Frequently Asked Questions

logoBelow are frequently asked questions regarding the operational referendum that the Shorewood School District is seeking to get approved. The FAQ is divided into categories for easier navigation. Please note, this is a fluid page and more information will be added as additional questions arise. Please check back often for the latest information.
 
If you have a question/concern that is not addressed and may benefit the community, please submit your question here. 
 REFERENDUM BASICS
 
Since 1994, Wisconsin school districts have been primarily funded by a combination of state aid and local property taxes.
 
Each school district in Wisconsin has a revenue limit created by the state budget. This limit caps the amount of money a district can receive through state aid and local property taxes. A district’s revenue limit is directly linked to two things: enrollment and state-approved adjustments. In most cases across the state, the revenue limits have not kept pace with inflation.
 
In addition, school boards can ask voters to pass an operating referendum. An operating referendum allows the district to raise its revenue limit authority.
 
Most districts in the state have used operating referendums to meet their budget challenges. 
 
Operational Questions
 
The majority - 82% - of Wisconsin school districts have proposed operating referendums. Since 2018, 83% of operating referendums have passed. 
 
Stagnant education funding from the state Legislature, as well as an economy complicated by the pandemic and inflation, is causing school districts across Wisconsin to navigate serious funding issues. Due to the “disconnect” between rising costs and frozen state funding, more districts are turning to voters to maintain operations and to meet capital needs.
 
Statewide, there have been 166 school referendums this year. That’s the highest number of referendums since 2001, when there were 167. Wisconsin school districts are seeking  referendums to avoid having to make sharp cuts. 
 
Unless Wisconsin school funding methods change, operating referendums will continue to be necessary to avoid drastic cuts in programs and services.
82% of Wisconsin school districts have proposed operating referendums since 1992. Neighboring districts in southeastern Wisconsin that are among the 295 that have proposed and passed operating referendums since 2018 include:

 

Fox Point-Bayside 2018 & 2022

Glendale-River Hills 2019

Nicolet 2021

Maple Dale-Indian Hill 2019

Milwaukee Public Schools 2020

 

A school district can only place a referendum question on a ballot after going through an official process. The referendum process starts when a school board adopts a resolution to exceed the limit. The permission to exceed the revenue limit can be for either recurring or nonrecurring purposes, i.e., can continue indefinitely or be only for a set period. 
 
The school district clerk must then submit the referendum to voters at the next primary or general election, as long as at least 70 days pass between the resolution’s adoption and the election. 
 
The Shorewood School District has met these requirements and an operating referendum question will be included on the April 4, 2023 ballot.
 
Districts may not conduct referendums to exceed the revenue limit or issue debt more than twice per year. Tangentially related to raising funding, school boards may also use referendums to give teachers raises. A school board that wishes to raise the base wages of teachers in the district is limited to an increase equal to an increase in the Consumer Price Index, a measure of inflation. However, it can exceed that limit by conducting a referendum in its district.  No additional revenue or debt is raised by this type of referendum.
 
*Info provided by the Wisconsin Legislative Reference Bureau
School districts may initiate two types of referendums to increase funding. 
 
First, a district may hold a referendum to issue debt for a specified purpose. These are often referred to as “capital referenda,” because the funds are typically (but not always) for construction and other large capital projects.  A capital referendum provides the authority to issue a certain amount of bonds/notes to pay for a capital project.
 
Second, a district may initiate a referendum to exceed its revenue limit without issuing new debt. These are referred to as “operating referenda.” An operating referendum pays for things such as utilities, routine maintenance, salaries and benefits of all staff, insurance, supplies, etc.
 
The District is seeking an operating referendum.
The word recurring means “occurring again periodically or repeatedly.” In a recurring referendum, there is an amount of dollars added each year in perpetuity.  The word non-recurring means “not occurring repeatedly or occurring one time only.” In a non-recurring referendum, the amount of dollars is added on a temporary basis (number of years specified).
 
The District is seeking a non-recurring referendum for the next 5 years.
 SSD OPERATIONAL REFERENDUM INFORMATION
 
In Wisconsin, all school districts operate under a revenue limit created by the state budget. This limit caps the amount of money a district can receive through state aid and local property taxes. 
 
