Budget to deliver on NOSD referendum pledge

The Northern Ozaukee School District’s budget this school year is a mix of contrasts and consistencies.

The district’s tax levy is slated to increase by about $140,000, or 1.9%, to $7.439 million.

“This continually aligns with our district’s messaging during the operational referendum in 2024 — ‘the School Board plans to keep the school portion of the tax bills the same over the next four years,’” Director of Business Services Josh McDaniel said. “This is something the board is proud to be able to uphold.”

The district’s tax rate is expected to fall by 35 cents to $6.35 per $1,000 of equalized value. If that holds, the owner of a $350,000 home would pay $2,222 in school taxes.

That would be the lowest tax rate in at least five years. The rate was $9.41 in 2022, $8.35 in 2023, $7.96 in 2024 and $6.79 last year, although lower tax rates don’t necessarily mean lower tax bills since property appreciates in value over time.

State aid is also expected to decrease by $600,000, or 15%, from $4.38 million to $3.78 million, McDaniel said, but he knew it was coming.

“This decrease was anticipated in the current year based on how the Northern Ozaukee School District falls in the state’s calculation for allocating this aid. 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,” he said.

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.

“This is a long-term benefit to the residents in our school district as, over multiple years, Northern Ozaukee will receive more equalization aid by processing these transactions in the same year,” McDaniel said.

Another positive is open enrollment, the state program that allows students living in one district to attend another. The bulk of the state aid money follows that student to the outside district.

“Northern Ozaukee was historically a net open enrollment-out school district, meaning more students open enrolled out of the district than into the district. This year’s headcount is the first year that marks Northern Ozaukee reversing that trend and having a net gain of nine students choosing to enroll into Northern Ozaukee vs. enrolling out of the district,” McDaniel said.

“We have many positive things going on at Northern Ozaukee, and the fact that more families continue to choose Northern Ozaukee supports that.”

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

The district’s annual budget hearing and annual meeting is at 6 p.m. Monday, Oct. 19, in the high school library.