Dean Mosiman:

More than 70% of the city’s General Fund revenues come from the property tax, and nearly two-third of property taxes have already been paid for 2020, which brings some stability, Schmiedicke said. The city already imposed a $40 wheel tax for the current budget. But preliminary projections show an overall drop of 4%, or about $13 million, in general fund revenues that wipes out forecast growth from 2019 to 2020, he said. 

The city expects hotel room taxes to fall 30%, or about, $6 million, and anticipates general state aid cuts of 5%, or $1.6 million, due to state revenue shortfalls, Schmiedicke said. City investment earnings could fall 40%, or $1.5 million, he said.

Meanwhile, fines and forfeitures from moving and parking violations are expected to fall 25%, or 1.6 million, and licenses and permits may be down 15%, or 1.5 million, this year, Schmiedicke said. Many other revenues are expected to fall, including Metro Transit fares, street use vending; and Monona Terrace events. 

Other impacts include rising pension costs due to reduced earnings in the Wisconsin Retirement System portfolio, and reduced liability insurance dividends, he said.

Notes, links and some data on Madison’s planned 2020 referendum.

“Madison spends just 1% of its budget on maintenance while Milwaukee, with far more students, spends 2%” – Madison’s CFO at a recent 2020 referendum presentation.

Associated Press:

The defeat Tuesday of the largest borrowing proposal in the history of California schools — $15 billion for repairs — has opened the question of whether Californian voters put a temporary halt to the growth of government debt because of the unsettled political scene, or because they are on the cusp of a tax revolt akin to one in the 1970s that brought landmark changes to property taxes.

By itself, the crash of the question on the March 3 primary ballot was striking — it’s been a generation since a state school bond failed and there was no telling moment prior to the election indicating voters had soured on it.

But it didn’t stop there. Voters rejected more than half of the 237 local tax and bond measures on that ballot, with several dozen contests still undecided as California authorities wade through hundreds of thousands of uncounted ballots, according to a tally by the California Taxpayers Association.

The taxpayer supported Madison school district is planning a substantial tax and spending increase referendum for this fall – 2020.

Video, slides and notes from a recent presentation.

Logan Wroge:

The Madison School Board signaled support Monday for a $317 million facilities referendum and a $33 million operating referendum, setting up the board to finalize the ballot questions later this month for the November election.

With several options on the table, board members expressed broad support for a slightly larger facilities referendum that would include more money for projects focused on sustainability and energy efficiency. Additionally, the board gravitated toward a smaller operating referendum than had been proposed.

“This is a once-in-a-generation opportunity,” board member Kate Toews said during an Operations Work Group meeting. “Investing in kids is the future; investing in the climate is the future.”

Scott Girard:

Notes, links and some data on Madison’s planned 2020 referendum.

“Madison spends just 1% of its budget on maintenance while Milwaukee, with far more students, spends 2%” – Madison’s CFO at a recent 2020 referendum presentation.

Projected enrollment drop means staffing cuts coming in Madison School District

Madison’s taxpayer supported K-12 school district, despite spending far more than most, has long tolerated disastrous reading results.

In addition, Madison recently expanded its least diverse schools.

Oren Cass:

2/ Punchline: Popular perception is correct. In 1985, the typical male worker could cover a family of four’s major expenditures (housing, health care, transportation, education) on 30 weeks of salary. By 2018 it took 53 weeks. Which is a problem, there being 52 weeks in a year.

Notes, links and some data on Madison’s planned 2020 referendum.

“Madison spends just 1% of its budget on maintenance while Milwaukee, with far more students, spends 2%” – Madison’s CFO at a recent 2020 referendum presentation.

Projected enrollment drop means staffing cuts coming in Madison School District

Madison’s taxpayer supported K-12 school district, despite spending far more than most, has long tolerated disastrous reading results.

In addition, Madison recently expanded its least diverse schools.

Logan Wroge:

“I appreciate the cuts in central office because I want more people in the classroom,” said board member Nicki Vander Meulen.

Ruppel said the proposed reduction of school staff, which would be about 35 positions across a district that employs 4,000 people, is in response to expected short-term drops in enrollment due to lower birth rates, while still allowing schools to be staffed to reach optimal class sizes.

But under the two-budget scenario, which is partway through the planning process, base-wage bumps and new money for the district’s equity programs could vary depending on the outcome of a referendum.

….

In recent years, Madison School District referendums have passed with relative ease. Voters approved the last four referendums by at least a 2-to-1 margin.

