Record-high number of school referendums held this year, but approval rates are declining

On Nov. 5, Wisconsin voters approved nearly 78% of the 138 school district referendums across the state.

That’s higher than the 60% passage rate this past spring, but the percentage of K-12 referendums approved statewide has been declining since 2018, according to the Wisconsin Policy Forum.

The 70% approval rate of all school referendums this year was a 10 percentage-point decrease from 2022 and was the lowest passage rate in a midterm or presidential election year in the last decade.

But more and more districts are going to referendum as state aid has fallen far behind inflation over the last 15 years. A total of 241 questions were posed in 2024, the most ever held in a single year, according to the Policy Forum.

Almost half of Wisconsin’s 421 school districts went to referendum this year, asking for a record total of nearly $6 billion from taxpayers — up from a previous record of $3.3 billion in 2022. Voters ultimately approved $4.4 billion in additional taxes.

School districts are increasingly holding operational referendums, asking residents to take on a recurring tax hike just to cover everyday costs like utilities, routine maintenance and staff salaries. Capital referendums are one-time asks for big projects like a new school.

This year, 66% of operational referendums passed statewide, while 76% of capital referendums passed. There were 148 operating referendums held, the most on record, according to the Policy Forum.

The reliance on school referendums comes amid a heavy debate over state-imposed revenue limits and funding for public education.

Revenue limits were created in the early 1990s to keep in check school property tax increases. In 2009, the state Legislature decoupled per-pupil revenue limits from inflation, and districts have had to manage tighter budgets ever since, especially as inflation in recent years has exceeded revenue limit increases.

Wisconsin’s per-pupil K-12 spending increased at a lower rate than every other state in the nation besides Indiana and Idaho between 2002 and 2020, according to the Policy Forum.

School districts across the state are also grappling with declining enrollment, mainly caused by a drop in birth rates.

“Schools are funded based on the number of students we have, so as we have fewer students, our budget shrinks,” Kenosha Unified School District Superintendent Jeffrey Weiss told Wisconsin Watch.

When costs exceed the per-pupil revenue available to the district, state law allows them to go to referendum to ask their voters to authorize their district to exceed their revenue caps at the expense of property taxpayers.

State revenue limits have fallen more than $2,300 behind inflation per student behind inflation  even in smaller school districts like Hudson, generating millions in lost revenue.

The 2023-25 state budget included a yearly increase of $325 per student to the state-imposed revenue limits. But that increase still lags behind inflation, Wauwatosa School District Superintendent Demond Means told Wisconsin Watch. 

“Are they providing more money to schools? Yes, but they’re still behind. They’ve dug a hole for themselves,” Means said. “They have to come to grips with the fact that they have created an obstacle and a gap that they have to fill.” 

Schools are still reeling from a freeze in revenue caps in the 2021-2023 budget, Means said, in which the Legislature provided zero increases to public school funding immediately following the pandemic. Wisconsin ended its 2024 fiscal year with a $4.6 billion budget surplus.

Republican lawmakers tout the $1 billion they added to the budget for public schools last year, emphasizing that education is the largest portion of the state budget. The increase was part of a deal struck between the GOP-controlled Legislature and Democratic Gov. Tony Evers to simultaneously increase funding for private school vouchers. 

Democrats argue the state has fallen so far behind, $1 billion isn’t nearly enough. 

“Those are just red herrings,” state Superintendent of Public Instruction Jill Underly told Wisconsin Watch. “They’re trying to distract because public education has always been one of the most expensive components of our state budget. It just is. It’s a labor-intensive operation, and labor costs money.”

Underly recently called for a $4 billion increase in public school funding in the Department of Public Instruction’s state budget request. It includes a proposal to tie revenue limits to inflation again.

“The fact that we’ve gone to referendum now three different times in the last six years is a sign that state funding is really becoming a challenge,” Means said. “A community like Wauwatosa does not take going to a referendum lightly.”

The district just passed operational and capital referendums totaling $124.4 million. That translates to a $630 annual tax increase on a $300,000 home, according to district calculations.

While passage rates are typically higher in a presidential or midterm election year due to voter turnout, some referendums still failed. School districts like Hudson, serving many rural, conservative townships, are now faced with a choice: cut programs and staff or push to referendum again in April. Its $5 million operational referendum was voted down on Nov. 5.

The referendum would have increased property taxes annually by $5 on a $500,000 home, according to district calculations. 

“These are recurring expenses. This is literally to make ends meet,” Hudson School District Superintendent Nick Ouellette told Wisconsin Watch.

State lawmakers like Rep. Shannon Zimmerman, a Republican who represents the city of Hudson, have suggested that schools need to close and consolidate in light of declining enrollment. Ouellette said it’s not that simple. 

The district is receiving less per-pupil funding from the state due to a steady drop in students. But enrollment is not declining at a fast enough rate to immediately close and consolidate schools and classrooms, Ouellette said. 

“You lose the revenue, but you don’t lose the expense,” Ouellette said. “You have to allow things to drop enough before you can cut.”

Ouellette said blame is often directed at the school districts with claims that they are mismanaging their budgets or not “living within their means.” 

“State lawmakers are well aware that if they continue to not fund schools, it will force local school districts to ask their property tax payers to pay more,” Ouellette said. “So they understand they are raising taxes.”

In Hudson, 54% of the school district’s budget is paid by local taxes, 39% is covered by state aid and 3% comes from federal aid, according to the Policy Forum. A decade ago more than half of the district’s operating revenue came from state aid.

“They’re placing school systems in a very precarious position,” Means said. “Local communities are, in essence, bailing out the Legislature, and that has to stop.”

Forward is a look ahead at the week in Wisconsin government and politics from the Wisconsin Watch statehouse team.

This article first appeared on Wisconsin Watch and is republished here under a Creative Commons license.