2024 Operational Referendum
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The current operational referendum was established in 2019 and is set to expire at the end of the 2023-24 school year. This has been a five-year, non-recurring referendum in the amount of $500,000 per year. As a district, we find ourselves right where we intended to be at the end of five years, re-assessing the best path forward financially to meet our needs. The district is seeking voter approval for a 4-year, non-recurring referendum in the amount of $1,070,000 each year. The referendum is structured the same way as the current one, but one year less. After it ends in 4 years, the district will again evaluate its financial position at that time to determine future needs.
If approved on April 2 by the voters, the operational referendum will begin with the 2024-25 school year and end with the 2027-28 school year. Similar to the current referendum, the 2024-2028 operational referendum will be utilized to maintain current levels of operation, including educational programming, staffing and maintenance costs. The referendum accounts for financial projections over the next 4 years.
The current mill rate is 6.98 and is projected to average 8.03 during the referendum. While an increase from this year's mill rate, the projected four-year average is well below the district's historical average.
Frequently Asked Questions
Why is an operational referendum needed in Frederic?
- The taxpayers supported a similar non-recurring operational referendum in 2019, knowing it would end in 2024, when the district would have to re-evaluate its financial situation. We are right where we knew we would be, evaluating the financial situation of the district to determine our best path forward. Projections indicate an increasing deficit over the next 4 years. Renewing an operational referendum will help sustain current levels of daily operations, educational programming, and staffing. The operational referendum will be utilized to address the increased inflationary costs associated with purchasing educational supplies, materials, and services. The referendum will be used to maintain our facilities. Additionally, the district needs to remain competitive with regional school districts and other employers to both attract and retain highly qualified and effective staff.
What is an Operational Referendum?
- An operational referendum asks voters for authorization to exceed the state imposed revenue limit for day-to-day operational expenses. It’s called operational because if approved, the district will receive additional funding from the tax levy to operate our schools.
- The state revenue limit is a cap on the total overall revenue from a combined amount of property tax revenue and state aid that a school district can receive in a year. An operational referendum seeks voter approval for a levy override to provide funds for the day-to-day school operational budget.
What is a Revenue Limit?
- The revenue limit acts as a ceiling on the total overall revenue, from property tax revenue and state aid, that a school district can receive in a year. This limit is the largest source of funding for Frederic School District.
- Each Wisconsin school district is assigned its own unique revenue limit by the state. The 2023-24 school year revenue limit for Frederic is $11,000/pupil, which is the lowest possible per pupil revenue limit. It is well below the state average of $11,606/pupil.
What will happen if the district does not pass the operational referendum?
- Without a successful referendum, the district will have to significantly reduce expenses. Cuts would likely include a reduction in programming, services, and staff. Additionally, the district would have to consider freezing or reducing the purchase of learning materials and resources, supplies, the deferral of annual facility maintenance and technology rotations, increased class sizes, and wage limitations. All areas of the budget would be impacted.
Why is the district asking for more money than in the current referendum?
- With the end of the current referendum and one our time federal COVID relief funds, our revenues are dropping by approximately $1 million. The referendum amount is nearly equivalent to the amount of the current referendum plus the COVID relief funds the district has needed to use for operations rather than one time expenditures. Inflation has continued to increase, outpacing state funding levels. This is not a new problem, but the problem perpetuates over time. Despite the district planning to reduce expenditures next year, it needs the referendum amount due to a much higher decrease in revenues.
Has the District spent the federal COVID relief funds?
- Federal COVID relief funds are one-time funds distributed to districts across the country. Wisconsin school districts received a portion of the federal funds, but there was no increase in revenue limits for districts during that time. Due to the lack of an increase, coupled with unpredicted increases in inflation, a majority of school districts across that state had to use their COVID relief funds for daily operations. Where the district could use the funds for one-time expenditures, it did; however, some funds have had to be used for ongoing operational costs. Districts have until September 2024 to fully spend all COVID funds.
How will this referendum impact my taxes?
- The 2023-24 mill rate is at $6.98 per $1000 valuation, the lowest the district has ever been. With a passed referendum, the projected mill rate will average $8.03 during the four years. While this is an increase from our current mill rate, it remains well below our historical average. The referendum amount keeps the projected mill rate relatively consistent and stable.
Year
|
2023-24
|
2024-28 Projected Average
|
Mill Rate |
6.98 |
8.03 |
School Taxes on $75,000 |
$524 |
$602 |
School Taxes on $100,000 |
$698 |
$803 |
School Taxes on $150,000 |
$1047 |
$1205 |
School Taxes on $200,000 |
$1396 |
$1612 |
School Taxes on $250,000 |
$1745 |
$2008 |
School Taxes on $300,000 |
$2094 |
$2409 |
*Based on Equalized valuation growth of 4% (24-25) and 2% each year after |
*Represents all school tax levy |
How common have Operational Referendums become to fund school districts?
- Referendums have been a necessary financial tool for a majority of school districts across the state. There are 421 school districts in the state. We are not alone when it comes to needing additional funds to operate our district. Over 80% of districts statewide have been forced to seek operational referendum support from their communities. In fact, nearly 25% of all districts have at least 10% of their base revenue limit supplemented by non-recurring operational referendums.
- Since 2019, there have been 159 non-recurring referendums passed throughout the state. This represents a success rate of 76%.
Has the district taken measures to either reduce expenditures or increase revenues?
- A top priority of the district is to maintain and expand student opportunities. To do so takes staffing and resources. That said, the district's projected 2024-25 general fund expenditure budget is reduced by approximately $120,000 from the 2023-24 budget. In terms of securing more funding, administration and staff are diligent with their efforts to secure grant funding. Just this month, the district learned it has been awarded two separate competitive grants. The Stronger Connections Grant provides $300,000 to implement a robust multi-level system of support for our students. Through the Unlocking Pathways Grant, Frederic High School has been selected as a pilot school to implement career advising and navigation, dual enrollment opportunities with technical colleges, work-based learning experiences, and workforce credentials. The District is awarded up to $45,000 each year for three years.
How are our schools doing compared to others?
- We are proud of our students, staff, and accomplishments. Like all districts, we continuously work to improve upon current conditions so we can offer our students the best learning experiences throughout all our learning spaces. There is always room to improve. Our state report cards certainly don't tell the whole story of our district, but we are very excited that all three report cards indicate we are meeting or exceeding expectations. In fact, based on the overall score, our Frederic Elementary School ranks 4th out of 39 elementary schools within CESA 11.
|
|
School Year (Fall) |
Mill Rate |
District Levy Amount |
2027 (Projected with Referendum) |
7.67 |
|
2026 (Projected with Referendum) |
7.94 |
|
2025 (Projected with Referendum) |
8.35 |
|
2024 (Projected with Referendum) |
8.18 |
$4,413,252 |
2023 |
6.98 |
$3,620,977 |
2022 |
8.19 |
$3,620,977 |
2021 |
9.60 |
$3,607,826 |
2020 |
9.99 |
$3,463,124 |
2019 |
10.20 |
$3,319,848 |
2018 |
7.00 |
$2,182,059 |
2017 |
9.85 |
$2,946,432 |
2016 |
10.44 |
$3,080,436 |
2015 |
10.26 |
$2,927,244 |
2014 |
10.37 |
$2,980,298 |
2013 |
10.26 |
$2,972,534 |
1984 - 2012 Average |
13.09 |
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