The district has also found “broad support” (dive into the details) for both referendums proposed for the presidential election ballot, and an external poll of likely voters in November suggests the majority of voters in the district would support the referendums.

Drafts of both budgets will be released in April. The School Board will then take a preliminary vote on the spending plans in June before a final vote in the fall.

Notes, links and some data on Madison’s planned 2020 referendum.

“Madison spends just 1% of its budget on maintenance while Milwaukee, with far more students, spends 2%” – Madison’s CFO at a recent 2020 referendum presentation.

Projected enrollment drop means staffing cuts coming in Madison School District

Madison’s taxpayer supported K-12 school district, despite spending far more than most, has long tolerated disastrous reading results.

In addition, Madison recently expanded its least diverse schools.

Ben Eisen and Laura Kusisto:

The average property tax bill in the U.S. in 2018 was about $3,500, according to Attom Data

Solutions, a real-estate data firm. But many residents in New York, New Jersey, Connecticut and California had been deducting well over

$10,000 a year. In Westchester County, N.Y., the average property-tax bill was more than $17,000, the highest in the country.

Among the people who are uprooting, many say they had long considered a change. But they saw the tax law as a reason to finally undertake the potentially difficult task of changing their state residency.

“It was another bucket of straw on the back of the camel,” said John Lee, a wealth-management executive and longtime resident of the

Sacramento, Calif., area. Mr. Lee and his wife, Tracy, moved their primary residence last winter to Incline Village, a resort community on the Nevada side of Lake Tahoe.

Let’s Compare: Middleton and Madison Property Taxes

2019: Madison increases property taxes by 7.2%, despite tolerating long term, disastrous reading results

Madison’s taxpayer supported K-12 school district, despite spending far more than most, has long tolerated disastrous reading results.

In addition, Madison recently expanded its least diverse schools.

Scott Girard:

During a board retreat Saturday to discuss strategies for both a capital and an operating referendum in April, board members generally agreed they wanted to vote in March — before board member Kate Toews’ term is over and a new board member takes her place.

Toews is not running for re-election to Seat 6 in April, and some board members said it could be a complex topic for a new board member to walk into. Board president Gloria Reyes also said she wants the outreach and communication process to begin as soon as possible.

“I do strongly believe that if we’re going to start a process and strategy we should all have voted,” Reyes said.

Public input on the projects, presented Monday night during an Operations Work Group meeting, shows overall support for both, though there are some concerns about how the operating funds would be used.

Board members and district staff have been working with a plan for a $315 million capital referendum to renovate the four high schools, build a new school in the Rimrock Road neighborhood and relocate the alternative Capital High School to the Hoyt building. The same ballot could ask voters for up to $36 million in operating funds over four years. That would allow the district to exceed state revenue caps by $8 million in 2020-21 and 2021-22 and $10 million in 2022-23 and 2023-24, though some board members asked to go lower than that at least for the first school year.

That complicates this summer’s budget process, as the board will have to approve two budgets — one for if the operating referendum passes and one in case it fails — but it also presents an opportunity for the board to show voters its priorities and the cost to the district if it fails, board members said.

Much more on the planned 2020 tax and spending increase Madison referendum.

A presenter [org chart] further mentioned that Madison spends about $1 per square foot in annual budget maintenance while Milwaukee is about $2.

Despite spending far more than most taxpayer supported K-12 school districts, Madison has long tolerated disastrous reading results.

2013; 2019 Jennifer Cheatham and the Madison experience.

Michael Ferguson:

In October 2019, select U.S. officials offered closed-door congressional testimony regarding their knowledge of events surrounding Russian interference in the 2016 presidential election. Dr. Fiona Hill, a former adviser on President Donald Trump’s National Security Council, testified it was very likely Russian disinformation influenced the documents used to acquire a surveillance warrant on members of then-candidate Trump’s campaign. A January 2018 Wall Street Journal editorial by the Central Intelligence Agency’s former Moscow station chief, Daniel Hoffman, appears to support her assessment.

If even partially true, this is a significant development. It would force the national security enterprise to amend its understanding of disinformation’s potential to shape the national consciousness—a conversation that until recently has been defined by references to social media bots and Internet trolls.

