Budget Development and Planning - Revenue Limit

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Understanding and Explaining the Revenue Limit

Want to understand how the Revenue Limit has affected your district over time? Ever have the need to explain it to someone new to Wisconsin public school finance?

This Excel spreadsheet displays individual lines and values from the Revenue Limit computation for each public school district for the past 8 years. Changes in the 3-year averages, per-pupil increases, exemptions, and other factors can explain shifts in district Revenue Limit resources from year to year. Use this spreadsheet to review key factors in your district's Revenue Limit computation. Also provided are Excel graphs of select data elements.

Please call a finance consultant if you have questions.

Multi-Year Revenue Limit Survey

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Sources of New-Year Revenue Limit Authority

The Revenue Limit computation contains a yearly inflationary increase which, for most districts, means an increase in district resources (aid plus controlled levies) from year to year under the Limit. However, if a district is experiencing declining enrollment, gains from an inflationary increase can be offset by losses due to a membership decline. In fact, if the membership decline is severe enough, ALL monetary benefit - plus more - can be wiped out! (A new “hold harmless” provision in the 07-09 State Budget now provides a parachute to severely-declining districts by limiting the loss from a membership decline to what the inflationary benefit would have been.)

Each district’s revenue change from year to year is uniquely comprised of a mix of benefit/loss from: 1.) the inflationary index; 2.) membership changes; 3.) “low revenue” increases; and 4.) the “parachute” legislation. Use the following spreadsheet to view the sources of your district’s 07-08 Revenue Limit change.

Please contact a School Finance Consultant if you have questions.

07-08 Revenue Limit Authority Sources

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Longitudinal Revenue Limit Per Member

Districts may find it informative to analyze their Maximum Revenue Limit Per Member across time. The Revenue Limit Per Member is computed by dividing a district’s Maximum Revenue Limit (Line 11 of the computation) by its Current 3-Year Membership FTE Average (Line 6 of the computation) for the year of interest.

In any given year, the Maximum Revenue Limit for a district indicates the maximum amount a district can receive through the combination of general state aid (Equalization, Special Adjustment, and Integration Aids), the levies for Funds 10 (Operating), 38 (Non-Referendum Debt), and 41 (Capital Projects), and Computer Aid. Changes in Line 11 across time can indicate changes in the level of district resources available for educational programs. Users of this data are encouraged to investigate the reasons behind changes in this statistic.

The Maximum Revenue Limit amount is comprised of different types of authority. First, a district receives levying authority from its pupil membership. Then, additional authority from the yearly inflationary increase is added. Further, depending on what is happening in the district, additional authority can come from, among others, recurring referenda, transfer of service, non-recurring referenda, and declining enrollment. All of the levying authority entitled to the district is summed and displayed on Line 11 of a district’s revenue limit worksheet in any given year. District BOEs use their discretion in setting their levies, but most utilize the total authority available on their Line 11.

The following file contains a district by district display of the Current 3-Year Average Membership (Line 6), Maximum Revenue Limit (Line 11), and the Revenue Limit Per Member for each year since the inception of Revenue Limits in 1993-94. Data was taken from the final Revenue Limit files at the Department of Public Instruction.

Please call a School Finance Consultant if you have further questions.

Revenue Limit Per Member Longitudinal Survey

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08-09 Revenue Limit Executable Worksheets

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For questions about this information, contact dpifin@dpi.wi.gov (608) 267-9114

Last updated on 8/25/2008 9:55:02 AM