WHY REFERENDUMS?
The Lake Geneva Joint #1 School District and the Lake Geneva-Genoa City Union (Badger) High School District are not alone in the state of Wisconsin when it comes to facing financial challenges. According to Baird Financial, as of November 2023, over 85% of districts statewide have been forced to seek operational referendum support from their communities. This is due to several factors:
Outdated Funding System: Wisconsin schools operate under a state-imposed revenue limit, restricting the financial support they can receive from state general aid and local property taxes. The funding formula used to calculate the limit was created more than 30 years ago and is outdated. As a result, our districts and many districts statewide do not receive adequate funding for student programs and services.
Any change in the state funding formula is highly unlikely in the near future, according to the Wisconsin Department of Public Instruction.
Inadequate State Funding: Our districts face a funding shortfall that significantly hinders our ability to fully support programs and services. The funding approved by the state legislature has not kept pace with increasing costs and inflation over the past few years. In 2022 and 2023, the state's biennium budget resulted in NO increase in per-pupil funding. Additionally, one-time ESSER Grant Funds provided will be exhausted by June of 2024.
Growing Student Needs: The needs of our students have also increased significantly, particularly in the areas of special education, mental health, economically disadvantaged students, and multi-language learners. These represent essential services mandated by state and federal regulations for which the district receives inadequate funding.
Rising Operational Costs: Expenses related to wages and benefits, transportation, and heating and cooling school facilities are rising, along with various other costs beyond the district's control.
These factors have meant that Wisconsin school districts increasingly must turn to their local communities to fund their schools. This is the case in the Lake Geneva Joint #1 School District and the Lake Geneva-Genoa City Union (Badger) High School District, like many others statewide.