More school districts going to referendum
Passage rate this year could be the lowest since 2010
In many communities across Wisconsin, voters saw more crowded ballots than usual this spring. During February and April elections, there were more Wisconsin school referendums than there have been in over two decades. ● Now that elections are over, the Wisconsin Department of Public Instruction has released the results of referendum questions statewide. The Wisconsin Policy Forum also analyzed the results of voter decisions this spring, focusing on school referendum questions held during even-numbered election years. ● Here’s what the numbers tell us.
The Wisconsin Policy Forum chose to focus on evennumbered election years because years without a presidential or midterm election cycle tend to see fewer referendum questions and voter activity, it said.
Already, 103 school referendums have been held in Wisconsin in 2024, during the February and April elections, according to data from the DPI. That’s the most in spring elections since at least 2000, the Wisconsin Policy Forum said. And districts still have time to go back and revise failed referendum questions for the fall election, in addition to new referendum questions appearing on the ballot.
Because of these factors, Wisconsin Association of School Boards president Dan Rossmiller said that there’s a possibility we could see “a record number” of referendums in Wisconsin school districts this year.
By comparison, the 2022 spring election cycle had 82 school referendum questions across the state. The total number of referendum questions for all of 2022 was 166, the most since 2001. School districts still have time to decide whether they want to place referendum questions on the fall ballot.
According to DPI data and the Wisconsin Policy Forum, 60% of school districts’ referendum questions passed during the February and April elections this year. Voters statewide approved $534.2 million in new borrowing, $199.6 million in temporary increases to school budgets and $293.3 million in permanent increases.
The largest referendum to pass this spring came from Milwaukee Public Schools, which will increase property taxes so the district can prevent budget cuts;
the referendum initially authorizes an additional $140 million for the district’s operating budget for next school year, and then ramps up to $252 million annually by the 2027-28 school year.
Other major referendums that passed were in New Richmond and Freedom, where voters authorized capital improvements costing $113.7 million and $62.5 million, respectively.
If the statewide passage rate remains at 60% — or decreases for fall referendums — the passage rate for school district referendums this year could be the lowest in an election year since 2010, according to the Wisconsin Policy Forum.
Each community has its own reasons for approving or rejecting school district referendums, but referendum failures in Mukwonago and Shiocton point to some common issues.
In Shiocton, voters in February approved $7.4 million for operating costs but rejected $35.8 million for school building upgrades. At the time, district administrator Nichole Schweitzer told The Post-Crescent that two of the district’s communities recently had property tax reassessments, and the district also just received a thousand-dollar increase in its revenue limit.
As a result, Schweitzer said, voters might have rejected the referendum because of uncertainty “about what their (property) taxes were going to do.”
Earlier this month, Mukwonago voters rejected $102.3 million for their schools’ capital project. School Board member Erika Conner told the Journal Sentinel
that “the community may not have been ready to take on additional financial load” due to inflation. She also said it might have been too soon for the community, since voters approved a municipal referendum to fund additional fire department positions in 2022.
“Many voters have experienced financial challenges of their own due to inflation,” the Wisconsin Policy Forum noted in its analysis. “They may also be less inclined to support referendums for their local district after being asked in some cases to do so only a few years prior.”
Where does the money go?
Generally speaking, referendums are used for either operating costs or capital projects. While capital referendums fund building or renovation projects, operating referendums allow districts to exceed revenue limits for either an unlimited or limited amount of time. Those funds are used for the day-to-day expenses of running the district.
The Wisconsin Policy Forum said two-thirds of the referendum questions this spring were for operational referendums, which fill budget gaps in districts. This is a sign that schools are facing stress “from inflation, state caps on their revenues, declining enrollment, and the expiration of federal pandemic aid,” the forum report said.
According to a November 2023 report from Forward Analytics, a quarter of Wisconsin school districts in 2022 depended on operational referendums for 10% or more of those budgets. And, if those operational referendums fail, Rossmiller said, “having to cut that much from school budgets is serious.”
Often, Rossmiller added, schools trim budgets by cutting programs for students. And if schools instead close buildings and readjust boundaries, they face the ire of voters who may have bought a house based on a certain school assignment — and are less likely to vote yes to future referendums.
Since 1993, Wisconsin schools have been subject to revenue limits, which define how much, per student, schools can receive in state aid and local property taxes. While revenue limits initially were set to adjust with inflation, increases in those limits now have to be approved by the Legislature. Since 2009, those increases have not kept pace with inflation.
Enrollment statewide has also fallen over the past decade, which further decreases the amount of money available to schools. As a result, schools are turning to their communities more and more to get funding for new building projects or to maintain programming.
“It’s a problem that’s not going to go away as long as inflation exceeds adjustment in revenue limits,” Rossmiller said. The combination of lower enrollment and inflationary pressures, he said “is just tightening the clamps on school districts.”
“If you had to go to your boss every time you couldn’t pay for your house or groceries, it’s uncomfortable,” he added. “And it’s uncomfortable for schools. It’s amazing they’ve done as well as they have for as long as they have.”
In a statement about the April 2 referendum results, state superintendent Jill Underly said, “For far too long, Wisconsin has willfully underfunded our public schools and it’s led to severe financial constraints and difficult choices.”
She added, “We owe it to our kids to make the necessary investments, and to stop forcing local communities to make impossible choices.”
Contributing: Rory Linnane, Alec Johnson.