Please Note: This webpage is a work in progress. We are actively adding and editing content daily through the end of March. Thank you for your patience.
Welcome to the Budget & Finance Page
Managing school finances is a complex and ever-evolving process, and we are committed to providing transparency in how we allocate resources to best serve our students, staff, and community. This page is designed to offer clarity in the intricate world of school finance, ensuring that you have access to the information needed to understand how public funds support education in Osceola.
If you notice any typos or have ideas for content that might be beneficial here, please reach out. We want to work with you to make this page as informative and useful as possible. Thank you for your interest in the fiscal stewardship of Osceola School District.
Here’s why this page matters:
- Transparency and Accountability: We believe our community deserves to see exactly how public funds are used. From local property taxes to state and federal contributions, we break down the numbers so you can witness the care and dedication behind every line item.
- Understanding Complexity: School finance isn’t like running a typical business. With biennial state-mandated budgets, variable student enrollments, and diverse funding sources, our process is a carefully choreographed dance. We share the background and context needed to fully grasp this complexity, turning intricate figures into a clear narrative.
- Empowering Our Community: By shedding light on the budgeting process, we empower you with the knowledge to participate in meaningful conversations about our schools’ future. This isn’t just about numbers—it’s about inspiring, empowering, and making a lasting impact together.
- Building Trust: Our page is a testament to our commitment to transparency. It’s designed to build trust by revealing how we manage resources in line with our mission and the unique needs of Osceola.
If you're relatively new to school finance, this video is a great place to start. Thank you for your interest and for taking the time to engage with this important topic!
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The Wisconsin Uniform Financial Accounting Requirements (WUFAR) are implemented in every school District.
Financial administration requires that each transaction be identified for administrative and accounting purposes. The first identification is by "fund" which is an independent fiscal and accounting entity--requiring its own set of books--in accordance with special regulations, restrictions and limitations that earmark each fund for a specific activity or for attaining certain objectives. Each fund must be so accounted for that the identity of its resources and obligations and its revenues and expenditures is continually maintained.
A fund is an accounting entity consisting of a self-balancing set of asset, liability and equity accounts used to account for the district's financial transactions in accordance with laws, regulations or restrictions. DPI requires reporting of various revenues and expenditures within specified funds.
Instructional Funds (Funds 10, 21, 23, 27, 29, 91, 93 and 99)
Instructional funds are funds where elementary and secondary instruction (i.e. K - 12) activities (100 000 function series), pupil support activities (210 000 function series) or instructional staff support (220 000 function series) are recorded.
Debt Service Funds (Funds 38 and 39)
These funds are used for recording transactions related to repayment of the following general obligation debt: promissory notes (issued per statute 67.12(12)), bonds, state trust fund loans and TEACH loans. Also, included in these funds are transactions pertaining to land contract payments and refinancing of debt issues and other district obligations as specified by DPI.
🔗Transfer of Fund 39 Accumulated Balance
These funds are used to account for the acquisition or construction of capital facilities financed through the use of bonds, promissory notes issued per statute 67.12(12), state trust fund loans, land contracts, an expansion fund tax levy established per statute 120.10(10m) or projects funded with a TIF capital improvement levy (Kenosha School District only).
Food and Community Service Funds (Funds 50 and 80)
These funds are used to account and report transactions of the district's food and community service activities. No K-12 instructional (100 000 series) or instructional support related functions are recorded in these funds.
Trust Funds (Funds 72, 73 and 76)
These funds are used to account for assets held by the district in a trustee capacity for individuals, private organizations, other governments and/or other funds pursuant to GASB 84. The Employee Benefit Trust Fund provides relevant information concerning the establishment of an employee benefit trust and the accounting associated with the trust. Please refer to GASB 84, the implementation guide and the Wisconsin Uniform Financial Accounting Requirements (WUFAR) webpage for additional resources related to Custodial Funds.
A more detailed description for each fund can be found in WUFAR chapter 5.
District budget calendar
While school budgeting involves planning a dollar amount much like a business, there are several key reasons why it differs significantly:
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Biennial Budget Cycle:
In Wisconsin, school budgets are set on a two-year cycle. Unlike businesses that often plan for 5 or 10 years, school districts must adapt every two years due to state mandates and changing conditions.
