About the Referendum
Addressing Critical Needs in the Elcho School District
The Elcho School District has served students and families well over the years. Our schools offer a top-notch education in a tight-knit educational environment. At the same time, district leaders have made the most of the dollars community members have invested in their local schools.
However, while our district is high-performing, we face significant financial challenges. Most of these challenges are out of our control and are primarily related to the state's school funding system.
On Tuesday, April 5, 2022, district residents will vote on a referendum question. If approved, the referendum will provide the Elcho School District with the financial support it needs to sustain its programs and services over the next several years.
Challenges Tied to State Revenue Limit
Wisconsin schools operate under a state-imposed revenue limit that restricts the amount of money a district can receive. The Elcho School District has a lower revenue limit per student than an overwhelming majority of districts in the area.
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This is partly because a Wisconsin district's revenue limit is tied to its enrollment. Districts with declining year-over-year enrollments have revenue limits that typically decline faster than their ability to save money due to serving fewer students.
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At the same time, the needs of our students have increased dramatically, especially in the areas of special education and mental health. These are expenses for state- and federally mandated services for which the district receives inadequate funding. In addition, costs for things like running our buses and heating our schools continue to increase, as do other expenses that are out of the district's control.
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While the average Wisconsin district receives $6,447 per student in state aid, ours receives only roughly $10,000 for the entire district which is about $40 per student.
Considering these facts, we are concerned about the long-term sustainability of our school district.
We invite you to learn more about the district’s financial challenges, what we have done to address them to date, and how we can move forward in a way that maintains the long-term financial health of our local schools.
Budget Cuts
As a result of the district’s budget challenges, board members and district leaders do what our families do in these situations — they seek to cut costs.
- Nearly $600,000 in expense reductions were made in 2021-22 alone. These reductions include about $480,000 in salary and benefits costs, reducing contracted services, postponing curriculum purchases, and minimizing supplemental costs such as field trips and classroom supplies.
- The board is projecting to use the district’s fund balance for another $376,308 during the 2021-2022 school year. Using the fund balance for operating costs is not sustainable and may lead to the district needing to use short-term borrowing to cover payroll and meet other expenses. It also threatens the district’s good bond rating, which could lead to higher costs when borrowing is necessary.
Although we are very proud of our financial discipline, the district has made so many expense reductions in recent years that we worry about harming our schools and students over the long term if this trend continues. The operational referendum is necessary to maintain current programming and provide residents with the high-quality schools they have come to expect.
Replacing an Expired Referendum
As a result of the district’s financial challenges, voters approved a referendum in 2016 to exceed the revenue limit by $500,000 per year. That referendum has now expired.
Without the passage of an operational referendum, the state’s funding formula does not work well for our school district, as we have high average property values combined with high rates of poverty. Because of this, the responsibility to fund our schools rests largely on local property taxpayers.
Referendum efforts in November 2020 and April 2021 to renew the expiring referendum were not successful.
Taxpayer Impact of April 2022 Referendum
The April 2022 referendum question is larger than the 2017 referendum because it will address the increased costs for items such as transportation, special education, and the district’s further declining revenue limit. If voters approve the upcoming referendum, the district will be able to avoid significant cuts in student programs over the next several years.
The property tax impact of the April 2022 referendum is estimated at $103 per every $100,000 of assessed property value based on the most recent data. Our mill rate will be about 6.709 which is still one of the lowest in the state and low compared to all of our neighboring schools. (2021-2022 School Year data: White Lake 12.72, Rhinelander 9.97, and Crandon 8.01, Antigo 6.75, and Elcho 5.68)
Ballot Language
“Shall the School District of Elcho, Langlade and Oneida Counties, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $1,000,000 per year for three years beginning with the 2022-2023 school year and ending with the 2024-2025 school year, for non-recurring purposes consisting of operational and maintenance expenses?”
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