Downsizing generally leads to a reduction in costs, but that is often not the case for school districts. Across Wisconsin, many school districts are faced with declining enrollment, but costs aren’t decreasing. In addition, not only is enrollment declining, inflation is impacting school districts just like it is impacting your family. This combination of factors is why so many districts have gone to referendum to ask the voters for more money. I am very sympathetic to the situation facing our school districts and wanted to explain why there are so many school referendums.

Under the Wisconsin school funding formula, the number of students in a district determines how much money a school district is able to generate and spend through a combination of state and local funding. Think of school funding like a pie. The size of the pie, a district’s total budget, is largely determined by enrollment. How the pie is sliced is determined by the amount of state aid a district receives and how much local property taxpayers contribute.

As the number of students in a district increases, the size of the pie increases. However, as enrollment decreases, the size of the pie also decreases. For this reason, simply sending more money to schools through the school funding formula does not solve the fundamental problem. If the state sends more money, the size of the slices of the pie change, but the overall size of the pie does not.

Currently, on average, the state funds about 69% of the pie while local property taxpayers in each district fund the other 31% of the pie. The long term goal of the state has been to fund 2/3rds of public education. We are exceeding that goal. The size of the pie and how the pie is sliced will be different for each individual school district. In the 17th Senate District, the range of state funding is 55% to 86%.

Despite the size of the pie getting smaller for many districts, district overhead costs remain the same or, with inflation, increase. School districts still need the same number of teachers, the same number of buses, and the lights must be kept on in the same number of buildings.

Under current law, asking local voters if they want to maintain current operations for fewer kids through referendums is the only way to increase school district budgets when enrollment is declining. This is why so many districts have gone to referendum. Districts are trying to increase the size of the pie even as enrollment is declining.

In the most recent state budget, Governor Tony Evers and the legislature agreed to increase the amount that school districts are able to spend on each student by $325 per year for the next two years. The state funded this increase and schools received $1.2 billion in new, spendable resources. This was the largest increase in history.

Using his powerful veto pen, Governor Evers changed the law to give school districts the capacity to spend an additional $325 per student each year for the next 400 years. This veto is currently the subject of a Wisconsin Supreme Court Case. We do not know when a ruling will be released or what it will say.

In summary, more money to education from the state does not mean school districts are actually receiving more money. Additional school funding through the school funding formula changes the size of the slices of the pie, not the pie itself. The reality facing many of our districts is declining enrollment combined with inflation. Going to referendum is the only way to increase school district budgets when enrollment is declining and inflation is increasing costs.

Since the legislative session ended in the spring, I have met with many of our school district administrators to discuss what they are seeing in their communities, and I will continue to do so. I understand the challenges that our local school districts are facing. I promise to continue to advocate for our local school districts in Madison and work to find a sustainable solution to this problem going forward.

As always, if you need assistance with any state-related matters, please call our 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.