Reporting on disinformation generally focuses on either violent extremists or hostile states deploying carefully crafted lies to influence portions of the civilian population by distorting their perception of the truth. But this was not always the case. In fact, this emphasis on public opinion is a rather nascent phenomenon. How did we get to this point, why is disinformation so prevalent, and what should the world expect from it going forward? The following analysis explores these increasingly important questions, and concludes that the skyrocketing volume, reach, and subtlety of disinformation from both states and non-state actors will make it harder to combat at the policy level in the future.

The taxpayer supported K-12 Madison School District continues to push the proposed 2020 tax and spending increase referendums.

The district acknowledges, though, that survey results are “not fully indicative of the general population,” because 85% of those who responded either currently have a student in Madison schools or work for the district.

Despite spending far more than most taxpayer supported K-12 school districts, Madison has long tolerated disastrous reading results.

Documents from the January 11, 2020 taxpayer supported Madison School Board retreat:

Administration slides (pdf)

Hanover Research Consulting Summary (PDF)

Hanover Research: duckduckgo www

Illinois (!) Association of School Boards referendum summary (pdf)

Much more on the planned 2020 taxpayer supported Madison School District referendum, here.

2019: Madison increased property taxes by 7.2%.

Benjamin Yount:

Sen. Duey Stroebel of Wisconsin’s 20th District wants taxpayers in the state to know two things.

One, property taxes in Wisconsin are actually down over the past decade. That’s thanks, he says, to Republican lawmakers and former Gov. Scott Walker. And two, Stroebel said the state legislature has protected homeowners from the skyrocketing cost of local school referendums. But that may end. 

“Taxpayers haven’t really felt the pain of those increased [local school] budgets because of the backfill that’s been going on,” Stroebel, R-Saukville, said. 

Stroebel said the Wisconsin legislature spent more than $4 billion on schools across Wisconsin over the past five years to help keep former Gov. Walker’s promise to hold the line on taxes. 

Taxpayer supported K-12 spending transparency is worth a deep dive.

Dominic Cummings:

This blog looks at an intersection of decision-making, technology, high performance teams and government. It sketches some ideas of physicist Michael Nielsen about cognitive technologies and of computer visionary Bret Victor about the creation of dynamic tools to help understand complex systems and ‘argue with evidence’, such as ‘tools for authoring dynamic documents’, and ‘Seeing Rooms’ for decision-makers — i.e rooms designed to support decisions in complex environments. It compares normal Cabinet rooms, such as that used in summer 1914 or October 1962, with state-of-the-art Seeing Rooms. There is very powerful feedback between: a) creating dynamic tools to see complex systems deeper (to see inside, see across time, and see across possibilities), thus making it easier to work with reliable knowledge and interactive quantitative models, semi-automating error-correction etc, and b) the potential for big improvements in the performance of political and government decision-making.

Madison’s taxpayer supported K-12 school district, despite spending far more than most, has long tolerated disastrous reading results.

More, here.

Samantha West:

The Neenah school board will decide Tuesday whether to hold an April 7 referendum to partially fund construction of a new $157 million high school.

The $115 million referendum is part of a $182 million plan for the new high school in the town of Neenah and other district facility improvements. The proposal marks a dramatic shift from a failed referendum earlier this year to replace Shattuck Middle School.

The new plan would be funded by borrowing authorized by the referendum and an additional $47 million in non-referendum borrowing that doesn’t require voter approval. The district also would allocate $20 million from its operating budget over the next four years.

Neenah officials estimate that if the referendum passes, the tax rate — property tax dollars levied per $1,000 of equalized property value — would increase to $7.86. This year’s tax rate was $6.85.

Scott Gerard:

Between now and the 2024-25 school year, the district will lose another 1,347 students, according to district projections. Since the 2011-12 school year when MMSD added 4-year-old kindergarten, the district has always had at least 26,000 students. Projections show it will drop below that in 2024-25 for the first time since.

Projections from Vandewalle and Associates show enrollment stability in the “long term,” the report adds.

The district’s projections are based on what the report calls a “sharp decrease” in the birth rates in the cities of Fitchburg and Madison in 2016 and 2017, the last two reported years. Continued drops in enrollment are significant for the district’s funding, as state aid is largely based on enrollment, measured each September on the third Friday of the school year.

The drops are projected to initially come in elementary schools, as kindergarten classes will continue a trend of being smaller than the year prior. At the high school level, East and Memorial are projected to grow in attendance by the 2024-25 school year, while West will have five students fewer than this year. La Follette is projected to lose 49 students from this year to 2024-25.

