Referendum Information

The Board unanimously approved an operational funding question for the April 4 ballot. The tax impact of the proposed referendum does not appear on the ballot. The ballot question will read: 

Shall the Monona Grove School District, Dane County, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $6,000,000 for the 2023-2024 school year; by an additional $1,600,000 (for a total of $7,600,000) for the 2024-2025 school year; and by an additional $6,200,000 (for a total of $13,800,000) for the 2025-2026 school year and thereafter, for recurring purposes consisting of maintaining current programs and staff and operational expenses.

 [ ] Yes 

 [ ] No

School funding remains a topic of great debate, complexity, and without a viable, long-term solution. Legislators have yet to resolve the fundamental problem with school funding. For the last two years, schools across Wisconsin received a 0% increase in per pupil revenue. 

Meanwhile, our operating costs (the amount of money it takes to maintain our current programs and staff) are increasing at an increasingly rapid rate. According to the Wisconsin Policy Forum, between the 2009-10 and 2018-19 school years, inflation rose 17%. At the same time, the average state-wide revenue limit grew by only 6%.   

In addition, the cost to retain and attract high-quality staff continues to grow. Wages have been tied to inflationary increases and Monona Grove wages are below the Dane County average. It is not possible to fully align our teacher salaries with the private sector or with our K-12 peers in Dane County, but this operational referendum may provide an opportunity to offer more competitive pay.  

This is the reality of how deeply state funding affects our budget. Forty-two percent of our budget comes from the state. Our costs to provide the same programming continue to increase but when we receive no new spendable state funding, it leads to a significant structural budget deficit. We have received no increase in per pupil funding from the state for two years. In large part, this is what fuels our budget deficit. 

For many communities, including Monona Grove, an operating referendum offers a solution to manage funding gaps while keeping 100% of referendum tax dollars in the district and aligned with community expectations for their local schools. We are not alone. Seven of the 16 school districts in Dane County passed an operational referendum in November 2022, another two (including MG) will vote on an operational referendum this spring.

Because the money from this referendum would be used toward maintaining ongoing costs like operations and compensation (nearly 70% of our budget goes toward staffing), a recurring referendum would provide more consistency and stability not only for taxpayers in our community but also for us as a district. In prior years we have used non-recurring referenda to offset budget deficits, with the hope that the state would prioritize school funding in future years. However, Wisconsin’s spending on education is now below the national average (5.6% below the national average in 2020, according to the Wisconsin Policy Forum). Wisconsin’s education spending ranked 25th among the 50 states in 2020, down from 11th in 2002. The caps on school revenues in the 2021-23 state budget likely led to a further slide in that ranking with some estimates putting Wisconsin near 30th in the nation in school funding. 

Because we will be using some of our fund balance (similar to a savings account) to offset the deficit and because we will have a previously passed non-recurring referendum expire, the amount gradually increases from: 

• $6,000,000 for the 2023-2024 school year; 
• by an additional $1,600,000 (for a total of $7,600,000) for the 2024-2025 school year; 
• and by an additional $2,500,000 for the 2025-2026 school year and thereafter. The 2020 non-recurring referendum of $3,700,000 expires at this point, and would be rolled into the total. 

This money will be used to maintain current programs and staff and operational expenses. We are a right-sized staff (nearly 70% of our budget goes toward compensation): our class sizes are optimized, we have mental health support and programs in every school, as well as health team members in every school. Our students learn in a safe environment and are deeply cared for, reflecting the values of our community. 

We have made changes to our budget in order to maximize savings and lower our costs. For example, we have made changes for the last two years to our health insurance benefits resulting in significant savings; the solar panels recently installed at Monona Grove High School are just the latest in our sustainability efforts in order to control utility costs. The solar panels will begin generating ongoing savings on our utility costs within the first year of their operation. 

We are also using part of our fund balance (similar to a savings account) to offset the deficit. Thanks to our reputation for outstanding teachers and staff, we continue to see enrollment growth (37 new resident students since the beginning of this school year alone). Full increases in state funding from enrollment growth take three years due to the funding formula, but we are in a good position to continue our steady and stable growth.

The consequence of waiting or failure to pass an operating referendum will require immediate action. If the referendum is not approved on April 4, discussions will begin in partnership with stakeholders and those most directly impacted—teachers and parents. Based on current budget projections, if operational funds are not approved, a reduction of approximately $6 million will be required in the first year alone.

Districts across the state are doing a variety of things to address this challenge, including: reducing services / staff, increasing class sizes, using one-time funds to pay for ongoing operations, and seeking funds through an operational referendum. In the last 5 years, 79 school districts across Wisconsin have held a recurring referendum for operating purposes; 41 of those were held in the last two years alone. In November 2022, 7 of the 16 school districts in Dane County held and passed operational referendums (5 of them recurring).

Voters have previously approved operating referenda, but they were “non-recurring.” This means they provided only temporary funding. In addition, uncontrollable costs (utilities, etc.) and inflation have both increased at a faster pace than state revenue.

Open enrollment students come into our District in two ways: 1) students/families who move out of Monona Grove School District and continue on in our schools, and 2) students/families who live outside the District and have not previously been MG students. We monitor open enrollment very carefully. As of 2021-22, open enrollment students make up about 10% of our total enrollment; 90% of our students are current residents.

We are required by state law to take these students when there is room in our classrooms based on our Board-determined class size goals. For example, if the Board's class size goal was 20 students in a kindergarten section and there is a classroom with only 19 resident students, we would be required to put an open enrollment student in that classroom. The exception to this is if the building those classrooms are in is already at total capacity. We also do not have to (and we do not) accept open enrollment students if it would mean hiring additional teachers.

Finally, open enrollment students are a source of revenue for the District rather than a drain on our resources. The resident school district that a student comes from pays an annual amount to the non-resident district; the amount is set by the state. We are fortunate to be a growing District in terms of resident students as well as a District where families want to send their children; we take this responsibility very seriously.

It helps to think of the mill rate as the unit of tax. The mill rate is the total levy divided by the total property value. Rather than dividing the levy equally by the number of taxpayers, the levy is distributed equitably across property values by the unit rate--so an individual property taxpayer who owns a $200,000 home pays the same rate of tax ($10.31 per $1,000 would be $2,062) as a commercial property taxpayer who owns a $1,000,000 business property ($10,310.)

The mill rate for 2020-21 was $12.47 per $1,000 of equalized property value (Dec. 2020 tax bill). In 2021-22 it was $11.52 (Dec. 2021 tax bill); it is $10.31 for 2022-23 (Dec. 2022 tax bill). If the referendum is approved, the mill rate in 2023-24 is projected to be $11.73 (Dec. 2023 tax bill; projection as of publication). A number of factors have an effect on these projections, including population growth and the state equalization aid formula.

School funding is complex and based on many factors. In the simplest terms: 

The state sets the amount of state aid it will provide to schools and sets the revenue limit. 

When it is known how much state aid will be provided (and, therefore, how much the state determines local property taxpayers can pay), districts set their tax levy. This levy amount is sent to all municipalities within the district for distribution to property taxpayers. The municipality equitably distributes the levy across property taxpayers, using the unit of tax--the mill rate.

Visit myvote.wi.gov for comprehensive election information, voter registration, obtaining absentee ballots, and the most current voter information. Please visit mymonona.com, village.cottage-grove.wi.us and tn.cottagegrove.wi.gov for local information, polling hours, and more.