Although Jefferson County’s residential and industrial development uptick has made headlines in recent years, a Wisconsin Policy Forum study published today is telling a different story – one indicating the county’s growth is lagging and affecting local government financing.
In the past two years, Jefferson County has attracted a number of companies to its 175-acre Food and Beverage Innovation Campus, including V&V Supremo Foods, Onego Bio and campus anchor Kikkoman Foods. The county has also attracted Palermo Villa Inc. and Nestle Purina to add or expand manufacturing facilities, and reported record high single-family building permits – up 119% during the second quarter of 2025. Its single-family home building permits had the second-highest percentage increase of the state’s 72 counties during that period.
Wisconsin Policy Forum’s study, however, found that less-than-ideal rates of new construction in Jefferson County are negatively impacting tax revenues for county and municipal government operations. A lack of new residential, commercial and industrial development since the Great Recession (2007-2009) has limited revenue growth for local government, the study said, while costs of operation have inflated.
The goal of the study was to perform objective, nonpartisan research that could shed light on how housing development impacts municipalities, schools and public services under Wisconsin’s current system of local government finance.
Since 2011, Jefferson County’s rate of net new construction – a percentage increase of property values from new structures in the area – has fallen behind both the state average and inflation. Jefferson County reported a 0.7% increase in net new construction in 2025, whereas the state reported 1.7%. That’s down from Jefferson County’s reported 3.1% increase in 2005, predating the Great Recession.
Combined with slower population growth, which has been less than 1% since 2020 with an anticipated decline on the horizon, the county’s idle development is raising concerns for local government funding.
Deb Reinbold
Municipalities that can grow with new development and a growing property tax base are generally better positioned to maintain services, support schools, attract employers and remain financially sustainable over the long term. Standing still has consequences, said Deb Reinbold, executive director of Thrive Economic Development, a partnering organization in conducting the study.
Wisconsin tax levy limits restrict how much local governments can raise property taxes each year based on new development in their area. Under state law, the costs of providing services grows over time, while revenue from existing properties does not, the study says.
Results of the study also called attention to a 14.6% decline in school enrollment countywide, which was nearly double the state average from 2015-2025. This decline has gradually reduced how much money Jefferson County’s school districts can collect under state revenue limits.
Thrive Economic Development recognized a shared sentiment among its communities surrounding questions around housing, local finances and long-term sustainability.
“Every community will decide what growth looks like for them,” Reinbold said. “This report provides a clearer understanding of the opportunities, challenges and tradeoffs communities are navigating under Wisconsin’s current funding system.”
Reinbold also said the county is well-positioned for future growth because of its location, workforce, strong manufacturing base and quality-of-life assets.