The overall enrollment decrease means that most buildings are projected to be at or below the “ideal” 90% capacity use five years from now, according to data included in the report, which is calculated using factors including class size policy, section availability and building size. The most significant exceptions are Falk Elementary School, which is projected to be at 104.4% of its capacity in five years, and West High School, projected at 98.7% — just below its current 98.9% utilization.

Madison’s taxpayer supported K-12 school district recently expanded their least diverse schools.

“The data clearly indicate that being able to read is not a requirement for graduation at (Madison) East, especially if you are black or Hispanic”

Madison School District projects loss of 1,100 students over next five years

But by 2024-25, the total number of students is projected to drop to 25,779 students, about 1,400 fewer students, or a 5% reduction, from enrollment 11 years prior, according to the report

Madison taxpayers recently expanded our least diverse schools, despite nearby available space. Yet, we have long tolerated disastrous reading results.

Will Flanders:

If a proposed $640 million referendum for Milwaukee Public Schools passes, local taxpayers won’t be the only ones on the hook. A referendum of this size would result in as much as $200 million additional dollars in state money to Milwaukee Public Schools.

How does a local decision to raise their own taxes affect state finances? Because shared costs between state and local governments work differently depending on the property wealth of a district. When a district with substantial property wealth votes for a referendum, the effect is some reduction in state aid, with local taxpayers shouldering more of the burden. But when a low-property wealth district like Milwaukee passes a referendum, a portion of that cost is born by the state. This aid comes through what is known as Equalization Aid — funding designed to create spending equality across all of Wisconsin’s more than 420 school districts.

To estimate the impact on Equalization Aid, I used DPI’s Equalization Aid worksheet, and altered the amount of shared cost for Milwaukee by the proposed amount of the referendum. A few cautionary notes are worth mentioning here. First, this worksheet simplifies the process, so the figures presented here are estimates. It should also be noted that if the referendum amount varies substantially from the amount in news reports, or if the time frame for the funding changes, these estimates would be further off. Finally, if other districts implement referenda at the same time, this calculation would change. I include both MPS’s $640 million proposal, as well as the smaller “Plan B” proposal estimated at $319 million.

Madison is also planning a substantial tax and spending increase referendum in 2020.

David Blaska:

It was what we thought it was. Madison is 10 to 1 opposed to the city’s $40 wheel tax, judging from the 2,000 pages [CORRECTED] of e-mails that flooded city hall from 250 individuals. Kudos to Chris Rickert of the WI State Journal for filing the open records request to get that info. Many of the supporting messages came from insiders like the public employees union.

Didn’t stop the council from approving Mayor Satya Rhodes-Conway’s* tax 11 to 8 a month ago. (* Progressive Dane)

Voting YES: Bidar, Furman*, Lemmer, Rummel*, Martin, Evers*, Moreland, Foster*, Verveer*, Heck*, Kemble* — 11

Voting NO: Abbas, Albouras, Baldeh, Carter, Harrington-McKinney, Henak, Skidmore, Tierney — 8

e-mail iconNotice anything strange about the tax? It was sold as the only way possible to balance the city budget. There Was No Choice! Scott Walker made us do it! No choice — if you wanted to embark on a multi-million dollar rapid bus transit system, that is. But alders never really debated bus rapid transit. A major policy initiative snuck in through the back door. We have to fund it before we will know it works.

Rickert’s news story concludes with this gem: Ald. Grant Foster* responds to a constituent opposed to the wheel tax this way:

“Can you imagine a future where you might need to own fewer or zero cars? What would it take to make that a reasonable option for you or your household?”

Madison school district is planning a substantial tax and spending increase referendum in 2020.

Madison taxpayers have long spent far more than most K-12 school districts, yet, we have long tolerated disastrous reading results

Annysa Johnson:

Providing Milwaukee Public Schools students with a top-of-the-line education could cost as much as $640 million more a year in operating costs alone, more than doubling local property tax bills, district officials and their financial advisers told members of MPS’ referendum task force.

The figure appeared to shock at least some members of the ad hoc panel during a meeting Monday evening. And they cautioned against asking taxpayers for too much, saying a defeat at the polls could hinder MPS’ prospects for a referendum for years. 

“The last time you had a referendum was 25 years ago,” said Alan Shoho, dean of the University of Wisconsin-Milwaukee’s School of Education, who suggested the task force not recommend a figure at all, but leave that up to the school board.

Madison is planning a substantial 2020 referendum.

