Investing in the Future
4/2/2024
At the January 8, 2024 meeting, the School Board voted to place an operational referendum question on the ballot for April 2, 2024. Below are some frequently asked questions and answers surrounding the referendum.
Frequently Asked Questions
What are the district’s financial needs?
Due to a number of factors that are outside our control, the School District of Jefferson is facing significant financial challenges, especially as we look to the future.
Like all Wisconsin districts, the SDOJ has a state-imposed revenue limit based on a formula established in 1993. This outdated formula—paired with minimal state aid for public schools in recent years—has led many school districts to seek local support through operational referendums.
The needs of our students have also increased significantly, particularly in the areas of special education and mental health. General expenses are also on the rise due to inflation and other factors.
This is a challenge we share with many school districts statewide. In fact, over the last decade, more than half of Wisconsin districts have received additional funding support from their communities through operational referendums.
How has the district addressed these challenges so far?
The district has already made significant cuts to balance the budget, including $400,000 alone (in continued right-sizing) over the past year. Without an operational referendum, the district will likely need to cut an additional $481,171 in 2024-25 and $296,848 in 2025-26, significantly affecting programs and services for students.
We worry that additional reductions will severely impact the quality education our community has come to know and expect from our schools.
Past reductions in staffing include:
- Technology Integrator position (spring 2021)
- Elementary position at East Elementary School (spring 2022)
- Elementary position at East Elementary School (spring 2023)
- Teacher position at Jefferson High School not filled after retirement (summer 2023)
- Elementary position at West Elementary School (fall 2023)
- School Psychologist position for the District (fall 2023)
Has the district used COVID relief funds to help balance the budget?
Yes, SDOJ has used one-time funds provided by the federal government during the pandemic to help fill the gap created by inadequate increases in school funding at the state level over the last several years. The federal funds will not be available after this school year, however. We now must work with our community to find a more sustainable solution to our financial needs.
Can the district use its fund balance to meet its financial needs?
While SDOJ currently maintains a healthy fund balance, it would be unwise to use this money to balance the budget. Relying too heavily on fund balance for this purpose makes borrowing more expensive and can harm the district’s credit rating. A more sustainable, long-term solution is necessary to balance the district’s budget now and in future school years.
What is a revenue limit?
Revenue limits were established for Wisconsin school districts in 1993 by the state legislature. A district’s revenue limit is made up of state aid and local taxes. As state aid to the district decreases, property taxes increase, and vice versa.
Until 2009, the state granted an inflationary increase to the revenue limit each year so that school districts could keep up with increasing costs. Over the past 15 years, however, the revenue limit has decreased or had only small increases.
To exceed the state-imposed revenue limit, a school district must seek approval from local voters via an operational referendum.
What is the proposed solution to the district’s financial challenges?
The SDOJ Board of Education has placed an operational referendum question for the ballot on Tuesday, April 2, 2024. If it’s approved, the district will be able to exceed its state-imposed revenue limit by $2.1 million per year over the next four years. The referendum would then expire unless voters approved a new measure.
The funding provided through this proposed referendum would help the district avoid significant cuts to programs, services, and staffing throughout our schools. Our top priorities would be:
Maintaining comprehensive instructional and co-curricular programs
Maintaining student support and mental health services
Maintaining safety and technology infrastructure &
Sustaining salary and benefits
Didn't we just pass a referendum in 2022
Yes! Thanks to the support of our electorate through the passage of a capital referendum, the School District of Jefferson was able to engage in long-term borrowing to upgrade building HVAC systems, add secure entrances to East and Sullivan, replace the roof at East, and upgrade restrooms at East, Sullivan, and West to ADA standards. In addition, we can take our Tech Ed and Ag programs into the 21st Century with remodeled learning spaces and an addition.
If it passes, the April 2024 operational referendum will allow the School Board to exceed the state-imposed revenue limit up to $2.1 million each year for four years in order to allow our District to maintain comprehensive instructional and co-curricular programs, student support and mental health services, safety and technology infrastructure, as well as sustain salary and benefits.
What is the Difference Between Capital and Operating Referenda?
In a capital referendum, funds are borrowed through bonds and paid back with interest. This type of referendum is most often used for building projects.
In an operating referendum, there are no interest payments because there are no borrowed funds. The amount is levied each year (pay as you go) and is more cost-efficient for the community.
Didn’t we also recently pass an operational referendum?
In 2018, voters approved a recurring operational referendum for the School District of Jefferson. Since that time, the district has continued to experience declining enrollment, losing about 250 students and $2 million in revenue limit authority as a result.
Additionally, base revenue from the state is down, and the historical mill rate for the district has dropped over the past several years. In fact, the school portion of residents’ property tax bills will be down this year.
These factors have led to the need for a new referendum to ensure Jefferson students continue to have access to the programs and opportunities they need to thrive.
How would an approved referendum affect property taxes?
With an approved referendum on April 2, residents would see a projected property tax increase of $1.13 for every $1,000 of assessed property value. If the referendum passes, the district’s total mill rate (or property tax rate) is projected to be $10.17, still the second-lowest rate in over a decade.
The chart below details SDOJ’s mill rate since 2013:
How will the School Levy Tax Credit affect the ultimate tax impact of an approved referendum?
The increased school levy tax credit (SLTC) will help offset some of the property tax impact of an approved referendum. You can find that amount listed on your tax bill.
The SLTC was increased in the 2023-2025 state biennium as a way for residents to save on taxes. This credit is given out by the Wisconsin Department of Revenue based on how much each area contributes to school taxes compared to the whole state over the past three years. The more a community pays in school taxes relative to the rest of the state, the higher the credit they receive.
This is one of the ways state legislators chose to support schools and communities in this biennium, providing an increase to give back to communities that contribute more to school funding by offering them credits on their taxes.
If approved by voters, will the operational referendum expire?
Yes. The Board of Education is asking voters to approve a four-year, non-recurring referendum. This means it would sunset at the end of the 2027-28 school year unless voters approve a new referendum before that time.
What is the exact question that will appear on the ballot?
Voters will see the following question on their ballots on Tuesday, April 2:
When is election day? Where can I vote?
Go to www.myvote.wi.gov to...
Find your polling place
See what’s on your ballot
Register to vote
Request your absentee ballot by mail
Must be returned to polling place by close of polls (8:00 p.m. on April 2)
Can I vote early?
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.
Learn More
CONTACT US
CHARLES URNESS, PH.D., SUPERINTENDENT
School District of Jefferson
Email: urnessc@sdoj.org
Phone: 920-675-1013
Website: sdoj.org
Facebook: https://www.facebook.com/SDofJ