Increasing costs of inflation have outpaced revenue in recent years—a trend that is expected to only increase the next five or more years. In fact, our school district’s per-pupil revenue caps have lagged inflation by about $3,200 per student since 2009. This trend equates to $5.5 million in lost revenue this year alone for our district.
 
Now, Wisconsin school districts are entering the second year of $0 increases to per-pupil funding from the state. Districts also face increasing costs and the challenges of retaining and recruiting educators, as fewer people are entering the education field.
 
Despite these challenges, District leaders and the Board have been disciplined in making the most of every dollar our taxpayers invest and meeting our community's expectations for top-notch schools. We have reduced expenses in the 2022-23 budget by over $1 million.
 
Even with established short-term and long-term budget balancing strategies in place, we project a shortfall of $2.5 million next year, and a gap of $25 million over the next five years. 
 
The bottom line is that our district’s current operating budget cannot advance our mission of achieving equity, growth, and excellence for all without support through a voter-approved operating referendum.
Voters will see the following question on the ballot on Tuesday, April 4, 2023: 

"Shall the School District of Shorewood, Milwaukee County, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $5,500,000 per year beginning with the 2023-2024 school year and ending with the 2027-2028 school year, for non-recurring purposes consisting of operational and maintenance expenses, including salaries, benefits, and instructional and extra-curricular programming?"
Under the state of Wisconsin’s one-size-fits-all funding mechanism, much of the responsibility for funding schools rests on local property taxpayers. The state legislature has also frozen increases to state aid for public schools over the last two years at a time when districts must address the challenges of rising costs and a highly competitive labor market. 
Salaries and benefits comprise over 80% of our current budget and over 80% of projected expense growth over the next five years.
 
Our district, like many others, does not receive adequate funding to cover programs and services mandated at the state and federal levels and that are designed to provide equitable opportunities for students to grow and reach their maximum potential. We received no per-pupil funding increase over the past two years. Funding and reimbursement to public schools for essential services like special education and multi-language services is particularly lacking.
 
An operational referendum is one choice the community could make so that significant cuts in programming, services, and staffing would not need to be made. Overall, the number of operational referendum questions on recent ballots across Wisconsin reflects a significant shift in the state’s commitment to funding schools. 
If the operating referendum were not on this April’s ballot, the next opportunity would not be until April 2024. Even with an increase in state funding, the District expects sizable gaps over the next five years. Waiting an additional year would require sizable budget reductions even with additional state funding.   
Over the past several months, the Shorewood Board of Education has been engaged in a process to examine our district’s needs and explore potential solutions.
 
The Board convened a community work group to explore the possibility of an operating referendum to help offset the anticipated impact of the growing gap between District revenue and expenses, projected to be approximately $25 million over the next five years. The work group was tasked with providing a recommendation to the Board on if and how to proceed with a potential referendum.
 
The work group reached a general consensus that the Board should pursue a five-year, non-recurring operating referendum.
Impacts for individual taxpayers are determined by the total value of property in the District and how it changes compared to the rest of the state. The current trajectory projects that property taxes will decline over the next five years, even with the operating referendum.  To be conservative, however, the District also looked at a scenario where property values remain static and the increase to the levy is absorbed as if there are no changes.  Under this assumption, the property tax impact of the referendum is estimated to be $123 per $100,000 of assessed fair market value or $369 for a home assessed at $300,000 fair market value in 23-24.
 
It’s important to note that this figure may decrease over time if current trends in state funding continue. The impact could also be higher or lower based on future property valuations in our community.
If approved by voters, the April 4 referendum would provide the District with $5.5 million each year for five years, beginning in the 2023-24 school year. While the District still needs to make budget reductions, these funds would prevent reductions that go beyond right-sizing to our current needs and ensure we can continue offering competitive salaries, benefits, and instructional programming. 
 
These are not “additional” funds that we are requesting, as in a facilities referendum. Instead, the funds will bring revenue up to the level needed to meet rising expenses.
 