Logan Wroge:

Madison K-12 Achievement Data @ LaFollette 2020 Referendum Presentation

Scott Girard:

A report from the district’s Research and Program Evaluation Office presented Monday to the School Board indicated people who have attended one of the 31 sessions, some targeted to specific buildings or communities and some for the general public, have agreed the district has targeted areas of need in the $310-315 million proposal being discussed now. That would add an estimated $69 per $100,000 of property value to a tax bill.

“We’re not seeing at this point any major red flags that would cause you to shift course,” district executive director of research, accountability and data use Andrew Statz said. “We’re encouraged by what we’re seeing.”

The presentation included assertions on redistributed state taxpayer dollars sent to Madison (2010 – 2019 data available here).

The presentation did not mention total Madison K-12 spending , nor the implications of spending increase referendums on local property taxes and redistributed state taxpayer funds. In essence, the more a local school district exceeds state revenue limits, the less statewide funds they receive. Nonetheless, redistributed state taxpayer funds have grown over the past decade (note that there has been a reduction in Madison’s increase due to our tax and spending growth practices, via a number of referendums).

Notes on the above from Kelly Ruppel, the Madison School District CFO:

We are a -15% aid loss district, primarily driven by Madison’s equalized property value growth impact on the equalization aid formula. -15% loss is the maximum allowable; therefore, the referendum would not likely cause us to lose any more state aid funding, rather in either scenario we are quite likely to still be -15% loss.

I appreciate Ms. Ruppel’s words. I wonder how much the property value growth has contributed to this vs. previous referenda?

Presentation handouts (PDF).

Total 2019 – 2020 taxpayer spending is “around $500,000,000” (About $18,500 per student) according to the District’s Chief Financial Officer’s [bio] response to a question.

Madison supports 13,573 elementary, 5,479 middle and 7,862 high school students (26,914 total).

A presenter [org chart] further mentioned that Madison spends about $1 per square foot in annual budget maintenance while Milwaukee is about $2.

Milwaukee taxpayers plan to spend $1.2B for 75,234 students, or $15,950 per student, about 16% less than Madison.

The referendum website.

Mission vs organization notes:

Commentary and Data on Madison’s High School Graduation Data.

“The data clearly indicate that being able to read is not a requirement for graduation at (Madison) East, especially if you are black or Hispanic”

Logan Wroge:

The topic of an operating referendum came out of discussion on a potential 2020 facilities referendum, which could be as high as $280 million.

“I love talking about the facilities referendum, it’s exciting, it’s new stuff,” Carusi said. “But without that operating-to-exceed referendum, we’re looking at a lot of difficult cuts and choices.”

Kelly Ruppel, the district’s chief financial officer, said district officials could put together information on a possible operating referendum for the board to talk about in either August or September.

The School Board also decided to temporarily shelve a guiding long-range facilities plan, which includes recommendations on the potential 2020 referendum and longer-term suggestions such as responding to changes in enrollment and whether to sell the district’s Downtown administration building.

Some board members said they would rather focus on gathering input on and finalizing a capital referendum for next year and avoid confusion on how the long-range facilities plan factors into it.

Negassi Tesfamichael:

To get on the November 2020 ballot, the board would have to approve the language used in the referendum question by May 25. The board discussed its interest on Monday in authorizing the referendum before the May deadline, possibly in March or April.

The referendum could include more than asking taxpayers to fund facilities. An operating referendum approved by Madison voters in 2016 allowed the district to raise more than $25 million over the last several years, but funding from that vote runs out at the end of the upcoming school year.

Not having an operating referendum alongside the facilities question in 2020 could make next year’s budget cycle difficult, as the board might have to decide potential cuts. The board approved a $463 million preliminary budget proposal last month.

“We’ll be faced with a choice this year as to whether we want to offer another operating-to-exceed referendum and we haven’t built that into the dialogue or feedback process thus far,” board vice president Kate Toews said. “We have been very focused on our capital referendum to improve and innovate our facilities.”

The board will likely start having more discussions about a potential operating referendum in the fall now that state funding for the next two years is set.

The board also approved on Monday a transfer of $185,000 from a reserve fund to increase staff compensation.

Madison has long spent far more than most taxpayer supported school districts ($18.5 to 20k per student, depending on the district documents).

Yet, we have long tolerated disastrous reading results.

Logan Wroge:

If voters were to approve a $150 million referendum, the owner of a $300,000 house — near the median-value home in the district of $294,833 — could have their property taxes increase by $93 annually, according to district estimates.

