Northern Ozaukee tax rate is lowest in years

Northern Ozaukee School District residents will be paying a lower school tax rate this year.

Electors on Monday approved the 2026-27 general fund levy of $6.589 million with the total levy coming to $7.488 million, an increase of $190,000, or 2.61%, from last year.

This year’s budget includes a tax rate of $6.38 per $1,000 of equalized value, meaning the owner of a $350,000 home will pay $2,233. The rate is 41 cents less than last year and the lowest since at least 2022.

State aid decreased by $600,000, or 15%, from $4.38 million to $3.78 million, Director of Business Services Josh McDaniel said.

“Northern Ozaukee is a negatively aided district, based on property value per student member, so the more our district has in expenditures, the less aid we receive,” McDaniel said.

The decrease in state aid was planned for. Since the School Board approved five large capital projects last year and the district processed early debt payments in May, it is allowed to use the state’s hold harmless exemption that caps the decrease in state aid to 15% in one year to prevent drastic decreases in state aid.

One of the differences between the district’s projections and the final budget was the impact of the state’s voucher program, which uses state education money to send qualifying students to private schools.

“Private school voucher payments came back a little higher than expected, so the overall levy had to increase by about $50,000 to cover these additional costs that flow through the district and aid payment,” McDaniel said.

The district paid $393,000 in voucher payments last year. This year, that number increased to $442,000.

In addition, the district’s busing and transportation contract carries a fuel surcharge. With diesel rates at $6.50 per gallon, McDaniel said the surcharge is nearly $30,000.

“The first month’s bill was less than $6 a gallon by our contractor, so I would anticipate the $29,500 would be a conservative estimate for the cost to the district,” McDaniel said.

Enrollment has remained “relatively consistent,” McDaniel said, with 719 students in 2024, 717 in 2025 and 714 this year.

The district has a net gain of nine students through the state’s open enrollment program that allows students in one district to attend another. Northern Ozaukee used to typically lose students through the program.

“Overall, the board was pleased with the budget brought forward and the current financial state of the district,” McDaniel said.