Understanding School Funding: How Vouchers Shape Local Districts’ Budgets and Planning

As tax bills arrive this season, school funding is once again at the center of conversation in communities across Wisconsin. Public schools, private schools, virtual schools, and homeschool networks all operate within the same taxpayer-supported landscape. For families, these options offer a valuable choice. For school districts—especially in rural areas—they create an increasingly complex financial picture that influences budgets, long-term planning, and the services districts are legally required to provide.
This combined article draws on information shared by area superintendents and principals, including those from Mayville, Horicon and Lomira to help residents understand how school funding works and how vouchers factor into local property taxes.
“This is not about sides. It’s about helping our communities understand how the funding system works,” explained Dr. Scott Sabol, Mayville School District Superintendent.
“The state is trying to fund two school systems (public and private) out of the same funding bucket, and we want to help educate the public to understand the process,” said School District of Lomira Administrator Ty Breitlow.
A Regional Story: State Leaders Weigh In

The exact numbers differ by district, but rural communities across the state face a shared reality: schools are preparing students for the future while working within a funding system stretched by declining enrollment, expanded schooling options, rising student needs, and state-mandated responsibilities that do not change.
Districts stress that public, private, and homeschool families are all part of the same community. The goal is not to promote or oppose vouchers—but to ensure that every taxpayer understands how educational funding works and how statewide policy changes influence local budgets.
Statewide data from the Wisconsin Department of Public Instruction (DPI) shows that the financial impact of vouchers is not limited to one community. For 2025, DPI reports that $310.8 million in local school levies statewide is tied to private school vouchers, the highest amount ever recorded.
In simple terms, this means that more than $310 million that would normally support public schools across Wisconsin is instead being used to pay tuition at private schools. When those dollars shift, public school districts must still cover their remaining costs—such as staffing, transportation, buildings, and special education services. To do that, districts may need to rely more heavily on local property taxes or voter-approved referendums.
DPI data shows that this trend has grown steadily over time, especially as voucher participation has expanded into more communities. Rural districts, where enrollment is already declining due to lower birth rates, often feel the impact more quickly because they have fewer students and less flexibility to absorb funding shifts.
The Department of Public Instruction does not set voucher policy but administers programs as required by law. However, State Superintendent Dr. Jill Underly has publicly expressed concern about the long-term sustainability of Wisconsin’s current funding structure. Underly said Wisconsin is struggling to fund two taxpayer-supported education systems at the same time. She warned that continuing to pull resources from public schools while expanding private school funding puts both systems at risk and forces districts to seek repeated referendums just to maintain basic services
In her 2025 State of Education Address, Underly said the state faces a difficult reality after years of underfunding public schools. She noted that many districts are being pushed toward repeated referendums just to maintain basic operations, while also facing increasing requirements and oversight.
“Turning to referenda, year after year, just to survive. All while facing micromanaging from Madison and endless finger-pointing from lawmakers who too often choose politics over partnership. And here’s the truth: We are starving one system while funding another. We cannot afford to keep pulling resources away from public schools to fund private ones and expect both to thrive. That is not good stewardship. That is not Wisconsin,” stated Underly.
State Senator Chris Larson, who serves on the Legislature’s education committee, echoed concerns about the growing cost of vouchers and how they affect public schools and taxpayers. Larson noted that Wisconsin’s voucher program began more than 30 years ago as a small pilot program but has expanded statewide. He said the program now directs hundreds of millions of public dollars to private schools each year.
Wisconsin State Rep-Mark Born stated what the long and short-term goals of the voucher program are, “In the short term, the goal of the school voucher program is to empower all parents with meaningful options so children can learn in the environment that best supports their success. In the long term, the goal is to expand opportunity for kids and improve outcomes statewide by ensuring all families, not just affluent ones, can choose the school that fits their child’s academic, social, and personal needs.”
Larson pointed out that voucher costs are often not clearly listed on property tax bills because they are built into school district levies. While some communities choose to publish that information separately, many do not, leaving taxpayers unaware of how much local money is being used for vouchers.
