2022-23 Equalization Aid Computations for Howard-Suamico School District

I have taken the time to unpack the Equalization Aid formula. All of this data is available on the WI DPI website, but it is not easy reading! These figures are subject to slight adjustments.

Reference: https://dpi.wi.gov/sfs/aid/general/equalization/formula

Equalization Aid Computations

2022-23 Total for HSSD: $40,747,004

Tier 1 Aid

HSSD Variables to be used throughout:

1. 2021-22 Aid Membership (Pupils): 5,710

2. 2021-22 Total Shared Cost from the Budget Report: $66,907,298

3. 2021 TIF-Out (Property Value): $3,539,125,241

HSSD Computed Values to be used throughout:

1. Shared Cost per Pupil: $66,907,298 divided by 5,710 = $11,718

2. Equalized Value per Pupil: $3,539,125,241 divided by 5,710 = $619,812

Tier 1 HSSD’s per-member value is $619,812 and the state per-member primary guarantee is $1,930,000. HSSD’s value is 32.11% ($619,812 divided by $1,930,000) of $1,000 per-member cost, or $321.15. The state aid for HSSD at the primary level would be the difference between $1,000 and $320, or $678.85 per member: $678.85 x 5,710.

Total: $3,876,255.20

Tier 2 Aid

Tier 2 HSSD’s per-member value is $619,812 and the state per-member secondary guarantee is $1,722,650. HSSD’s value is 35.98% ($619,812 divided by $1,722,650) of $9,832 per-member cost ($10,832 minus the $1,000 already used in the primary tier), or $3,537.57. For this district, its tax base would be required to fund 35.98% of the secondary cost. The secondary cost ceiling is $10,832, therefore the secondary cost at this tier is $9,832 ($10,832 minus the $1,000 already used in the primary tier). HSSD’s tax base is required to fund 35.98% of the $9,832 of per-member cost, or $3,537.57. The state aid for HSSD at the secondary level is the difference between $9,832 and $3,690, or $6,294.43 per member: $6,294.43 x 5,710.

Total: $35,941,206.42

Tier 3 Aid

Tier 3 HSSD’s per-member value is $619,812 and the state per-member tertiary guarantee is $754,832. HSSD’s value is 82.11% ($619,812 divided by $754,832) of the state tertiary guarantee. For HSSD, its tax base would be required to fund 82.11% of the tertiary cost. With the secondary cost ceiling at $10,832, the amount of tertiary cost would be in excess of $10,832 up to the share pupil cost ($11,718), or $886. HSSD’s tax base would be required to fund 82.11% of $886, or $727.17. The state aid for HSSD at the tertiary level would be the difference between $886 and $727.17, or $158.40 per member: $158.40 x 5,710.

Total: $904,446.82

Note: there was a $25,097 aid adjustment from the prior year which is reflected in the total at the top.

Equalization Aid per Pupil: $7,136,08
Total Cost Sharing (Equal Aid) Percent: 60.90%