Article Summary –
Wisconsin school districts are increasingly dependent on referendums to manage their operational and capital expenses due to stagnant state funding, unadjusted revenue limits since 2009, rising costs, and expiring federal COVID-19 funds. The funding crisis affects both large and small districts, compelling many to seek voter approval for tax increases or debt issuance to cover basic expenses like staffing and maintenance. This reliance on local taxpayer support has highlighted disparities between wealthier and less affluent districts, contributing to concerns that the current funding model is unsustainable and could deteriorate the quality of education if not reformed.
Facing a school funding crisis, Wisconsin school districts depend on voters to maintain operations. This fall, at least 120 districts are holding referendums to increase property taxes or issue bonds to fund schools.
Lagging state funding, determined by a Republican-controlled Legislature, has sparked this trend. Wisconsin law caps funding through local taxes, loans, and state funds. Since 2009, these limits haven’t kept pace with inflation. Declining enrollment and expiring federal COVID-19 funds add to the financial strain.
School referendums allow districts to exceed revenue limits through increased taxes or debt. Operational referendums cover daily expenses, while capital referendums fund construction projects. These can be temporary or indefinite solutions.
Due to stagnant state funding, more schools are turning to referendums for essential expenses like staffing and utilities. In April, 86 districts held referendums.
“State decisions have shifted the burden to communities to fund public education via referendums,” said Jackson Parker, St. Francis School District finance director.
St. Francis seeks voter approval for an operational referendum to replace a 2021 referendum expiring this fiscal year. The district, with 1,100 students, receives about $3,000 less per student due to unadjusted revenue limits.
“Like other districts, we face rising costs for salaries, benefits, and utilities. We’ve deferred maintenance and curriculum purchases,” Parker said.
In Rio School District, Superintendent Michael Lichucki said their 360-student district struggles with the same costs as larger ones. Rio seeks a $6.2 million operational referendum for staffing, materials, and maintenance, including replacing 60-year-old windows.
“Staffing cuts in small districts eliminate programs,” Lichucki said. Rio has relied on referendums for 12 years, highlighting the dependence on voter approval for crucial funding.
If state funding matched inflation, Rio would receive $3,300 more per student. “This gap forces local taxpayers to fill the state’s role, creating disparities between affluent and less affluent communities,” Lichucki added.
Districts across Wisconsin, from urban Madison to rural Ithaca, are holding referendums. Madison proposes a $507 million capital and a $100 million operational referendum, while Ithaca seeks a $5.2 million operational referendum.
Kerr, St. Francis superintendent, stated, “When 90% of Wisconsin schools need operational referendums, it signals inadequate state funding. This will erode educational quality unless the funding formula is reformed.”
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