GOP lawmakers propose limits on school referendum to reduce burden on taxpayers
MADISON, Wis. (CBS 58) --Republican lawmakers are proposing limits on ballot measures that ask voters to raise their property taxes to fund school districts.
School districts often turn to taxpayers to help close budget shortfalls or pay for improvements through referendums. Some school funding referendums are temporary, others are recurring without expiration dates.
A new proposal co-authored by Rep. Cindi Duchow (R-Town of Delafield) and Sen. Chris Kapenga (R-Delafield) would require any school funding increases through referendum be limited to four years.
Duchow believes capping referendums would improve fiscal responsibility and reduce the burden on taxpayers.
Last spring, voters approved a $252 million referendum for Milwaukee Public Schools that taxpayers will pay over four-year increments with no expiration date.
"Milwaukee residents are now strapped with that huge dollar amount that passed by 1,700 votes and property taxes went up," said Duchow. "I think it's not fair… and it just goes on."
On Feb. 18, Kenosha Unified School District will ask voters to approve a $115 million referendum to help close an estimated $19 million budget shortfall.
If approved, the district will be able to increase its revenue limit by $23 million per year through the 2029-30 school year.
It comes as voters approved a record number of referenda to fund local schools in 2024, totaling $4.4 billion in new funding, according to data by the Wisconsin Policy Forum.
The study found that school districts asked voters to sign off on a record 241 referenda last year, with 169 ballot measures approved by voters. That equals more than a third of the state's 421 public school districts.
The Wisconsin Policy Forum attributed the rise of referenda to the rate of inflation outpacing increases in the state's per pupil revenue limits, which restrict how much money schools can raise through property taxes and state aid.
This year, 94 school districts approved ballot measures.
"It really is a statewide trend we are seeing," said Ari Brown, a researcher at the Wisconsin Policy Forum. " I don't expect those to mitigate anytime soon, especially because inflation is still being felt by school districts."
However, the approval rate for school referendums is seeing a downward trend. Brown said this raises questions about voters' willingness to increase their tax bills and the current state funding formula.
The use of referendums to fund school districts has long been a subject of controversy. For years, districts have asked lawmakers for per pupil increases. Republican lawmakers are reluctant because the move could result in higher property taxes.
In the 2023-2025 state budget, Gov. Tony Evers used his partial veto to extend per pupil increases over the next 400 years.
The move is currently the center of a lawsuit and before the state Supreme Court. Depending on the outcome, Evers' veto could play a pivotal role in how lawmakers craft the next state budget.
Local governments are also asking voters to approve ballot measures to fund public safety even after a historic law that gave more money to municipalities passed in 2023, known as the shared revenue deal.
The law transformed how the state sends money to local governments, giving all municipalities at least a 20% increase to help fund police, fire and other essential services.
Still, dozens of municipalities are asking voters for help with 31 referendums proposed to increase property tax levies last year.
"The bottom line is shared revenue never was or will be where local governments get the majority of their money," said Jerry Deschane, the executive director of the League of Wisconsin Municipalities.
Another GOP bill would require a referendum on the ballot to list the financial impact on taxpayers.
Rep. Scott Allen (R-Waukesha) said the proposal would offer a "good faith estimate" of how much property taxes would increase tied to a particular referendum.
The bill was introduced last year but never received a vote on the floor.