Wisconsin is considering a massive shift in how public and choice schools get their money.
The Wisconsin Assembly approved the plan to decouple the Racine and statewide school voucher programs, replacing the local property tax money that currently pays for those programs with state dollars.
“Currently, legacy charter schools are completely funded by [general purpose revenues]. The Milwaukee Choice program will be funded completely by GPR by 2025,” Rep. Ellen Schutt, R-Clinton, said. “What this bill does, is says that new independent charter schools, and the rest of the choice program should also be funded by GPR and not by aid-reductions from the local school district.”
That would shift millions of dollars for choice schools in Wisconsin from local school districts to the state.
It would also mean a steadier and more reliable stream of dollars for choice schools.
“Decoupling resolves an issue that involves how the current funding mechanism affect public schools and property taxes. This has been a sore spot that creates unnecessary tension between public and private schools,” School Choice Wisconsin President Nic Kelly told The Center Square. “Decoupling is good tax policy that was already enacted for Milwaukee years ago. We want the rest of the state to be treated the same way.”
Decoupling would mean a boost for public schools. Schutt’s legislation would give public schools a one-time, 25% revenue limit increase. The legislature says that will cost as much as $351 million for the next school year.
Some public schools could end up losing money in general state aid, but the decouple legislation would hold them harmless.
“This bill will really help our public schools when they’re setting their budgets every year, giving them some idea about how much money they truly will have,” Schutt added. “It will fix the confusion that is currently out there with the way we fund choice and charter, because it’s different based on the type of school it is. We had some administrators come down to testify and say that this was really a great idea, and actually Gov. [Tony] Evers supported this idea when he was the superintendent back in 2015.”
Rep. Joel Kitchens, R-Sturgeon Bay, however, said during debate on the plan that Evers’ office no longer wants to talk about decoupling.
The proposal next heads to the Wisconsin Senate.
