The debate about how to change the way Wisconsin funds its public schools is on

There are a number of proposals being discussed, each one having both pros and cons. In order to prepare members for what will surely be a spirited discourse over the issue, we offer a short primer on the major plans that are the most likely to be considered.

Equalization Plans
Equalization plans are an attempt to provide fiscal equity. In theory, districts that spend the same amount per pupil will tax at the same rate, regardless of their property value per pupil. Local property taxes depend on what share of school costs are paid by the state. This method encourages local ownership and support of schools. If structured appropriately, it can encourage local districts to spend resources to achieve specific goals. However, equalization plans may allow districts to spend at less than what may be an adequate level. These plans may not adequately deal with "high-cost" students. Equalization systems tend to be less uniform and require a more local focus.

Foundation Plans
Foundation plans try to ensure program adequacy and district spending to provide the opportunity for a sound, basic education. The state sets a foundation level, which is the required level of spending and sets the required local tax levy. It then provides aid to those districts that are unable to reach the foundation level locally. Some plans allow districts to spend above the foundation level; some forbid it. In theory, this method ensures that each district spends sufficient funds to achieve a desired level of educational outcomes. However, it reduces local control over spending and education decision-making. State officials may let the foundation fall below an adequate level, thus increasing district reliance on local property taxes. Foundation systems tend to produce a more uniform system and require more of a state focus.

Wisconsin's Plan
Wisconsin's current system is a complex equalization plan with significant limitations on local decision-making. Wisconsin's equalization aid formula calculates a district's aid based on three factors: costs, property value and membership (enrollment). Categorical aid is designed to deal with high-cost, atypical students or situations. It typically reimburses a flat percentage of eligible costs. Most significant categorical aids are special education, limited English proficiency, the SAGE program and transportation aid. Costs for services that are not reimbursed by categorical aids are eligible for aid under the equalization formula.