Vernon County Board of Supervisors faces hard choices in the proposed 2026 budget

VERNON COUNTY, Wis. (AP) — The Vernon County Board of Supervisors passed a draft budget last month that is projected to see the property tax rate per $1,000 of valuation remain about steady, or perhaps drop slightly, in 2026. However, this stability masks a period of intense fiscal strain, as county supervisors faced down difficult budget choices prompted by strict state levy limits and escalating service demands.

The anticipated decrease in the mill rate is largely attributed to a significant 11% surge in the county’s equalized property value over the last year. This growth helps distribute the tax burden across a broader base, keeping the rate low even as the total tax levy rises to $12.7 million, driven by statutory increases and debt payments.

Administrative Coordinator Cassandra Hanan noted that the county’s maximum allowable levy increase for 2026 was constrained to just $171,425, an amount far below the rising costs of necessary services.

These constraints forced the County Finance Committee to make some hard choices that will impact a number of areas, unless the board decides to amend the proposed budget at the Nov. 20 meeting.

You can find a copy of the 2026 draft budget here.

Targeted Cuts Offset Rising Expenses

To bridge the gap between rising expenditures and limited revenue growth, the draft 2026 budget necessitated extensive cuts, focusing on utilization of non-lapsing funds, position adjustments, and discretionary programs. These reductions were critical as the Human Services budget alone is projected to increase by about $500,000 due to an uptick in out-of-home placements, including an out-of-state placement costing $1,600 a day, along with increasing state mental health facilities and meal costs. Software subscriptions and services also saw an increase of over $100,000.

Among the most visible reductions in the proposed budget were significant cuts to discretionary programs:

• Scenic Mississippi Regional Transit (SMRT) Bus: The county eliminated its $15,000 contribution to the SMRT bus program. This decision followed information that La Crosse County was withdrawing support due to low ridership and budget pressures, creating a projected regional shortfall of $175,000 for the service in 2026. La Crosse County has since restored their funding for the SMRT bus and that could force Vernon County to restore their contribution. You can read our detailed story about that issue here.
• Historical and Agricultural Societies: Support for the Historical Society was reduced from $50,000 to $37,500 (a 25% cut), and the Agricultural Society saw its contribution fall from $5,000 to $3,750 (a 25% cut).
• Personnel Savings: The draft budget includes eliminating several positions expected to save approximately $140,000. This included transitioning an administrative assistant from full-time to part-time, not rehiring interns, leaving a Grants assistant position vacant, and ending a contract with UW Extension for the Community Development Educator.

Finance Committee Grapples with Tough Choices

The reductions were the culmination of difficult discussions held by the Finance Committee and department heads over two rounds of budget meetings.

The proposed cuts drew public comment, particularly from the Vernon County Historical Society. Dian Krause, the society’s board chair, appealed directly to the Finance Committee, noting that the county’s contribution was vital for paying the salaries of their two part-time employees.

However, the committee also found creative solutions to protect essential services. During discussions on the use of non-lapsing funds, the committee unanimously approved pulling nearly $100,000 off the general levy to fund a community policing officer dedicated to opioid prevention efforts.

Facing continuing financial uncertainty, the committee decided to hold off on allocating 2026 Ho-Chunk Nation project funds until the final budget picture was clearer. This pause provides a necessary buffer, allowing the county access to over $400,000 in unallocated Ho-Chunk funds, which could potentially fill budget gaps if needed.

Supervisor Wayde Lawler recognized the difficulty of the situation, stating that county services shouldn’t have to “scrape and scrimp year after year after year” in a wealthy country.

Capital Projects and Debt Structure

Starting last year the county began a strategy of borrowing for capital projects and equipment in an attempt to get more breathing room in their operating budget. Operating expenses and capital costs are levied separately and the levy caps only apply to operating costs.

The 2026 proposed budget includes $4.7 million in capital projects, focusing heavily on infrastructure and equipment needs.

Decisions on capital borrowing were a major point of discussion, especially given the impact of existing debt. Key approved capital expenditures moving forward included $3 million for Highway Road Projects, $695,123 for Highway equipment, $288,140 for four Sheriff squad cars, and $92,000 for a Vernon Manor van. The total approved capital outlay settled at approximately $4.7 million, below a previous projection that suggested annual borrowing around $5 million.

The budget reflects the first principal and interest payment due on a previous $5.5 million bond issued in 2025. Because property values increased substantially (11%), the individual tax impact of this new debt payment is relatively small, adding only about $12 to the bill for the owner of a $300,000 home.

The committee prioritized exploring less traditional financing methods for large facility needs. A proposed $1.3 million courthouse HVAC upgrade, for instance, was tabled until the county could receive a free energy assessment from a company that guarantees energy and operational savings will cover the costs of the loan, aiming for a “no cost project” funded entirely by future energy efficiency savings rather than taxpayer dollars.

The county plans to explore the most advantageous borrowing strategy for the 2026 capital needs in the coming months, considering both local borrowing and bonding.

Impact To Tax Bill On A $300,000 Property

The two scenarios below vividly demonstrate the complex nature of local government financing: while the county’s overall tax rate may decrease, an individual homeowner’s tax bill can still increase if their property’s assessed value rises significantly.

The mill rate, defined as the tax per $1,000 of property value, is projected to drop slightly for the 2026 budget year, decreasing from $3.55 to $3.34 per $1,000 of value. This drop is driven by the fact that the county’s Equalized Value grew substantially by 11% over the last year, which distributes the tax burden across a broader base.

Here is a comparison of the county tax bill for a $300,000 property under two different scenarios for the 2026 budget year:

Why All Variables Must Be Considered

It is crucial to look at the big picture and all the variables—the total levy, the mill rate, and the individual assessment—to understand the real financial context.

1. The Total Levy is Increasing: Despite the mill rate decreasing, the total amount of property tax money the county plans to collect (the levy) is increasing by 5.22% for 2026, totaling $12,723,380. This increase is necessary due to limited allowable levy growth (capped at $171,425) and the obligation to make the first principal and interest payments on the $5.5 million bond issued in 2025.
2. The Mill Rate Drop is Relative: The mill rate only drops because the percentage increase in the overall county’s equalized value (11%) significantly outpaced the percentage increase in the total amount of money the county needs to collect.
3. Individual Assessment is Key: As seen in Scenario 2, if a homeowner’s property is reassessed higher (in this case, matching the 11% county-wide valuation growth), the larger base value upon which the lower rate ($3.34/$1,000) is applied results in a higher tax bill.