School districts lay off staff, cut budgets after failed referendums

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MADISON, Wis. (CBS 58) -- Some school districts are having to make tough financial decisions due to the fallout of failed referendums.

Wisconsin once again saw an unprecedented amount of school referendums on the ballot in 2025, a total of 94 statewide. Voters approved 53, or 56.4% of them. That amounted to $950 million in new funding.

Nearly 40% of those ballot questions were retries that had previously been rejected, according to a new report by the Wisconsin Policy Forum. Under half of those, 17/36, were successful, leaving some districts scrambling.

It's led to deepening budget gaps, stalled construction projects, staff layoffs and consequences educators say can impact the quality of education.

Lake County District Superintendent Chad Schraufnagel recently had to cut six positions and reduce hours for part-time employees after voters rejected a $4 million referendum on April 1.

"It's very sad that we had to get to this," Schraufnagel said. "There are services we are not going to be able to offer. It's sad because it's nothing the kids did."

The referendum would have provided money for operational expenses over the next five years. Schraufnagel said they now have to make over $300,000 in cuts.

The challenges to passing these questions come as statewide polling shows 58% of voters believe reducing property taxes is more important than increasing spending on schools.

The February poll found 41% say school funding increases are most important, the lowest rating recorded since Marquette Law School first asked the question in 2013.

"I think voters are very cognizant of high inflation and that's really taken a hit on people's budget," said Ari Brown, senior research associate at the Wisconsin Policy Forum. "I think that's also why we're seeing some districts go to referendum one year, then try again in a few years."

Of the 10 largest referenda by dollar amount, only three passed: Oshkosh, Racine, and Port Washington-Saukville. Arrowhead, Kenosha, Sheboygan Falls, Beloit, and Fond du Lac were among the larger districts in which voters rejected referenda this spring, according to the report.

Kenosha Unified School District is facing a projected $19 million budget deficit after voters rejected a proposed $115 million referendum in February.

Superintendent Jeffery Weiss said without the funding boost, school security, technology upgrades, and staff will be on the chopping block.

"These are decisions that I shouldn't be making," Weiss said.

He's among many school leaders calling on lawmakers to invest more money in the 2025-2027 state budget to help fill the void.

Fond du Lac School District is also facing major cuts after their operational referendum failed.

The district will have to reduce expenses by $7.5 million next year, which could mean cutting between 80 and 100 positions.

School Leaders Ask Lawmakers for Help

Gov. Tony Evers' proposed budget would significantly increase K-12 spending by $3.15 billion.

That includes $1.1 billion to support the state's reimbursement rate for special education funding. The rate would increase from 33% to 60% under his plan.

"The state has the power in their budget making process to put us in a much better position…the reimbursement rate increase would make us whole," Weiss said.

Lawmakers on the powerful Joint Finance Committee have begun a series of budget listening tours across the state. In the coming weeks, committee members will begin drafting the next two-year spending plan for the state.

Republicans, who control JFC, have said they plan to reject Evers' budget proposal and start from scratch as they've done in the past.

"We need lawmakers to understand the circumstances we are facing," Schraufnagel said. "I think that it would be a travesty if this school would have to close."

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