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Funding Tied to Enrollment:
School revenues are largely based on pupil enrollment. However, when enrollment decreases, many operating costs (such as staffing and facilities) remain fixed, making it difficult to quickly adjust spending.
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Changing Requirements and Policies:
New mandates and evolving state policies can alter funding formulas and program requirements. Past promises or funding levels may no longer apply in subsequent bienniums, limiting long-term planning.
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Fixed Operating Costs:
Much of a school district’s expenditures, like building maintenance and salaried positions, are fixed costs. This rigidity contrasts with businesses that can often scale expenses more flexibly with revenue changes.
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Forecasting Constraints:
Even though we use the Baird Model to forecast future needs, the short-term nature of state-set budgets means our forecasts must be adaptable. The limited planning window prevents the long-range certainty typical in business budgeting.
These factors together underscore why, despite similarities in planning processes, school budgeting in Wisconsin is inherently more constrained and variable than business budgeting.
In Wisconsin, school districts may incur debt to fund facility improvements, capital projects, or other necessary investments that support student learning and community needs. Debt is typically approved through voter-approved referendums or non-referendum borrowing within state-imposed limits.
School districts are required to manage debt responsibly, ensuring that borrowing aligns with long-term financial planning and does not exceed statutory debt limits. Debt service payments are funded separately from general operating expenses and are not part of the district's annual budget for staffing, programs, or day-to-day operations.
🔗Linked are the long-term debt issues on record at DPI for the district.
Student Enrollment Information: The Wisconsin Department of Instruction (DPI) uses school district enrollments in the calculations for both Revenue Limit and Equalization Aid. Official student headcounts are taken twice per school year: on the third Friday in September and on the second Friday in January. Student headcounts are converted to Full Time Equivalents (FTEs) based on various factors, including the type of student being counted, the grade level, and the percentage of time the student attends school on an average day. Summer school counts are a mathematical calculation based on the number of total minutes of summer school courses attended divided by the overall summer student headcount, and then converted to FTE.
Open Enrollment: Membership FTE for students who enroll IN and OUT of the district are applied to the Revenue Limit calculation based on their resident district and are added to/subtracted from equalization aid payments to districts based on the attending district. Generally speaking, a district counts their resident student FTE on the revenue limit calculation but receives (or pays out) tuition aid payments based on where students are actually attending.
Below, you’ll find slides that provide a brief overview of enrollment trends in the State and in Osceola. Accompanying these slides is a 10-minute video in which Superintendent Becky Styles walks through the key points.
These materials offer a high-level summary, so if you have any questions or need further details, please don’t hesitate to reach out.
🔗Slides about enrollment
🔗Video of the slides
🔗Over time Enrollment - 1998 to present
Below is a list of Seven common Fund 10 expenditures for Wisconsin school districts, along with a brief definition for each:
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Instructional Salaries and Benefits:
Expenses for teacher salaries, benefits, and other personnel directly involved in classroom instruction.
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Non-Instructional Personnel Costs:
Payments for administrative staff, support personnel, and other employees not directly involved in classroom teaching.
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Instructional Materials and Supplies:
Costs for textbooks, classroom supplies, and other materials used to support the learning process.
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Operational and Maintenance Expenses:
Funds used for facility upkeep, utilities, janitorial services, and routine maintenance of school buildings.
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Student Transportation:
Expenditures related to operating school bus services, including fuel, maintenance, and driver salaries.
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Technology and Equipment:
Investments in computers, software, educational technology, and maintenance of related equipment.
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Professional Development and Training:
Funds allocated for staff training, workshops, and other opportunities for professional growth and development.
Here is a link to the "recent" history of the buildings in the District.
We take great pride in our buildings and grounds, and our maintenance team is always committed to going above and beyond to keep our schools looking their best. Their dedication ensures that our students and staff have a safe and welcoming learning environment every day.
However, due to outdated state funding formulas and declining enrollment, we haven’t been able to maintain our facilities in all the ways we would like—or as we have in the past. Despite these challenges, we make the most of our resources, prioritizing safety and functionality to support student learning.
