What does the ballot language say?
Shall the River Ridge School District, Grant County Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $1,250,000 for the 2024-2025 school year, and by additional $250,000 a year in each of the following years, in the 2025-2026 school year (for a total of $1,500,000), in the 2026-2027 school year (for a total of $1,750,000) and in the 2027-2028 school year (for a total of $2,000,000 and to remain at that amount thereafter) for recurring purposes consisting of operational costs to maintain instructional programs, staffing, technology and facilities management?
Why is the River Ridge School District having a referendum?
The school district has experienced significant inflationary increases to its operating expenses over the past two years which were primarily supported by federal grants. Those grants are no longer available to the school district beginning with the 2024-25 budget. State revenue limit laws require the school district to ask voters for permission to generate additional revenue through referendum to exceed the revenue limit. The school district's last operational referendum approved by voters was held February 18, 2014, which allowed the school district to exceed the revenue limit by $350,000 each year. However, the current year's revenue limit, which includes the 2014 Referendum allows the district to receive only $250,000 more revenue than it allowed eight years ago. The 2024 Operational Referendum would provide funds to pay operating costs to maintain instructional programs, staffing, technology and facilities management.
What is a "revenue limit"?
The revenue limit is a state law (Section 121.91, Wisconsin school districts beginning in 1993. It limits the amount of revenues a school district receives from local property taxes and state equalization aid. The revenue limit is calculated each year using the school district's September resident enrollment count. If a school district's resident enrollment declines or increases, the revenue allowed under the limit also declines or increases. The law requires the school district to ask voter permission, through an operational referendum, to increase revenues by exceeding the revenue limit and the levy of taxes.
What does "recurring" mean?
The word "recurring" means ongoing and does not expire. The tax levy revenue to support the school district's operating budget from the 2024 Operational Referendum would be authorized to begin with the next budget year and would not expire.
Does the school district receive aid from the state?
The River Ridge School District receives state equalization aid for eligible operating and debt service expenses under a three-tiered formula designed to provide property tax relief. The state shared in the current budget year's expenses by providing state aid equal to 69% of those costs. State aid is determined each year under a formula that considers a school district's operating and debt service expenses, student enrollment and property valuation. The state notifies the school district of how much of the allowable revenue (calculated by the revenue limit formula) is coming from the state, and the remainder comes from local property taxes. State aid is used for property tax relief and not as additional revenue for a school district. If a district receives less aid, taxes go up. If it receives more aid, taxes go down. Neither scenario gives the district more revenue.
If the 2024 Operational Referendum is approved, under the 2023-2024 budget year aid formula, the state would share in funding these costs in third tier of the formula at 36%. State aid is received the year after the operating expense occurs and helps offset the impact on the tax levy. The state aid formula is subject to legislative changes every two years as part of the state's biennial budget and is not guaranteed.
How will the revenue from the 2024 Referendum be used by the school district?
The 2024 Operational Referendum would provide revenue for operating costs to:
1. Fund the inflationary cost impact on the school district's operating budget - The monthly Consumer Price Index for All Urban Consumers (CPI-U) as reported by the U.S. Bureau of Labor Statistics from July 2021 through December 2023 ranged from 3% to 9.1%
2. Maintain - Programs such as the full days for 4K , early childhood program and After-Hours Program. Class sizes under 24 for elementary and middle school and under 24 for high school core classes. Middle school and high school course offerings, high school advance placement courses, intra-curricular, extra-curricular, and sporting options.
3. Technology - One-to-one devices for students; technology devices for staff.
4. District-wide self-funded health insurance.
5. Contributions to the district's facilities building and maintenance fund.
6. Rebuild and maintain a fiscally responsible general fund balance.
Each school year, administrators and the school board will review the district's operating expenses and the amount of revenue available to pay them, including the 2024 Operational Referendum revenue. If state revenue limit laws or funding formulas change from year to year, the district cannot increase the amounts specified in the 2024 Operational Referendum revenues, but is allowed to decrease the amount.
How will the 2024 Operational Referendum affect the district's financial position?
The district has always strived to maintain a fiscally responsible general fund balance to secure the district's financial position and reduce the need for cash flow borrowing. The school district's self-funded health insurance plan requires the district to maintain a portion of the fund balance as a reserve to pay claims. For the 2023-2024 budget, the district used approximately $1.2 million of fund balance to pay operating expenses including claims. Approval of the 2024 Operational Referendum will allow the district to stabilize fund balance and maintain a strong level of financial flexibility. If the 2024 Operational Referendum is not approved, the district's financial position would be weakened, which increases the amount of cash flow borrowing needed to pay operating expenses in a timely manner.
Fund balance is not like a "savings account" whereby money stays in an account and only used if a withdrawal is made to pay a bill. Fund balance is a working account that is used daily to pay the district's operating expenses when other revenues, like property taxes, state or federal aid, have not been received. It behaves like the school district's internal line of credit. If a school district does not have enough fund balance to cover its operating expenses each month, the district needs to short-term borrow to pay its expenses. Short-term borrowing is repaid, with interest, until the district receives its revenue.
What happens if the 2024 Referendum does not pass?
If the 2024 Operational Referendum does not pass, the school board would have one more opportunity to go back to referendum in August or November of 2024 with another operational referendum. Other options available to the district would include prioritizing operating budget reductions to programs and staffing; consider larger class sizes at all schools; reduce class offerings impacting student academic opportunities; manage intra-curricular and extra-curricular options for students; cannot replace technology; manage both positive and negative impacts to self-funded health insurance on the general fund balance; no contributions to facilities building and maintenance fund; or a combination of all these options. If the 2024 Operational Referendum does not pass, it would challenge the District's ability to retain and attract staffing.
Are other Wisconsin school districts holding operational referendums?
There are 62 operational referendums held at the regular elections in February and April 2024. Between 2012 and 2023, there were 642 operational referendums.
Below are April 2024 Operational Referendums in Nearby School Districts:
Cuba City School District De Soto Area School District
Highland School District Kickapoo Area School District
Platteville School District Potosi School District
Southwestern Wisconsin School District Westby Area School District
When and where do I vote?
On April 2, 2024, all polling places open at 7:00 A.M. and close at 8:00 P.M. All questions concerning your polling place should be directed to the municipal clerk in your town or village. You can register to vote, check your voter registration status, find your polling place, see your sample ballot and request an absentee ballot at the MY VOTE WISCONSIN WEBSITE - https://myvote.wi.gov/
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