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Capitol Connection
By State Senator Joe Leibham
October 22, 2008
Just Ask Joe: The School Referendum Process
On November 4, in addition to important state and national elections, voters in the Plymouth Joint School District, in Sheboygan County, will decide whether or not to authorize their district to exceed the state government-imposed revenue limits by $775,000 in 2008-09, $1,100,000 in 2009-10, and $1,400,000 each year for the 2010-11, 2011-12, and 2012-13 school years. I have received a number of inquiries from Plymouth-area residents asking for an explanation of the referendum process and seeking an understanding of the extent of state aids to the Plymouth District since the original implementation of the revenue caps in 1994.
The 1993-95 state budget initially imposed revenue limits on school districts for the five-year period of 1993-94 through 1997-98. The limits were modified and made permanent in the 1995-97 state budget. Under the limits, the annual increase in a school district's per-pupil revenue derived from general state school aids, state computer aid, and local property taxes is essentially allowed to increase at the rate of inflation – usually around three percent. The exact allowable increase in revenue per pupil is adjusted annually for inflation.
A school district can exceed its revenue limit by receiving voter approval at a referendum. While most districts go to referendum due to building or renovation projects, some have sought voter approval to exceed the revenue limits for general operational expenses. The school board must approve a school district budget resolution which exceeds the revenue limit, then specify whether the proposed excess revenue is for a recurring or nonrecurring purpose, or both. The school board can either call a special referendum or hold the referendum on the date of the regularly scheduled primary or general election. The vote may not be held sooner than 42 days after filing of the board's resolution. If the resolution is approved by a majority of those voting on the question, the school board can exceed the limit by the amount approved.
The revenue caps passed in 1994 substantially modified the school funding system in Wisconsin. Following is a table that describes the amount of state taxpayer funding received by the Plymouth Joint School District since their passage almost 15 years ago. Please note that the significant percent increase in state aid in 1996-97 was due to the fact that this was the first year in which state taxpayers funded two-thirds of partial school revenues.
| Fiscal Year |
Enrollment |
State Aid |
Total School Levy |
State Aid Per Student |
Property Tax Levy Per Student |
Total Levy Per Student |
State Aid as a % of Total Levy |
| 1993-94 |
2,512 |
$6,434,178 |
$7,197,421 |
$2,561 |
$2,865 |
$5,427 |
47.2% |
| 1994-95 |
2,576 |
7,328,768 |
7,170,400 |
2,845 |
2,784 |
5,629 |
50.5 |
| 1995-96 |
2,587 |
8,129,603 |
7,132,572 |
3,142 |
2,757 |
5,900 |
53.3 |
| 1996-97 |
2,634 |
10,812,653 |
5,156,702 |
4,105 |
1,958 |
6,063 |
67.7 |
| 1997-98 |
2,620 |
10,824,361 |
5,366,152 |
4,131 |
2,048 |
6,180 |
66.9 |
| 1998-99 |
2,560 |
11,691,404 |
5,582,896 |
4,567 |
2,181 |
6,748 |
67.7 |
| 1999-00 |
2,569 |
12,110,968 |
5,628,208 |
4,714 |
2,191 |
6,905 |
68.3 |
| 2000-01 |
2,563 |
12,532,657 |
5,793,545 |
4,890 |
2,260 |
7,150 |
68.4 |
| 2001-02 |
2,567 |
12,733,457 |
6,223,296 |
4,960 |
2,424 |
7,385 |
67.2 |
| 2002-03 |
2,563 |
12,768,360 |
6,823,228 |
4,982 |
2,662 |
7,644 |
65.2 |
| 2003-04 |
2,534 |
13,008,952 |
7,036,727 |
5,134 |
2,777 |
7,911 |
64.9 |
| 2004-05 |
2,503 |
13,235,029 |
7,630,363 |
5,288 |
3,048 |
8,336 |
63.4 |
| 2005-06 |
2,494 |
13,477,141 |
8,615,646 |
5,404 |
3,455 |
8,858 |
61.0 |
| 2006-07 |
2,466 |
14,593,690 |
8,494,697 |
5,918 |
3,445 |
9,363 |
63.2 |
| 2007-08 |
2,470 |
14,513,988 |
9,240,315 |
5,876 |
3,741 |
9,617 |
61.1 |
Source: Legislative Fiscal Bureau
As you can see, state aid to the Plymouth Joint School District has grown from $2,561 per student in 1993-94 to $5,876 per student in 2007-08. Local property tax support has grown from $2,865 to $3,627 during the same time period. When the revenue caps took effect in 1993-94, the Plymouth District ranked 245 out of the 427 school districts statewide in state aid per pupil. Today, Plymouth’s ranking of 238 demonstrates just a slight improvement.
As a whole, our state commitment to 4K-12 education continues to increase. The 2007-09 state budget provided a total increase of 4.4 percent, or $524.8 million more for this purpose. Unfortunately, not all districts are treated the same under the current law and I am constantly working with my colleagues to level out the variances in the school funding formula. While we have made some improvements over the past couple of years to help districts like Plymouth, there is more work to be done. The challenge, however, is that positive changes for certain districts often result in negative changes for others and very few legislators are going to support a change that is not good financial news for the districts they represent.
The state school funding formula is very complex. I hope this general information helpful. Please contact me if I can provide any additional information.
Is there a state program, law or issue you would like me to address? “Just ask Joe” by calling me at 888-295-8750, writing to P.O. Box 7882, Madison, WI 53707-7882, or by e-mailing me at Sen.Leibham@legis.wi.gov. You can also log on to the 9th Senate District on-line office at www.leibhamsenate.com.
As always, it has been a pleasure communicating with you. It is an honor representing the residents of the 9th District in the State Senate!
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