These funds would also help ensure we can effectively maintain our assets and position ourselves for long-term financial health as inflation puts additional pressure on our operational costs.  
With passage of the operating referendum, the proposed budget would allocate funds to cover a total base wage increase that includes funding the existing steps and lanes salary structure for teachers for the upcoming school year.  Moreover, the Board supports District Administration considering similar, future total base wage increases for all employees through the five years of referendum funding.
 
The reassurance given by the Board at the Feb. 14th meeting responds to what we heard expressed by our teachers - a desire for a predictable salary system built on steps and lanes.  This addresses both lane movement for those in educational programs and a yearly step.  We cannot promise that a total base wage increase will do more than this. 
 
How did we apply salary increases last year?
For the 2022-2023 budget, the District applied 4.7% to all salary schedules. For all groups with steps/lanes schedules (teachers, aides, custodians and secretarial groups), the cost of steps and lanes adjustments was taken from the total dollar amount first, and then the remainder was applied to adjusting the value of each cell on the schedule.
 
Is this a change from previous years?
The Board has prioritized steps and lanes, but since 2020 it has become increasingly difficult to fund steps lanes and CPI. First, CPI increases have outpaced revenue, and it has become clear that the state will not be adjusting their contribution to school funding to help offset this gap. Second, supporting "consistent and predictable" compensation and benefit plans for all employees as outlined in Operating Expectation 4, the Board is committed to salary adjustments that are equitable across all employee groups, meaning we would not offer one group a larger overall raise than other groups.  
 
Are the District's salaries competitive?
Board Policy (OE 4.8)  seeks to have teacher salaries within the top 33rd percentile compared to CESA1 school districts. As of the last 1202 staffing report released by DPI in 2022, Shorewood teacher average salaries ranked in the 87th percentile among CESA1 school districts and in the 97th percentile statewide.
 
Bottom line?
We value our teachers and staff! If approved by voters, the April 4 referendum would provide the District with $5.5 million each year for five years, beginning in the 2023-24 school year. While the District still needs to make budget reductions, these funds would prevent reductions that go beyond right-sizing to our current needs and ensure we can continue offering competitive salaries, benefits, and instructional programming. 
 
These are not "additional" funds that we are requesting, as in a facilities referendum. Instead, the funds will bring revenue up to the level needed to meet rising expenses.
These funds would also help ensure we can effectively maintain our assets and position ourselves for long-term financial health as inflation puts additional pressure on our operational costs. 
Yes. The April 2023 referendum is a non-recurring, five-year referendum. This means that it would expire at the end of the 2027-28 school year unless voters approve another referendum in the future. 
If the referendum is not approved on April 4, the District will need to make significant cuts to programming, services, and staffing throughout our schools.
 
As we build the budget for next year, we are looking at the need to reduce by $2.5 million.  That’s over two and a half times the amount of reductions that were put in place this year  There is no way staffing will not be impacted as it comprises roughly 82% of the district budget.  
 
Reductions we would be looking at if the Operating Referendum does not pass:

  • Reduce staff
    • Amend the class size guidelines and pursue course, programmatic and student-service modifications
  • Freeze and/or significantly reduce salary increases
  • Immediate reductions to employee benefits 
  • Align staffing to current student populations
    • Seek efficiencies in all staffing categories
    • Utilize class size target guidelines to guide staffing reductions and course offerings
  • Health benefit model restructuring to minimize annual district cost increases
  • Reduce outside consultant contracts
 
NOTE as of 3-8-23:  The budget is still being developed. As students are still in the process of registering for classes at SIS, we will know more details about specific reductions and course offerings as they become available. Student enrollment by grade level at the elementary level and in specific courses at the middle and high school level is a key driver of staffing decisions.
 
Given the magnitude of potential budget reductions that would be required without additional revenue through an operating referendum, the District would not be able to maintain a strong and healthy school system that attracts new residents to Shorewood.
 
We believe we must take action to maintain property values, provide a comprehensive set of experiences and opportunities to students, and deliver excellent academic outcomes.
The last time Shorewood School District voters approved a referendum was in April 2019. However, that was a capital referendum to fund improvements to the District’s facilities. These funds cannot be used for purposes other than to make payments on the debt the District incurred for the recently completed facilities projects.
 