He also highlighted differences between public and voucher schools that affect district finances. Public schools are required to accept all students, including those with disabilities, and must provide services regardless of cost. Voucher schools are reimbursed for most of their special education expenses, while public schools currently receive reimbursement for about one-third of those costs. In addition, public schools must hire licensed teachers and administrators and provide transportation, including busing for some private school students.
Larson also noted that public schools may receive students back from voucher schools during the school year, sometimes after enrollment deadlines have passed. When this happens, public schools must absorb the student and provide services, often without receiving additional funding.
Wisconsin State Senator Dan Feyen stated his stance on the program, “The short-term goal is simple, give kids a chance at a great education regardless of their background…Long term, I’d like to see the choice program continue to grow and for the successes to be measurable. Again, I don’t think this needs to come at the expense of the public education system. We can and should have both options and well-funded, effective, public schools.”
Together, DPI data and comments from state leaders help explain why school funding has become a growing concern in rural communities. As voucher participation increases and enrollment declines, districts are asked to do more with fewer resources while continuing to meet every legal requirement.
While perspectives differ on the future of school choice in Wisconsin, state and local leaders agree on one point: understanding how education dollars move is essential. As districts, families, and lawmakers continue these discussions, transparency and public awareness remain central to shaping the future of education funding across the region.
How Wisconsin Public School Funding Works
Wisconsin public schools operate under a state-mandated revenue limit, which caps how much each district can collect through state aid and local property taxes. This limit does not rise automatically with inflation or increased student needs. Public districts also cannot set tuition or charge families to cover mandatory expenses.
This means that districts cannot simply raise taxes when operating costs increase. District funding is tied to a three-year average of enrollment, even as enrollment becomes less predictable. Many district expenses are fixed: buildings, utilities, transportation, and staffing must be maintained whether a district grows or shrinks.
At the same time, public schools must provide certified teachers, state-mandated curriculum and testing, public accountability and reporting, open records and open meetings, and services for all resident students – including those not enrolled in the district.
What Are Vouchers?
Wisconsin’s voucher programs—the Wisconsin Parental Choice Program (WPCP) and the Special Needs Scholarship Program (SNSP)—allow eligible families to have part of their child’s education funded at a participating private religious, home school, charter, or virtual school.
“Families must generally meet income limits set as a percentage of the federal poverty level, and students must fit certain enrollment or grade-level criteria when they first enter the program,” explained Katie Schwartz, Horicon School District Superintendent.
For 2025-26, the statewide voucher payments are:
• $10,877 per K-8 voucher student
• $13,371 per high school voucher student
• $16,049-$24,000 per special-needs scholarship student
These amounts rise annually and are set by the state, not by local districts.
How Vouchers Appear on Local Property Tax Bills
When a resident student uses a voucher, the state requires the resident public school district to levy local taxes to cover the cost of that voucher, even though the student does not attend that public school.
Districts do not keep this money. Instead, the district collects the amount on the local levy. That money is counted as a “revenue limit reduction,” and the funds are shifted to pay tuition at the participating private school.
This required shift appears on tax bills regardless of whether a district’s own enrollment is growing or shrinking.
In the Mayville School District, voucher participation has increased by 33% this school year (2025-26). As a result, more than $1.2 million—about 16% of the district’s school tax levy—is redirected to fund private and parochial education. Other area districts are seeing different versions of the same trend.
The Mayville School District currently has the third-highest revenue limit funding vouchers in the state, with 45% of students in participating private schools utilizing the voucher program and receiving funds. Per the Wisc. Department of Public Instruction (DPI) data, the Mayville School District allocates 9.5% of its revenue limit to WPCP, RPCP, and/or SNSP Deductions.
The Ripple Effects on District Operations
Staffing and Class Size
Public schools must maintain safe and appropriate class sizes and meet teacher licensure requirements, but declining birth rates, open enrollment, and the growth of private, virtual, and homeschool options mean many districts must regularly adjust staffing—sometimes hiring in spring only to resize staff again in fall.
