Operational referenda are the vehicles that allow school districts to increase their amount of spending to meet rising operational and infrastructure costs. If a school district needs additional revenue to maintain or increase its operational needs, such as staffing,  equipment or maintenance then it can ask the tax payers of the district to approve the spending of additional dollars to support the schools by agreeing to raise the property taxes of the district. If the referendum passes then the district can increase its spending by the amount of money approved by the taxpayers.  If the referendum fails then the district cannot access these additional funds.

Over 86% of all school districts in the state of Wisconsin have utilized an operational referendum.  Operational referenda are the “new normal” in terms of raising the revenue needed.   

BASD has never utilized an operational referendum to date.

A non-recurring operational referendum provides for a temporary increase in the revenue limit (temporary increase for spending).  A recurring operational referendum provides for an ongoing or permanent increase in the revenue limit.

The April 1, 2025 operational referendum is non-recurring for 3 years.  That means the district is asking to increase local taxes (above the revenue limit) for three years only at this time.  

The three tax bill years that would involve this operational referendum would be the 2025, 2026, and 2027 tax bill years.  Then, the school district will most likely need to come back to the community to ask for another operational referendum.

Schools get their revenue funding from three basic sources: 

1) Local property tax 

2) State aid 

3) Federal aid 

Based on data for the 2024-2025 school year, the Burlington Area School District gets about 46% of their revenue from property taxes, 51% of their revenue from the State of Wisconsin in a combination of   general and categorical aids and 3% from the federal government. The State figures its revenue portion to schools based on an equalization aid formula. Simply put this means that they weigh the Burlington Area School District against all of the other school districts in the State to determine its relative ability to pay.  the normal costs of operating a school. School districts that have a very high amount of property wealth are given less money in the equalization aid formula  than  those districts that have less property wealth.  The Burlington Area School District is considered to have sufficient  property wealth therefore the state  expects more dollars to come from local taxpayers within our community.  

Though these are the three basic sources of revenue, what a school district gets to spend each year is based on a district’s revenue cap. Revenue caps were put in place during the 1993-1994 school year. These caps determine the maximum amount of money that a district can spend on education. The caps are highly influenced by student enrollment. As a school district gains more students, the amount of money that it is allowed to spend goes up. However, if school enrollment goes down then this has a negative impact on the amount of money that a district can spend.

Burlington is facing a deficit because the state share of revenue has not kept up with inflation and rising cost of the state and federal government mandated special education programming.  Despite special education services costing more each year the state and federal government only assist with ⅓ of the total cost for special education. By not increasing aid proportional to inflation and escalating special education costs the state is forcing local communities to use operational referendums to increase the revenue they need to maintain their educational programs and services.

The district will be asking for a non-recurring 3 year operational referendum for the amount of $4.6 M per year.  This amount is not added permanently to the district's budget.  It only adds to each of these 3 years individually.  

1. $4.6M for 2025-2026 school year (2025 tax bill)

2. $4.6M for 2026-2027 school year (2026 tax bill) 

3. $4.6M for 2027-2028 school year (2027 tax bill)

Per $100,000 property value the average tax projection increase would be $9.00 per year.  We use this number as it is the easiest way to calculate your own tax projection increase.  Multiple the dollar amount per $100,000 of value to know your estimated increase per year.  

Example:  

1. The average home value in Burlington is $300,000.  

2. Take $9.00 x 3 = $27.00 

3. This is the estimated yearly increase for a $300,000 property value.

Another Example:  

1. Let’s say your home value is $450,000 

2. Take $9.00 x 4.5 = $40.50 

3. So, $40.50 is the estimated yearly tax increase for a $450,000 property value.

The district has been fiscally responsible as is evident in that this is the first time the district is asking for an operational referendum.  Over 86% of all districts have already asked for at least one operational referendum (some districts have asked 3-4 times already) whereas BASD has never secured an operational referendum to assist with operating the district.  

Secondly, from 2005 to 2015 the district under levied giving $21 million dollars back to local taxpayers as the district and board did not want to take funds from local taxpayers if the district was not in need of those funds.  Now the district is stating to the community, now funds are needed.  

The district has been making reductions to expenses and working to generate revenue overtime.  At this point in time, any additional significant reductions will negatively impact student growth and achievement. 

With the failure of the February 2024 operational referendum the district made the following $5,000,000 in cuts / adjustments:  

Reduced:

1. Staff by 39 employees

• We projected a reduction of 35-40 employees going into the 2024-2025 school year to assist with closing the $5,000,000 deficit.  We reduced staffing by 39 total employees for the start of the 2024-2025 school year.  

• Over the past three years we have reduced staffing by a total of 54 employees.  

2. Fund Balance

• A district's fund balance is like a checking account.  It is the fund that takes care of paying our expenses throughout the school year.  There are times when we do not have enough money in our fund balance to pay our bills, so we have to short term borrow.  This leads to additional interest rate costs and affects our bond rating as a system for future needs.  

3. Building & Department budgets

• We reduced budgets by $750,000 for the start of the 2024-2025 school year.  This impacts our schools and classrooms in terms of having the materials and resources they need to support students.  

