There were over 70 school referendum questions on ballots across Wisconsin Tuesday, and according to preliminary results, about 62% passed and 38% failed.
The results determine whether school districts can keep up with costs, will need to make difficult decisions about cuts or even put themselves on a path to consolidation or dissolution. April ballot measures are just the latest round of school funding requests as school districts continue to struggle under the state’s current funding system.
Department of Public Instruction (DPI) Superintendent Jill Underly said in a statement that the slate of referendum requests this spring is a “clear signal” that the state is falling short of providing every child in Wisconsin with a quality education.
“Years of chronic underfunding from the state, combined with rising costs, have pushed too many districts into an unsustainable cycle, forcing communities to repeatedly turn to voters just to meet simple, basic needs like keeping schools staffed and the lights on,” Underly said. “This is unfair to students, educators, and taxpayers alike, and it is placing an increasing strain on communities across our state.”
Underly called on the state to reinvest in students and the state’s public schools to ensure districts can “deliver the high-quality education students deserve, without being forced to rely on repeated referendums to survive.”
School districts in Wisconsin go to referendum in order to exceed state-imposed revenue caps by getting approval from voters. The practice became a part of Wisconsin’s school funding equation in the 1990s when lawmakers put caps on school revenue as part of an effort to control local property taxes. School districts’ revenue limits used to be tied to inflation, but that ended in the 2009-11 state budget, instead leaving increases up to state lawmakers and the governor, who have not provided predictable increases budget to budget.
As a result, school districts have increasingly gone to referendum to secure funding through local property tax increases.
There were 56 nonrecurring operational requests on the ballot in April, which are revenue limit increases with an end date. In addition, there were six recurring operational requests, which do not have an end date — totaling over $1 billion in requests.
Of the nonrecurring requests, 32 passed and 24 were rejected. Of the recurring requests, five were successful and only Sauk Prairie School District’s request was rejected.
There were 12 capital funding requests this April. Nine passed, including Howard Suamico’s $147 million funding request, and three failed, including Whitefish Bay School District’s $135 million request.
The passage rate is a slight increase from the last election year and comes as Wisconsinites have become more concerned about property taxes, according to recent polling. In the spring of 2024, there was a passage rate of 60.2% with 103 requests on ballots. A Wisconsin Policy Forum report notes that passage rates tend to be higher amid the higher voter turnout of presidential and midterm election years.
Some districts’ results were decided by thin margins. Butternut School District’s $2 million nonrecurring referendum request passed by one vote. Lena School District’s $6 million nonrecurring request failed by 17 votes. The Hustisford School District sought a two-year nonrecurring referendum for $1.875 million each year. It failed by about 200 votes and now the district is looking at possibly dissolving.
A third attempt for an operational referendum by Dodgeville School District, one of three districts the Examiner profiled before the election, was rejected in a 1,680 to 1,619 vote.
District Administrator Ryan Bohnsack said in a Facebook post that the failed referendum is not the “end of the conversation.” He told the Examiner ahead of Election Day that the district was already looking at going to referendum in November if the April request was rejected, and the request then will likely be higher.
“It is a continuation of our next steps together,” Bohnsack wrote. “The financial challenges we face remain, and we will need to continue working through them thoughtfully and responsibly. Our focus will be on developing a plan that prioritizes our students and our staff.”
Bohnsack also encouraged community members to advocate at a statewide level as Dodgeville’s challenges aren’t unique.
“I encourage you to stay in contact with our state legislators and continue to ask for clear communication, transparency and long-term solutions to how schools are funded in Wisconsin,” Bohnsack wrote.
In February, a group of Wisconsin teachers, parents, students and other stakeholders represented by progressive firm Law Forward and the Wisconsin Education Association Council, the state’s largest teachers union, sued the state Legislature over the school funding formula in Eau Claire County Circuit. The lawsuit argues that the current system is unconstitutional because it does not meet the state’s constitutional obligation to provide educational opportunities to all students.
Voters rejected the $5.8 million four-year nonrecurring request by Necedah Area School District, one of the parties to the lawsuit, that was aimed at replacing the district’s last nonrecurring referendum which was first approved in April 2022 and was expiring. The request would have allowed the district to access $1.2 million in the first year, $1.4 million in the second year and $1.6 million in the third and fourth year.
Tanya Kotlowski, who has served as superintendent of the district for nine years, told the Examiner that the district has been “blessed” to pass two referendums in the past, but the recent result is “disheartening.”
“To have this one fail after that kind of devotion we’ve tried to create, it’s hard, it’s heartbreaking, but I also am very aware of the burden that we’re placing on our taxpayers because of how schools are funded,” Kotlowski said.
Kotlowski said the school board has not had a conversation about whether they will try again, but that cuts are likely.
“We do not have enough fund balance or enough savings to offset the costs that we’re going to have the next two years, so if, you know, if our board doesn’t have that, and we can’t run a deficit budget because we don’t have enough money in our savings account to run a deficit budget, it forces them to have to make decisions, so they will be in that position, for sure,” Kotlowski said. “Certainly we will have that conversation in April and beyond when we’re talking reductions and what the next game plan will be.”
Kotlowski said her district’s previous referendum was helping cover the full costs of special education, which are federally mandated services. The state currently picks up a little over a third of special education costs for public schools, despite promises during the state budget cycle to cover 42% this school year.
Even with the referendum, Kotlowski said her district will need to pull some money from savings to balance the budget. Now that the referendum has failed, the district will be looking at cuts, including to staff and programming.
“We’re going to come up with as much as we can,” Kotlowski said. “If we came up with $1.4 million in one year of reductions, it would be pretty devastating, so we will come up with what we can. We’ve had conversations already today… I can say with certainty, everybody’s going to be impacted in our community.”
Kotlowski said the referendum result and the school district’s circumstances are one example of why the state’s funding formula is unsustainable and why the lawsuit is needed.
“We’re really trying to figure out a path to financial stability, where we can anticipate and plan and predict adequate funding for the needs that we have of children within our school district,” Kotlowski said.
Wisconsin has fallen to 26th in the nation in per pupil K-12 education spending and is spending 10% below the national average, according to 2023 census data. In 2002, the state was ranked 11th and spent 11% above the national average.
“For our Necedah School District, when you look at our revenue limit, which is the authorized revenue we can bring in annually based on state law, when you look at the percentage our local taxpayers pick up and what percentage the state picks up, we have a significant gap. Our taxpayers are picking up almost 80% and the state’s picking up 20[%],” Kotlowski said. “Is it a state responsibility or local taxpayer responsibility?”
Kotlowski said that since the announcement of the lawsuit, a group of about 40 residents in the county have formed a taxpayer advocacy group. She said she thinks that the residents, who will show up to vote in November, will have a louder voice when it comes to advocating for a change in the way the state funds schools. In November, Wisconsin voters will decide who should fill the governor’s office as well as who should control the state Assembly and Senate.
“I had a taxpayer who said to me, ‘My first question for anybody who’s running for office is, How are you going to change the formula for how you fund public schools?’ That’s their first question, and depending on your answer, will decide if I vote for you,’” Kotlowski said. “We are at a breaking point, and if our community doesn’t represent that … I don’t think there’s any story that can express the lack of tolerance we have right now to fund schools the way that we have done it now for decades.”