Fund Terminology
A fund will have "balance sheet" accounts consisting of "assets," "liabilities," and "fund balance" and a series of "revenue" and "expenditure" accounts. A "fund balance" is created or increased when fund revenues exceed fund expenditures for a fiscal period. Correspondingly, a fund's balance is decreased when fund expenditures exceed fund revenues. The balance sheet accounts identify the assets that belong to a fund--such as cash or a grant payment receivable--and what liabilities it owes, such as accounts payable to a supplier.
The difference between the fund's assets and liabilities equals the "fund balance." A positive fund balance represents a financial resource available to finance expenditures of the following fiscal period. A deficit fund balance can only be recovered by having revenues exceed expenditures in the following fiscal period.
Understanding the Fund Balance
People need to understand what a fund balance is and its importance in budgeting decisions. A common misconception is that the fund balance is a cash account and, therefore, corresponds to the district's bank balance. As discussed above, the fund balance represents the fund's total assets minus its liabilities (what a fund owns minus what it owes). Cash is an asset, but it is usually not a fund's only asset. The fund may also have liabilities, such as an accounts payable amount due to a supplier, that could result in a decrease in fund cash when they are paid off.
🔗Department of Instruction fund balance explanation
In Wisconsin, homeschooling is a parent-directed educational option where families must file a PI-1206 form with the Department of Public Instruction (DPI) and provide at least 875 hours of instruction annually. Homeschooled students in Osceola have access to some district opportunities, such as extracurricular activities and specific courses, based on availability and district policies. However, the district does not receive state funding or reimbursement for homeschooled students who participate in these offerings.
A comparison of enrollment in the home-based private educational programs and public and private school enrollment is available in a multi-year listing for the years 1984-85 to 2022-23:
🔗Home-based Enrollment Trends
Overview
School district property taxes include levies for general operations, debt service, capital expansion and community services. Property values are equalized to reflect market value rather than local assessed value. The equalized levy rate is the total property tax levy divided by the current year equalized property value with tax incremental financing (TIF) values excluded. Levy rates are shown in "mills" or property tax dollars levied per $1,000 of equalized property value.
Each year, per Wis. Stats. 120.12 (3)(a), prior to November 1, each school board must vote a levy necessary to operate and maintain the schools of the school district. In addition, on or before November 10 the district clerk must deliver to the clerk of each municipality a statement showing the proportion of tax to be collected from the property in the school district lying within that municipality (s.120.17(8)(a) Wis. Stats).
Wisconsin School District Equalized Levy Rates
What is Open Enrollment?
The inter-district public school open enrollment program allows parents to apply for their children to attend public school in a school district other than the one in which they reside.
Who can apply?
Any Wisconsin resident in 4K to grade 12 may apply to attend a nonresident school district under the open enrollment program. However, a child may transfer to a nonresident school district for early childhood education or 4K only if the child’s resident school district offers the same type of program and only if the child is eligible for that program in the resident school district.
🔗Open Enrollment Funding
Like approximately 75% of school districts across Wisconsin, Osceola continues to face challenges due to an outdated and inadequate state funding model, numerous unfunded mandates, and declining enrollment. In light of these challenges, we remain committed to making thoughtful decisions that put our students, staff, and community first.
After careful consideration, the School Board has decided not to move forward with an operational or capital referendum at this time. Instead, additional reductions will be made this spring, building on last year’s $1.3 million in reductions. A summary of the reductions from last year is below.
In Wisconsin, school districts hold referenda to obtain public approval for funding beyond state-imposed limits. There are two primary types:
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Operating (Revenue) Referendum:
Used when a district needs to exceed the statutory revenue limit on its local property tax levy to fund day-to-day operating expenses, such as salaries, classroom materials, and other ongoing costs.
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Capital (Bond) Referendum:
Used to secure voter approval for issuing bonds to finance long-term capital projects, including new construction, renovations, and major facility improvements.
These referenda ensure that any increases in local taxation or borrowing for capital projects are directly authorized by the community.
🔗Referendums over time in Osceola
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Local Property Taxes:
Funding derived from property owners based on local property values.