Even as enrollment declines, student needs have increased, especially in intervention and special education services.
Special Education Requirements
Unlike private, virtual, or home-based programs, public schools are legally required to provide complete special education services to any qualifying resident child, even those enrolled in private voucher schools or home-based programs who return to the district for evaluations, speech therapy, or service plans.
These services have grown significantly in cost while state reimbursement has not kept pace. Districts cannot decline service, delay evaluation, or cap enrollment.
Facilities and Daily Operations
Public schools must continue to:
• Maintain buildings and grounds
• Operate transportation routes
• Provide technology, safety upgrades, and security measures
• Offer extracurriculars, arts, athletics, 4K, and summer programming
• Serve as community resources and emergency shelters
These costs do not decrease even when enrollment fluctuates.
Why Planning Has Become More Challenging
District leaders describe today’s environment as a “pressure cooker,” shaped by:
• Variable enrollment due to choice options
• Increasing voucher participation across many communities
• Per-pupil public funding that has not kept up with inflation or student needs
• Decreasing federal aid
• Removal of statewide voucher caps starting in 2025–26, adding new unpredictability
• Falling birth rates, especially in rural counties
Districts must issue teacher contracts months before they know how many local students will enroll, open-enroll elsewhere, or use vouchers. Even small shifts can have large budget impacts.
“We plan months in advance, but enrollment now shifts in real time,” said Sabol.
What School Leaders Want Residents to Know
Superintendents and private school administrators across the region repeatedly emphasize: This is not about taking sides. Both public and private schools play valuable roles in the community. Many families choose private schools for reasons of faith, tradition, or fit, and districts maintain partnerships through athletics, shared services, and community events.
This is about transparency. Most residents do not realize voucher costs appear within the public school portion of the tax bill, or that districts must levy taxes to pay those costs—even when the local district doesn’t serve the child.
Public schools remain committed to serving every child. Districts must provide comprehensive services to all resident students, maintain small class sizes, and keep programs strong, even while adjusting to uncertain funding.
How the Voucher System Affects Our Districts:
Mayville School District Statements
Mayville School District Superintendent Dr. Scott Sabol says the current voucher system adds significant complexity to how the district operates, plans, and allocates resources—especially as student needs continue to rise while enrollment declines across Dodge County.
Over the past decade, the district has worked to be fiscally responsible and responsive to community expectations. The 2017 referendum transformed Mayville’s high school facilities and allowed the district to modernize security, update aging infrastructure, and make needed improvements. However, Dr. Sabol notes that those upgrades occurred nearly ten years ago, and today’s realities look very different.
“We are seeing increasing needs in school safety, security, and technology,” Sabol explained. “Even with the improvements funded through the referendum, our latest assessments show very high needs. It’s important for our community to understand how much has changed in ten years.”
The district has taken steps to operate leanly and responsibly: selling its district office, reorganizing operations, and adjusting staffing to reflect today’s smaller enrollment, but those efficiencies do not reduce the district’s legal obligations. “We’ve reduced staffing to match our enrollment, but our student needs continue to grow—especially in special education and intervention services. The needs of students in 2025 are simply different than they were a decade ago.”
Dr. Sabol emphasizes that public schools are legally required to provide full special education services to all qualifying resident students, even when those students attend private voucher schools, virtual programs, or homeschool settings. “Whether a child attends Mayville schools or not, if they live in this district, we are required to evaluate them, serve them, and meet all federal and state mandates. Private and virtual schools do not carry those same requirements.”
While navigating these responsibilities, the district continues to be a vital part of the community. Mayville Schools offered stability throughout the pandemic, partnered with local child care providers to help address Dodge County’s child care desert, and recently served as a resource during the tornado response this past May. “We are more than a school system—we are part of the heartbeat of this community,” Sabol said.
At the same time, educational choice in Wisconsin has expanded dramatically. Public, private, parochial, virtual, open enrollment, and homeschool options are all growing. “Families have more choices than ever, and we support families making decisions that work for them,” Sabol said. “But it also means we’re now funding a traditional brick-and-mortar experience, trying to innovate with virtual options, and maintaining small class sizes for safety—all while managing declining birth rates and the increasing flexibility of school choice.”