The item on the ballot in April 2023 is an operating referendum question. If approved, it would provide the District with the necessary funds to balance its budget, retain high-quality staff, maintain key programs and services for students, and ensure the District has sufficient financial resources to meet operational and maintenance expenses into the future.
 SUPPORTING FINANCIAL INFORMATION
 
If approved, the non-recurring referendum would provide the District with $5.5 million each year for five years, beginning in the 2023-24 school year. The referendum would expire at the end of the 2027-28 school year. 
Reductions we are looking at regardless of the Operating Referendum results:
 
  • Align staffing to current student populations
    • Seek efficiencies in all staffing categories
    • Utilize class size target guidelines to guide staffing reductions and course offerings
  • Health benefit model restructuring to minimize annual district cost increases
  • Reduce outside consultant contracts
 
NOTE as of 3-8-23:  The budget is still being developed. As students are still in the process of registering for classes at SIS, we will know more details about specific reductions and course offerings as they become available. Student enrollment by grade level at the elementary level and in specific courses at the middle and high school level is a key driver of staffing decisions.  
In recent years, the Board of Education and District administration have worked hard to balance the District’s excellent performance against constantly changing financial circumstances and strategic improvements to meet the needs of our students.
 
In preparing the 2022-23 budget, the District reduced expenditures by over $1 million, in addition to absorbing a 4.7% compensation increase, a 9.5% medical benefit expenses increase, and other inflationary expense increases. This included:

  • Consolidated grade level or content-area sections in all schools
  • Decreased administrative staffing
  • Decreased spending on materials and supplies
  • Reduced spending on outside vendor/service contracts
  • Changed healthcare policy
  • Added new open enrollment students
 
Workforce realignments - including position reductions and reduced hours - put into place for this school year totaled 17.75 FTE (full time equivalency), across all employee groups.  To repeat for clarity – that’s a total of 17.75 FTE in addition to other savings to reach $1 million in needed reductions.
 
In short, we have managed to do more with less by maintaining spending while expanding learning opportunities for students. However, it has become increasingly difficult to retain and attract high-quality staff and meet the needs of our learners, as school funding has not kept pace with rising costs. 
The amount of state funding received by the District is not projected to be impacted by the operating referendum.   The operating referendum increases the total amount of funding the District is able to receive through a combination of state funding and property taxes.  State funding is determined first and the District is allowed to raise the remaining amount through property taxes.  While the funding formula is complex and impacted by many variables, our projections do not show a negative future impact.
Rapid growth in inflation and expenses are the primary drivers of projected funding shortfalls. While growth in enrollment would offer the District more revenue, more than 450 additional students would be required to provide the same amount of funding proposed for the operating referendum. The District believes it has an obligation at this time to right-size staffing to current enrollment, while leveraging referendum funding to meet the increasing costs of inflation.
Fund balance is the amount of money in the District’s budget between assets and liabilities. A common misconception is that fund balance is a cash account that corresponds to the District's bank balance. 
 
The District maintains a fund balance that is significantly below recommended levels for financial stability. Funding operations with this money is not only impossible due to limited funds, but it would also be financially shortsighted to deplete the fund balance to cover significant, ongoing, and recurring expenses.
 