Increased:

1. Class sizes

• 4K-5 = Within grades 4K-5 our average class size was 22.  At the start of the 2024-2025 school year the average class size increased to 26.0.  Some classes are as high as 31 within grades 4K-5.  

• 6-12 = From 24.8 to 28.0 Within grades 6-12 our average class size was 24.8.  At the start of the 2024-2025 school year the average class size increased to 28.0.  Some classes are as high as 33 students per class within grades 6-12.  

2. Community use fees

• We needed to adjust our fee structure in order to offset our expenses with revenue.  Therefore, we increased the amount charged for using our facilities across the district.  

3. Extracurricular fees

• We needed to adjust our fee structure in order to offset our expenses with revenue.  Therefore, we increased the students are charged to participate in extracurricular activities (athletics, fine arts, and clubs).  

4. Student registration fees

• We needed to adjust our registration fees for all students across the district to assist with closing the gap between revenues and expenses.  

Closed Lyons Center Elementary School

• The district and board made the difficult decision to close Lyons Center Elementary School.  This allowed the district to reduce staffing and cut down on building expenses.  

Redistricted (4K-4) & changed grade configuration

1. Dyer now houses all traditional 4K students along with 5K-4 (was 4K-5).

2. Waller is now 5K-4 (was 4K-5) 

3. Winkler is now 5K-4 (was 4K-5) 

4. Cooper Montessori is and was 4K-6

5. Karcher Middle School is now 5-8 (was 6-8) 

6. This change in grade configuration caused the district to engage in redistricting of all of our 5K through grade 4 students to balance out traditional section numbers between Dyer, Waller, and Winkler.  

7. By making these adjustments we were able to make the necessary staffing reductions for the $5,000,000 deficit.  

Shortened the school year

1. During the 2023-2024 school year students had 176 days of school and staff had 189 days.  

2. Starting the 2024-2025 school year student days were reduced to 167 days of school and staff to 178.  

3. By engaging in this practice our teaching staff was not given a CPI increase but rather less work days saving the district approximately $1,200,000.

Delayed maintenance on buildings & grounds 

• Necessary projects are being delayed due to a minimum capital improvement budget of $250,000.  Capital improvement projects are similar in thinking to getting an oil change on your vehicle.  If you don’t have the funds to get an oil change you put it off.  Overtime, this will be a larger problem for your vehicle if you continue to put off your oil change.  This is what the district is having to do in regard to capital improvement projects, delaying necessary repairs and maintenance which will in turn cause future concerns or larger costs.

The following adjustments were made to the budget for the 2023-2024 year: 

1. Shifted all of 4K-6 grade Montessori to Cooper Elementary School.  This shifted all traditional sections from Cooper to Dyer Elementary School allowing the district to reduce elementary teaching positions by 4 elementary teachers. 

2. Staff reductions:

In 2023-2024 the district reduced staff by:

• 4 elementary teachers 

• 1 high school English teacher 

• .78 high school math teacher

• 1 high school science teacher

• 1 special education teacher 

• .3 math specialist

• Director of Communications 

• .61 Health Aide

• 2 instructional coordinators

• 1 pupil services coordinator

In the two years prior to the 2023-2024 school year the district reduced staff by:  

• .2 math specialist

• 1 high school science teacher 

• 1 math teacher 

• 1.75 custodians

• 1 groundskeeper 

In addition:

• The board had to draw down the Fund Balance from 17.5% to 11.98% for the 2023-2024 school year. A district's fund balance should be between 20-25% of the district's full budget.  If the referendum fails the district's fund balance could be as low as 1.86%. 
• Increased field trip costs to families.  
• Stipends were reduced in curricular and co-curricular assignments. This means that the additional compensation that individuals received for being coaches, advisors or taking on extra assignments were reduced. 
• Registration fees for families increased.  
• Technology updates for staff and classroom needs were delayed.  
• The District reduced building budgets by roughly $20,000. 
• Deferred maintenance projects by reducing capital maintenance budget to $250,000.  Budget should be $1,400,000 per year to keep up with the 10 year capital improvement plan.  However, the district has been operating on $500,000 historically per year.  
• Reduced our before/after school care locations down to two locations versus three locations to assist with staffing.  
• During the 2022-2023 school year there was before/after care at Cooper, Waller, and Dyer with 135 total students enrolled.  
• At the start of the 2023-2024 school year we reduced our locations to Dyer and Waller with 150 students enrolled.  
•  Changes were made to the employee benefit package.  
•  District used federal grant dollars (ESSER COVID) to cover operational  costs.  

The district has been working on innovative ways to reduce costs and/or generate revenue by:  

• Public Montessori Program (4K-6) 

  • By putting all of the Montessori Program in one location (Cooper) the district can work to advertise and market the program to attract open enrollments into the school district.  

  • At the start of the 2023-2024 school year the district gained 10 open enrollments into 4K-5K Montessori.

• Full day 4K 

  • At the start of the 2022-2023 school year the district engaged in offering full day 4K along with continuing the option of half day 4K.  This is advantageous as not all school districts in the surrounding area offer full day 4K.  This also supports our resident families as they do not have to pay for child care for their 4K student.  