Choice also makes enrollment more fluid, with students moving between districts and educational settings throughout the year. “Our neighboring districts also have strong schools and supportive communities. That’s something to celebrate,” Sabol added. “But it does mean enrollment shifts more than it used to, and those shifts have real effects on staffing, budgeting, and planning.”
All of this is happening as Wisconsin’s overall school funding levels rank in the lower half of states nationwide, and as voucher participation continues to grow. “We have fewer children in Dodge County overall, more educational options, and fewer financial resources to go around,” Sabol said. “That combination makes the environment very competitive.”
Dr. Sabol stresses that the conversation is not about whether families should choose private or public schools. “Families will choose what is best for their children—we support that,” he said. “But the funding system we’re operating under was built decades ago. As more taxpayer-funded options expand, public school districts are required to do more with fewer resources, all while continuing to meet every mandate and provide services to every resident child.”
He hopes continued conversations help the community better understand how vouchers, enrollment shifts, and state funding decisions affect the district. “We’re grateful for our community’s support, and we want to be transparent,” Sabol said. “These are big challenges, and we’re working every day to meet them while keeping the Mayville community at the center of everything we do.”
Lomira School District Statements
“We want to help our community understand what impacts property tax bills — and what does not,” said School District of Lomira Administrator Ty Breitlow.
The vast majority of school funding comes from the state-set revenue limit per student (Revenue-General Aid = Property Taxes).
Lomira’s revenue limit dropped from a $106,000 increase in 2024-25 to a $13,000 increase in 2025-26, which will shift the burden of school funding to taxpayers because there was no increase to general school aid in the 2025 biennium state budget, passed in the summer of 2025.
Wisconsin was ranked 11th in 2002 in per pupil funding, but currently ranks 25th nationally in per-pupil fundin which 7.2% below the national average.
While the school district is often assumed to be the primary driver of property taxes, a significant portion of this year’s increase is due to state-mandated costs outside of local control.
This year alone, $801,527 was added to our tax levy to fund private school vouchers. This is an increase of $227,569 from last year.
This amount represents 26.25% of the district’s general levy with a total of 931 students in the district.
“These funds do not stay in our public schools and do not support district students, staff, or programs,” said Breitlow. “Instead, they are redirected to private voucher schools as required by state law.”
Property value assessments also have a significant impact on our property tax bills.
Per the Wisconsin Education News, “It’s a common misconception that higher property taxes always mean schools are spending more. Individual tax bills depend heavily on local property assessments.”
Shifts in your assessment and/or that of the municipality in which your property is located may not reflect what is happening in the local school district.
“The mix of local assessments, state aid, and the allowable levy determines individual tax bills—not school spending alone,” said Breitlow.
While state decisions are contributing to increasing property taxes for the average taxpayer, a specific taxpayer’s school share of local property taxes may increase, or not, regardless of a school board’s decisions on utilizing the $325 per pupil increase or even passing operating referenda.
“The state with the state voucher system is attempting to fund two school systems (private & public) with the same source of funds,” said Breitlow.
“Any school that receives public funds should be held to the same accountable standards with classes offered, who attends each school, and mandated state reporting and testing standards,” said Breitlow.
“Ultimately, the school portion of your property tax bill is determined by a balance of several factors that are largely outside the control of your local school board,” said Breitlow.
“School spending is only one part of this equation and is not always the primary driver of tax changes,” said Breitlow. “Please keep these factors in mind when reviewing your property tax bill.”
“The school district helps to advocate for our district by hosting its local and state government officials during school visits,” said Breitlow.
“Our district remains committed to fiscal responsibility and transparency while continuing to advocate for sustainable funding that prioritizes public education and the students we serve,” said Breitlow.
Horicon School District Statements
Within the Horicon School District for the 2025-2026 school year, 26 K-8 students, five high school students are participating in the WPCP, totaling $345,306. There are three students participating in the SNSP, totaling $48,147.