fund balance chart
According the Village, the timing and residual value of tax increment districts (TIDs) cannot be estimated until their closure approaches.  The District did receive funds from a TID closure in early 2022.  These funds helped prevent the District from having to make additional budget reductions for the 2022-23 school year in order to stay compliant with our minimum fund balance policy. In order to maintain programs and operations, reliable and ongoing funding streams are needed.  While one time funds can help fund one-time expenses, they don't protect ongoing expenses like salaries, benefits, and building operations.
While the District received much-needed federal ESSER funds, these one-time dollars will be fully spent down by the end of next year. Even after leveraging these funds to the extent feasible, the District would still have a sizable operating gap. These one-time funds do not represent a long-term solution for the ongoing and increasing costs of meeting our students’ needs.
The District is committed to legislative advocacy and has taken/continues to take steps to make sure legislators know the need for support of public schools.  Specifically, we work with the Southeast Wisconsin School Alliance to stay abreast of state legislative action and coordinate our advocacy efforts in our region.  In the past year, we have contacted legislators and taken part in advocacy events to share our story.  At the March 14 Board meeting, the Board approved a resolution to send to all state legislators regarding our three key legislative priorities:  a per pupil spending increase of $1,510 over the biennium; sustainable categorical aid funding for mental health; and increasing the special education reimbursement to 60% to meet the needs of all students across our region.  We now will invite legislators to converse with us regarding these topics so we can share how these things impact our Shorewood community.
If increases in state funding exceed expectations, the District will leverage the opportunity to build healthier reserves and minimize the need for additional, future referendum funding.  At this time, even if the biennial budget includes 100% of the amount the Governor is proposing, this falls well short of the gap that has developed over the past several years.  Further, the additional benefit could be quickly minimized if these increases are followed by another period of flat funding.  The District will review forecasted financial needs with the Board annually and anticipates a more robust review after three years of referendum funding, should the operating referendum be approved by Shorewood voters.
Many different factors influence the cost of education on a per student basis.  Shorewood, compared to many other Districts, spends more per student.  Some of the factors driving this include:

Average salaries.  Compensation makes up the majority of all school budgets, so this is the major driver of cost per student.  Shorewood ranks in the top third for teacher salaries , which is the largest employee group.  

Benefits.  Provision of a competitive health insurance plan as well as retirement benefits adds to compensation cost.  Shorewood pays 87.5% of medical premiums for eligible staff.  In addition, all public school districts make a 6.8% contribution to each employee's retirement plan.  Shorewood also invests close to a half million dollars in additional retirement contributions each year.  

Class Sizes. Small class sizes require more staff. Shorewood has the 3rd lowest overall teacher:student ratio of all 31 school districts in the region. (Note that this comparison includes positions like reading specialists, but it does not include positions like deans or coaches).

Breadth of Offerings.  Program offerings like drama, music, orchestra, specialized AP and other academic courses require investment in a minimum staffing that is the same regardless of school size.  This means that, for each student in Shorewood, the cost per student of offering certain programs is larger than at a larger school that can offer these programs to a larger student population at the same overall cost, lowering the per student expense.

Operational Costs.  Costs of operation can vary greatly based on size of facilities and campuses, as well as size of the overall catchment area.  In Shorewood, we benefit from having minimal transportation needs and, compared to Districts outside of the Milwaukee area, fewer grounds to maintain.  On the other hand, maintaining our community facilities, two pools, and historic facilities adds expenses compared to schools with fewer facilities and/or newer properties.
The estimated increase in the school district's portion of the mill rate of $1.23 would occur in the 2023 tax year. It is important to note that the mill rate increase does not compound every year for the next five years. For example, the increase of the estimated $1.23 will be reflected in each of the five years, but will not compound to be $2.46 in the second year and $3.69 in the third year, etc.  Future mill rates will be determined by multiple factors, including the total value of property in the school district compared to the rest of the state, the state funding that is driven by this property value comparison, school district enrollment, levy amounts for debt service and community recreation,  district spending compared to the rest of the state, state-approved changes to the per pupil revenue limit, and other factors, many of which are outside the District's control.
 VOTER INFORMATION
 
Community members will vote on the referendum question on the general election date of Tuesday, April 4, 2023. 
Voters will see the following question on the ballot on Tuesday, April 4, 2023:
 
Shall the School District of Shorewood, Milwaukee County, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $5,500,000 per year beginning with the 2023-2024 school year and ending with the 2027-2028 school year, for non-recurring purposes consisting of operating and maintenance expenses, including salaries, benefits, and instructional and extra-curricular programming?
School district residents can vote at their regular polling location on Tuesday, April 4, 2023. You can find voting and registration information at https://myvote.wi.gov/.
Registered voters in Wisconsin may vote early by mail by requesting an absentee ballot. You can make your request by visiting https://myvote.wi.gov/en-us/Vote-Absentee-By-Mail.
 
Residents may also vote in-person before election day. For more information on this option, please visit https://myvote.wi.gov/en-us/Vote-Absentee-In-Person.