 7 Revenue (html) (pdf) (xls)
Page 4 - CESA 7 Staffing (html) (pdf) (xls)
Page 5 - Equalized Property Value by County (html) (pdf) (xls)
Page 6 - Equalized Property Value by City (html) (pdf) (xls)