This is an increase from the 2020-2021 school year figures of 10 K-8 students, two high school students, and two SNSP students. The district notes that student counts have been as high as 33.5 K-8 students, five high school students, and four SNSP students in the past.
Horicon School District Superintendent Katie Schwartz echoes what other districts want taxpayers to know about these programs. “Horicon taxpayers should know that a portion of our local tax levy goes directly to the state for payments to voucher schools,” she said. “Voucher-funded schools are not subject to all of the same state-mandated measures of student academic performance and outcomes as public schools.”
An additional challenge is the district’s planning is complicated by the annual changes in the WPCP, with the necessary changes to the local tax levy being unknown until October 15 each year, while school tax levies must be board-certified by November 1.
“Regardless of the WPCP program challenges, the School District of Horicon continues to work diligently to provide the highest quality education for each of our students. Our services to students and families in the safest possible environment continues to be our highest priority,” Schwartz stated. “We are proud of the quality education we provide, and continue to work strategically to provide these services in the most fiscally responsible manner possible.”
The district warns that as the voucher program expands and the individual voucher amount increases, the local tax levy will continue to rise accordingly.
Schwartz shared that an increase in enrollment would help increase the amount of state aid received, reducing the local tax levy. “Prioritizing our quality educational and extracurricular programs is of critical importance as we look to the future,” she said. “Districts are consistently working to create sustainable enrollment trends because it creates more consistent and sustainable sources of state revenue, which positively impacts our local budget and tax levy.”
St. Stephen Lutheran School, Horicon Statements
Schools, such as St. Stephen Lutheran School in Horicon, are subject to state-mandated requirements in order to receive public funds, including submitting budget reports to DPI, undergoing audits, maintaining attendance records, and more, as Principal Stacey Seehafer shared.
In addition to these state requirements, St. Stephen pursues accreditation every five years through the National Lutheran School Accreditation (NLSA), which they last received in September 2025.
Per the school’s website, “NLSA is granted to schools who meet the national and church standards, and is a process of self-evaluation followed by a visit of objective observers designed to help Lutheran schools improve the quality of their programs.
“NLSA is a rigorous national accrediting process designed to evaluate schools based on their unique purpose as Lutheran schools. It helps schools evaluate not only the quality of the academics and programs, but also, most importantly, the spiritual dimension of the school.”
This year, there are 10 students attending St. Stephen who participate in the WPCP.
From Seehafer’s perspective, “... It’s (the WPCP) very beneficial because I feel that parents who normally wouldn’t be able to afford to come here, because it is tuition-based, this allows them to be able to come.”
The current tuition cost is $3,100.
The voucher funds only cover part of the total cost to educate a student, explained Seehafer. It is through funds collected from the congregation and fundraising efforts that the remaining amount is covered.
“...Having that money allocated from the state definitely helps relieve the financial burden from our congregation,” said Seehafer.
Expanding on the benefits, St. Stephen has seen growth and a positive impact on their enrollment.
Seehafer continued, the money received from the state also helps to retain high-quality teachers and invest in the curriculum to continue to be on par with public schools.
Seehafer expressed concern that a reduction in voucher money would cause families to lose the option of sending their child to a parochial school. This loss of funding could force many parochial schools to close.
She also addressed the misconception that they “only teach about Jesus,” emphasizing that the school also maintains very high curriculum and academic standards for students in core subjects like math, science, and reading, along with the benefit of smaller class sizes.
Seehafer also wanted to encourage families to consider applying for these programs. “I think some parents maybe shy away thinking they would never qualify. But it’s surprising… if they’d only just try… they might open up an opportunity for the child to come here, so they can get that religious foundation along with top-notch academics and education.”
What Comes Next
As Wisconsin moves toward uncapped vouchers, districts will continue to collaborate with legislators, community leaders, and families. Many districts—including Mayville—have added informational inserts to tax bills and will continue sharing updates online and at public meetings.
Residents are encouraged to stay informed, ask questions, and use district website links to access up-to-date information, graphics, and explanations.