What are the financial challenges facing the district?
Based on conservative assumptions, the district is projecting a deficit of $3.7 million for the 2025-26 school year. This takes into account the state-level funding recently granted to public school districts as part of the Wisconsin 2023-25 state biennial budget.
Why is the district facing these financial challenges?
Like most Wisconsin school districts, we are dealing with the challenges of rising expenses, an outdated and inequitable state school funding formula, and a lack of state aid to public schools in recent years.
In Wisconsin, public schools are primarily funded by a combination of state aid and local property taxes. Every district also has a revenue limit that caps the amount of money it can receive through state aid and local property taxes. The revenue limit was set back in 1993 and has not kept pace with increasing costs and inflation.
Our revenue limit authority is controlled by two things: resident enrollment and state-approved adjustments.
Additionally, there has been a lack of funding to public schools provided through the state’s funding formula. If revenues had kept pace with inflation since 2009, the Wausau School District would receive $3,300 more per pupil for the 2024-25 school year.
If the Wisconsin legislature does not provide more state funding for public schools, the Wausau School District will need to seek additional local funding to maintain the high-quality educational experience that our families and community value.
What actions has the district taken to close its budget gap?
The Wausau School District has worked diligently to control spending, make the most of our existing funds, and improve educational programming. This has included taking the following actions:
- Reducing more than 25 full-time equivalent (FTE) positions in 2024
- Implementing salary increases below the Consumer Price Index
- Keeping budgets static for things like buildings, departments, and capital maintenances
- Leveraging available federal ESSER funding, which has now expired
- Reducing our overall footprint by closing four elementary schools (and repurposing one)
Has the district sought the input of the community during this process?
Yes, the district and board have sought the input and feedback of our community as we’ve worked to address our financial challenges. In spring 2024, we conducted a community-wide survey to share information on the district’s needs and seek the input of our community. A total of 1,959 people completed the survey.
The district and board gained valuable feedback through the survey. A majority of respondents felt that the district’s most urgent financial needs must be addressed now. A majority also indicated they would prefer a non-recurring operational referendum be presented to voters.
What is the proposed solution to the district’s financial challenges?
On Tuesday, April 1, 2025, our community will vote on a proposed five-year, nonrecurring operational referendum. If it is approved by voters, the Wausau School District will be able to raise its revenue limit by $8 million per year, through the 2029-30 school year.
If the referendum is approved, how would the district use these funds?
An approved operational referendum would allow the district to:
- Mitigate our budget deficit
- Maintain and enhance student programming
- Attract and retain staff
- Address ongoing maintenance needs (including roofing, HVAC/air conditioning, and upgrades to mass communication, cameras, and energy efficiency)
The referendum would close the district’s current projected $3.7 million budget gap, preserving critical programs, services, and opportunities for our students. This funding is necessary to maintain an exceptional educational experience for the students we serve.
How would an approved referendum affect property taxes?
An approved referendum would have no expected impact on the property tax rate for district residents.
This is possible due to the district restructuring and prepaying debt to help keep the tax rate stable over the long term and minimize the tax impact of a referendum. Taking these measures has provided room for the board to propose an operational referendum without an associated property tax increase.
It’s also worth noting that there has been a 19% reduction in the district’s mill rate over the last 10 years as we continue to make the most of the money taxpayers invest in our schools.
What happens if the referendum is not approved?
If the referendum is not approved, the district and board will need to make difficult decisions to balance our budget. This will have a negative impact on our students, staff, families, and community.
While no firm decisions have been made, budget reductions would likely involve continued staff reductions, the deferment of necessary maintenance projects, the reduction of funding for activities and athletics, the elimination of non-core courses, and salary freezes.
Would the property tax rate decrease if the referendum is not approved?
If the referendum is not approved, the property tax rate may decrease. Alternatively, the Board of Education may continue to pay off additional debt.
However, the district would also continue to face a projected $3.7 million budget deficit for the 2025-26 school year alone without an approved operational referendum.
Didn’t voters already approve a referendum in 2022?
In April 2022, our community approved an $119.8 million capital referendum to fund key facility improvements. These projects included remodeling and additions at our two middle and two high school buildings, the construction of additions at Riverview, South Mountain, and Stettin elementary schools, and the construction of a new School Forest Environmental Learning Center.
These improvements have been critical to ensuring our students have access to quality learning environments that give them the resources and opportunities they need to thrive well after graduation.
What’s the difference between an operational referendum and a capital referendum?
In Wisconsin, school boards can ask voters to approve two types of referendums: an operational referendum and a capital (or bond) referendum.
An operational referendum is used to fund the ongoing day-to-day expenses of running a school district. This can include salaries and benefits for teachers and staff, utilities, classroom supplies, transportation, and other operating costs. This is the proposed measure on the ballot in April 2025.
A capital referendum is used to fund major building projects and improvements. This can include the construction of new school buildings, significant renovations or additions to existing facilities, purchasing land, or major equipment expenditures. The community approved a capital referendum for the Wausau School District in 2022.
How common are operational referendums in Wisconsin?
The Wausau School District is not alone among its peers statewide when it comes to facing financial challenges. As such, operational referendums have become increasingly common across Wisconsin.
In November 2024, 79 Wisconsin school districts, or 19% of all school districts statewide, asked their communities to raise their revenue limits through an operational referendum. Over the last decade, more than half of the school districts in Wisconsin have received approval to raise their revenue limits through successful operational referendums.
Based on state funding formulas, an operational referendum is the only option to prevent additional cuts to programming and opportunities for students.
What happens if the state increases funding for public schools?
It is unclear how much money the state will allocate for schools after this school year. While Wisconsin currently has a $3.13 billion budget surplus, past surplus funds have not been directed to public education.
Additionally, the Wisconsin Department of Public Instruction does not anticipate any changes to the state’s school funding formula in the near future. The Wausau School District must move forward in its planning assuming that there will be no substantial increases to state funding.
If the legislature does increase funding in a significant way, the Board of Education would have the option of levying for less than the operational referendum amount in future years. This would reduce the impact on property taxpayers.
When is election day?
Election day is Tuesday, April 1, 2025.
Where can I cast my ballot on election day?
District residents can find their polling location for Tuesday, April 1, by searching with their home address.
Can I vote absentee in this election?
Yes, voters may request that an absentee ballot be mailed to them for any reason. However, you must be registered before you can request an absentee ballot.
If you are registered, you can request an absentee ballot by visiting https://myvote.wi.gov/en-us/VoteAbsentee. Note that you must provide a photo ID with your absentee ballot request.
When is the deadline to register to vote?
Eligible voters can register up to election day, and can even register at the polls.
The deadline to register by mail is March 12, 2025. If you miss this deadline, you can still register in person at your municipal clerk’s office until 5:00 p.m. on March 28, or at your polling place on Election Day.
To learn more about registering to vote, visit https://myvote.wi.gov/register-To-Vote.
What is the exact question that will appear on the ballot?
Voters will see the following question on their ballots on Tuesday, April 1:
“Shall the Wausau School District, Marathon County, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $8,000,000 per year for five years, beginning with the 2025-2026 school year and ending with the 2029-2030 school year, for non-recurring purposes consisting of operational expenses and capital maintenance and improvements?”