Waunakee Enrollment Lower Than Projected--Board Reduces Levy

Waunakee enrollment 26 less than projected; levy reduced $173K

Source: Waunakee Tribune 10-5-11
After district officials already lowered their estimated tax increase to 2.1 percent earlier this month in advance of a planned refinance of the district's debt-service fund, the district is again lowering the tax burden on Waunakee property owners, this time by an additional 0.7 percent. So when property owners receive their bills, they'll see about a 1.4 percent increase in their school tax levy.

The new numbers come after the district saw less than anticipated growth in student population taken during the school's annual September head count.

In the count, taken on the third Friday of classes, Waunakee had 3,874 students reporting to classes, up 180 students from the previous year. It's fewer than the 3,900 students district officials thought would be attending class, meaning the district is losing out on $172,791 in anticipated revenue under the complex revenue cap formula.

Because the enrollment count is a direct relationship with school revenue streams - as one goes up the other does, too - a lower enrollment means districts can't raise as much money. That means districts can cut from one of two streams of income, state aid or property taxes. 


Sun Prairie enrollment 32 less than projected; residents get ...bupkis?
So...Waunakee enrollment falls 26 short of projections and they cut the tax levy all on their own. Do not hold your breath that Sun Prairie will do they same.  Why?  Because SPASD can be counted upon to squirrel money away for pet projects.  Suddenly, each spring they "find" money to do things like complete the very expensive (and far more costly than projected) remodel of the district office.

This time, they have somewhere between $200,000 and $300,000 to play with.  On top of $278K in unanticipated aid from the state.  And another believed $200K or more from open enrollments. Of course then there's miscellaneous flotsam and jetsam built into the budget which likely totals another $200K.

Full Disclosure
 Unlike the Sun Prairie school district, which will ONLY tell you things that make them look good, we provide the WHOLE story.  Consequently it should be noted that while Waunakee DID cut the tax levy in response to the lower enrollment than projected, they kind of had to.  Waunakee in the last 2 years has taken to levying right up to the revenue limit.  So...when enrollment falls shy of projections, then the revenue limit is decreased, which means the district has to cut revenues (and in turn shave spending).

If the district is already proposing to tax right up to the revenue limit, as Waunakee, then the district can either turn back (reduce) its state aid, or reduce the amount of money it proposes to tax property owners.  In Waunakee's case, since they already had taken the maximum 10% reduction in state aid, its only option was to reduce the tax levy. So really...they didn't have a choice.

What is important in all this, however, is to note that there IS a connection between projected enrollments  and spending.  A district budgets for its best guess at enrollment, and there is a general expenditure per student "formula".  If enrollment is less than projected, the district SHOULD revise its budget and spend an appropriately lower amount.  In Sun Prairie's case, the district has not taxed to the revenue limit (to their credit).   Therefore they can legally spend any "over" budgeted amount (due to enrollment) because there is "room under the [revenue] cap".