  • Our enrollment was historically around 130-140 students enrolled in 4K.  The start of the 2023-2024 school year we had 160-165 students enrolled in 4K. 

• Before & After School Care 

  • The district had a long standing relationship with Plymouth Childcare Center where Plymouth ran before/after school care at both Waller and Cooper servicing approximately 50-60 students per year.  

  • The district saw a greater need and added our own BASD before/after school care in 2022-2023 and worked in collaboration with Plymouth.  During the 2022-2023 school year Plymouth serviced 50-60 students and BASD serviced 70 students.   

  • For the start of the 2023-2024 school year Plymouth and the district collaborated their efforts and decided that Plymouth can serve the community by providing more spaces for birth to 3 year olds and then BASD can service the before/after care for families.  Therefore, BASD is now servicing 150-160 students in before/after school care for the 2023-2024 school year.

• Wisconsin Connect Charter School (WisCo) 

  • In order to continue to provide comprehensive offerings to students and families the district developed a charter school for the start of the 2023-2024 school year.  

  • Wisconsin Connect Charter School is an option for families interested in their students engaging in their education through a virtual, book-based, or hybrid program.  

  • The district started the program in September 2023 and has 65 enrollments as of November 2023. 

• Project WIN
  • WIN stands for “What I Need” and is a special education program for our highest need students in the district.  Instead of spending $100,000-150,000 per student to send them to a specially designed institution the district developed our own specially designed program in-house.  The district services 6-8 students per year saving the district approximately $400,000-500,000 per year after taking out the cost of staffing and supply/material/curricular costs. 

The failure of the referendum would mean the Burlington Area School District’s budget for the 2024-2025 school year would be cut by $2,000,000.  With the $2,000,000 in cuts for the 2023-2024 school year coupled with the $5,000,000 in cuts for the 2024-2025 school year the cuts that would need to be made for the $2,000,000 deficit going into the 2025-2026 school year will impact student programming and opportunities.

Here are a list of cuts or adjustments that would take place of the April 1, 2025 operational referendum were to not pass: 

STAFF AND PROGRAM CUTS:

1. Reduction of 20-25 more staff (This is on top of the 54 employees reduced over the past 3 years) 

2. Reduction in staff WILL reduce programs, limiting students' exposure to critical academic areas along with fine arts, STEM, and career opportunities essential for success in an evolving workforce.  

INCREASE FEES: 

1. Continue to increase student registration and extracurricular fees. 

2. Continue to increase community facility use fees.

REDUCE TRANSPORTATION: 

1. Within the community survey the one area the community felt could be reduced or impacted was having students ride on buses longer.  Therefore, we would work to eliminate bus routes which would lead to all public and private school students riding on buses longer.

REDUCE RESOURCES: 

1. Continued cuts to essential materials / resources for classrooms.

FACILITY CUTS: 

1. Continue delaying maintenance of facilities leading to increased expenses in the future.

One of the goals within the 2024-2029 strategic plan is to improve the district’s retention rate from 82% to 90%.  Additionally, the district plans on doing an analysis of the compensation structure and to determine the district/board's philosophy on compensation in relation to market rate determinations.  The ultimate goal is to retain and attract high quality staff in service to students, families, and the Burlington community. 

The operating referendum aligns with the school district's long-term strategic goals by providing a sustainable and reliable source of funding to support key initiatives and objectives such as:

1. Maintaining & Improving Educational Excellence:

   • The referendum ensures the school district can maintain a high standard of education by providing funding for highly qualified staff and up-to-date learning resources.

   • The referendum supports the ongoing implementation of innovative teaching practices and technology providing high quality teaching and learning to all students.

2. Student Success and Support:

   • The referendum enables the school district to enhance teaching and learning supports to assist student growth and achievement within the areas of reading and math.  

   • By addressing the diverse needs of students, the referendum supports the importance of mental health needs and fostering a positive and inclusive learning environment that contributes to the overall success and well-being of each student.

3. Professional Development:

   • The referendum allows the school district to invest in ongoing professional development opportunities for teachers and staff, aligning with the importance of consistent and continuous improvement.

   • Supporting professional development ensures educators stay informed about the latest educational methodologies, trends, and best practices, contributing to the district's commitment to excellence in teaching.

4. Financial Stability and Sustainable Growth:

   • A recurring operating referendum provides financial stability, allowing the school district to plan for long-term sustainability and growth.

   • Stability supports the implementation of the 2024-2029 strategic plan without the uncertainty of periodic budget constraints, contributing to the district's ability to pursue its growth objectives.

5. Community Engagement:

   • Continuous engagement with parents, business, and the community aligns with strategic goals related to transparency, communication, and building a strong partnership between the school district and the community.

In summary, the operating referendum serves as a critical tool for achieving the school district's long-term strategic goals by providing the necessary financial support to implement and sustain initiatives that contribute to educational excellence, student success, and the overall growth and well-being of the school community.

The school district has a dedicated referendum page on its website with numerous resources.

If you cannot find the information you are looking for, please call the district office at (262) 763-0210 or email Nora Rangel-Kubacki, administrative assistant to the superintendent and school board.

April 1, 2025.