The third Friday in September is a significant day for school districts throughout the state. This is one of the two days each year when all the public-school districts in the state take an official count of students and report it to the Wisconsin Department of Public Instruction (DPI). This official count is key, because it directly impacts the size of each school’s budget.

The results of this count were recently shared with me, and I am always interested to see the results. What I read did not surprise me. Some of the schools in the 17th Senate District have gained students, but the vast majority are losing students. This follows a statewide trend. This year, three-quarters of Wisconsin schools have fewer kids than they did last year. Statewide, the enrollment count declined by 13,600 students, or almost 2%. This decline has been happening for a decade, with the trend beginning in the 2013-14 school year.

Enrollment is the single most important factor in a school district’s budget. Under Wisconsin law, the number of students in a district determines how much money that district can spend. When a school district’s enrollment steadily declines, so does its budget. While the state’s funding formula uses a three-year rolling average and includes temporary measures to soften sudden losses, a consistent decline in enrollment ultimately results in a smaller budget. According to the non-partisan Legislative Fiscal Bureau (LFB), when a school district loses five students, it will eventually see a reduction of around $60,000 (though the exact amount varies by district).

The challenge for school districts is that many of their costs are fixed, while expenses such as staff salaries, health insurance, and utility costs continue to rise. As a result, as declining enrollment leads to smaller budgets, districts face increasing financial pressure from inflation. Determining how to respond to rising costs while revenue is shrinking is a difficult task for local school boards and administrators.

There is no sugarcoating it. In the 17th Senate District, and across Wisconsin, we face significant demographic challenges. The data shows that the situation is not improving anytime soon. This will affect our K-12 school districts, the University of Wisconsin System, and businesses across the state.

This good news is that we have the ability to project this kind of data into the future. In many cases, private-sector businesses have little certainty about what the next year will bring, let alone a decade ahead. The trend line on our school enrollment speaks loud and clear. This will have an impact on our state. Policymakers, school districts, university officials, and businesses must keep this data in mind as they make decisions on the future.

If you need assistance with any state-related matters, please call my team at the State Capitol – 608-266-0703 – or email me – Sen.Marklein@legis.wisconsin.gov. My team is ready and willing to help navigate your state government, clear obstacles, and receive your input.