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State Aid:
Formula-based funding from the state that considers factors like enrollment and local wealth.
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Federal Funding:
Grants and programs such as Title I and IDEA that support targeted educational initiatives.
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Local Revenue Enhancements:
Additional funds raised through local levies, special initiatives, donations, and fees.
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Other Income:
Supplemental revenue from sources like interest earnings, rental income, and asset sales.
School Vouchers
In Wisconsin, the school voucher program allows eligible families to use public funding to send their children to participating private schools, including religious schools, rather than attending their local public schools. These programs are intended to provide families with greater educational choice, particularly for those who might otherwise be unable to afford private school tuition.
Key Features of Wisconsin’s School Voucher Program:
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Types of Voucher Programs:
Wisconsin operates several voucher programs, including:
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The Milwaukee Parental Choice Program (MPCP): For students residing in Milwaukee.
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The Racine Parental Choice Program (RPCP): For students in Racine.
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The Wisconsin Parental Choice Program (WPCP): For students outside of Milwaukee and Racine.
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The Special Needs Scholarship Program (SNSP): For students with disabilities.
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Eligibility Requirements:
Eligibility varies by program but generally depends on:
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Income Level: Family income must fall below a certain threshold, often tied to federal poverty guidelines.
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Residency: Students must reside in specific areas for certain programs.
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Grade Level: Some programs have specific requirements for the grade levels they serve.
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Funding:
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Voucher amounts are determined by the state and cover part or all of the private school tuition.
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The funds come from state aid, and when a student uses a voucher, the amount is deducted from the state funding allocated to the public school district where the student resides.
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Participation by Schools:
Private schools must meet specific requirements to participate, such as accreditation, testing students, and non-discrimination policies.
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Controversy and Debate:
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Supporters argue that vouchers increase school choice, provide opportunities for low-income families, and foster competition to improve education quality.
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Critics argue that vouchers divert funds from public schools, reduce accountability, and may violate the separation of church and state when used for religious schools.
Understanding Special Education: A Shared Responsibility
At the heart of public education is a commitment to ensuring that every child receives the support they need to learn and thrive. Special education plays a critical role in fulfilling this promise, providing individualized services to students with disabilities, so they can reach their full potential.
It is important for our entire community to understand what special education is, how students are identified, and why it is both a legal and moral obligation for public school districts. Special education services are not optional—they are federally and state-mandated rights designed to ensure equity in education for all students.
However, the reality is that special education funding falls significantly short of what is needed, placing a substantial financial strain on the Osceola School District and, in turn, on local taxpayers. While we are committed to providing high levels of support for our students, the lack of adequate funding means that resources must often be reallocated from other critical areas, affecting all students and staff.
We invite you to take a moment to review this Special Education Overview to gain a deeper understanding of this essential service. Awareness and advocacy are key to ensuring that every student, regardless of ability, receives the education they deserve.
Thank you for your care, compassion, and support in building a school community that values every learner.
Historical Overview of School Taxes in Wisconsin
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Early Implementation:
In the mid-19th century, Wisconsin communities established local property taxes as the primary method for funding public schools. This system provided a direct source of revenue to build and maintain school facilities.
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State Aid Integration and Revenue Limit:
As disparities in local wealth became apparent, the state introduced formula-based aid programs to supplement local taxes and promote more equitable educational financing. In 1993, a revenue limit was established, capping the rate at which local school districts could increase their tax revenue. This limit was paired with provisions that promised state funding to cover up to 2/3 of any revenue shortfall and included automatic inflation increases.
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Policy Changes:
These measures, designed to ensure stable funding for public education despite local revenue constraints, were later modified. The automatic inflation adjustments were removed in 2003, and the promise of covering 2/3 of the revenue shortfall was eliminated in 2009.
Definitions
Fair Market Value is calculated by dividing the properties total assessed valued by the average assessment ratio. This ratio is applied to all property, including personal property, regardless of type or location of the property.
School Mill Rate - The mill rate is the total amount of the tax apportionment (levy) divided by the total local equalized value for that taxing jurisdiction. This rate is expressed in mills per dollar of value or the amount per $1,000 of the equalized value of the property.
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