Frequently Asked Questions
What do you mean by “inadequate funding from the state of Wisconsin”?
The state funding formula doesn't work. The school funding formula in Wisconsin is based on a snapshot in time of each district's spending from the 1993-94 school year. Since each district was spending differently, with variances up to 250% depending on in-flight capital projects like new schools or upgrades, the amount each receives per student is different.
Furthermore, state funding for schools was uncoupled from inflation following the Great Recession in 2009 and has lagged behind cost increases ever since. A funding gap of over $3K per pupil is expected for the 2024-2025 school year!
Not only that, the education spending as a percentage of the State of Wisconsin's General Fund has actually decreased!
What are the unfunded mandates?
School districts are required by state law to provide special education services to qualifying students, yet is only 33% funded by the state. For MTSD, this results in the spending of at least $5 million annually from the general education fund to support the required services provided to students receiving special education programming.
Additionally, Act 20, which was passed in December 2023, requires entirely new strategies and curricula around early reading. No additional funding was provided by the legislature. The cost to the district to meet the requirements will be approximately $400,000.
What would the tax impact of the referendum be?
The estimated tax impact of an approved referendum would be an increase of $0.73 per $1,000 of equalized fair market property value. For a home with a fair market value of $400,000, the total tax impact is estimated to increase by $948 spread over 4 years, before returning to today's level.
For more information on the district's needs, the proposed operational referendum, and the property tax impact, please visit www.mtsd.k12.wi.us/referendum.
What would go away if the referendum did not pass?
Class sizes would likely increase across all grades, and some non-mandated programs and services would have to be cut. Some potential options to discontinue include:
- 4 year old kindergarten (4K)
- Talented, Advanced & Gifted Program (TAG)
- Reading Specialists at each elementary and middle school
- Math Specialists at elementary or middle schools
- Elementary Orchestra and Band programs
- All Choir programs
- Theater and anything related to the Performing Arts Center
- Writing lab
- AVID
- The full-time district nurse
- New chromebooks and computer lab replacements on schedule
- Transportation for all athletics
- Non WIAA sports - Ski Club, Cheer Team, and Dance Team
Additionally, MTSD has divided services into categories of Must Do, Should Do and Wish List for each of the following areas: Elementary, Middle, High School, Athletics, Facilities and Maintenance, Business Services & Operations, Educational Services, Student Services, and Superintendent and Board of Education on slides 15-56 of this presentation.
Are we the only district that has to do this?
Absolutely not. Since the school revenue limit was enacted in 1993, 85% of public school districts in Wisconsin have already had an operating referendum on the ballot and and as of this writing, there were 241 referendums from 192 districts around the state of Wisconsin for 2024.
More than 150 school districts across Wisconsin have held operating referendums since April 21, with questions before 62 districts on the April 2, 2024 ballot. (Credit: PBS Wisconsin)
How did we get here?
The current crisis was created by 3 main factors: A broken State of Wisconsin school funding model that was initially based on unrealistic numbers, a decision to decouple funding from inflation, and a recent pandemic fiscal decision.
School levy limits were imposed by the state in the early 1990s to control property taxes. Unfortunately, the model used per student funding from each district from a single snapshot in time. Some districts at the time were involved in large expansion projects and some were cutting costs, so the samples were not indicative of spending trends over time, which has resulted in very different per student funding for each district that remains in place today.
Those funding levels were originally increased annually to account for inflation. However, in 2009 those increases were halted. Funding has lagged behind inflation ever since.
To make matters worse, during the pandemic in 2021, the Federal Government gave the State of Wisconsin $1.5 billion earmarked for schools to aid with unexpected spending because of COVID-19. Regrettably, rather than use it for emergency spending, the state legislature decided to not increase state school funding for 2 years and make up the difference with the Federal emergency aid. The Federal aid has now ended.
What is the state required to provide?
There are many regulations around public education, including the most recent Act 20 regarding beginning reading methods and laws around special education.
According to the Wisconsin Constitution, “The legislature shall provide by law for the establishment of district schools, which shall be as nearly uniform as practicable; and such schools shall be free and without charge for tuition to all children between the ages of 4 and 20 years; and no sectarian instruction shall be allowed therein; but the legislature by law may, for the purpose of religious instruction outside the district schools, authorize the release of students during regular school hours.”
Why should I be concerned about the referendum?
Simply put: Good schools increase property values because they make a community a desirable place to live. New residents research local schools and often choose their home based upon those schools. Desirability increases demand and demand increases value.
Per the National Bureau of Economic Research, “[A] $1.00 increase in per pupil state aid increases aggregate per pupil housing values by about $20.00, indicating that potential residents value education expenditure.”
How do we know the district is being as efficient with our tax dollars as possible?
MTSD has the top Aaa ranking from Moody's bond rating agency. Only 2 other public school districts in the state of Wisconsin also hold this distinction for fiscal performance. From the MTSD website: "The Mequon-Thiensville School District has a long history of maintaining financial prudence and responsibility, even in challenging times. We are proud of our ability to budget conservatively, spend wisely, and ensure that we are getting the most out of every dollar. This status has been reaffirmed for more than a decade through our consistent Aaa bond rating from Moody's.”
Didn't the state budget just give a historic increase for Wisconsin schools?
Yes and no. While the most recent budget did increase per student funding by $325, the existing funding gap was already over $3K per student, so it does not come close to solving the problem.