A larger referendum of $280 million is estimated to raise property taxes on a $300,000 house by $159 annually.

If a $280 million referendum were approved, the Madison School District’s debt, excluding interest payments, would be $357 million, according to the district.

The district projects its debt as a percentage of the total tax base value under a successful $280 million at 1.3% — estimated to be the third lowest out of 15 Dane County school districts.

Currently, the Madison School District has $77 million in debt, which ranks last out of the 15 districts for debt as a percentage of total tax base value, according to the district.

Madison has long spent far more than most taxpayer supported K-12 school districts.

Yet, we have long tolerated disastrous reading results.

Interestingly, Madison recently expanded its least diverse schools, despite space at nearby facilities

2010: Madison School Board member calls for audit of 2005 maintenance referendum spending.

Madison’s property tax base has grown significantly during the past few years, curiously following the unprecedented $40B+ federal taxpayer electronic medical record subsidy….

Margaret Cannon:

According to Wisconsin Policy Forum report, voters approved referendum questions totaling $783 million. Total borrowing requests on school district ballots statewide reached $1.2 billion, with voters turning down some of the largest individual ballot items.

Voters approved 45 of the 60 questions on this year’s ballot.

The Wisconsin Policy Forum report shows a 15 percent drop in approval ratings compared to last year when voters said yes to 90% of referendums on the ballot. Even so, 2019 ranked as the third-highest approval year since revenue caps were created in the 1993-94 school year.

“To get large numbers like these, you probably need a lot of things to happen at once,” said Jason Stein, research director at the Wisconsin Policy Forum.

Factors such as the economy and interest rates often indicate how the public will vote on school spending. A recent Marquette University Law School survey showed that voters felt it was more important to spend on schools than to lower property taxes.

Much of the support was found in increases for basic district operations, such as teacher salaries, school maintenance, transportation and classroom spending. Districts have said that state-imposed spending caps and Wisconsin’s school funding formula have caused them to turn to local voters to approve higher spending.

Negassi Tesfamichael:

In 2015, Madison voters authorized a $41 million school facility improvement plan that addressed needs in 16 schools across the district.

“I think our schools need (upgrades), but at the same point, I don’t want to force someone out of their home, which I’ve seen happen to some friends in Middleton because they can’t afford the referendum,” School Board member Nicki Vander Meulen said.

Voters in the Middleton-Cross Plains School District approved a referendum last November authorizing $138.9 million for an expansion to its high school and a new intermediate school. Since 2013, eight referendums have been voted on and approved in school districts around Dane County, not including Madison.

“We haven’t made a major capital investment in 50 years,” said School Board member Kate Toews. “Our kids deserve fantastic educational spaces and certainly our families see new buildings going up around them.

Madison has supported a number of maintenance referendums over the years….

The lack of results lead to calls for an audit in 2010 for a 2005 referendum (I’ve not seen a Capital Times followup….)

We have long spent far more than most (now around $20k per student) despite tolerating long term, disastrous reading results.

Bill Osmulski:

Homeowners in 148 school districts across Wisconsin will be getting an unexpected tax cut next year, but many of those districts would prefer to keep that a secret – and backfill those savings with new spending.
It will be decades before the savings justify the expense – which was considerable. Last year alone, districts collected an additional $92.3 million through the Energy Efficiency Exemption.

The reason for the tax cut is the termination of the Energy Efficiency Exemption (EEE). This loophole allowed school districts to raise taxes for supposed energy efficiency projects without going to referendum.

The energy savings on many of these projects is negligible. It will be decades before the savings justify the expense – which was considerable. Last year alone, districts collected an additional $92.3 million through the EEE. With the program eliminated, property taxes in those 148 school districts will automatically drop $92.3 million.

However, 21 of those districts see this as an opportunity to downplay the true tax impact of their referendums on next month’s ballot. For example, the Hartford J1 School District has a referendum for $5.5 million. According to the district’s website, “If the referendum is approved, there would be no impact on current school tax rates over the life of the 15-year borrowing term.”

Southern Door County Schools has a $6,270,000 building referendum that “would not increase your taxes over current levels.”

Barry Adams:

Milton voters have rejected for a second time a plan for a new high school that would have addressed district-wide space needs but in Iowa County the Barneveld School District will get a major facilities upgrade.

The questions were among referendums put forth by eight school districts around the state on a day with few other items or races on the ballot.

Annysa Johnson:

A handful of supporters also testified, urging lawmakers to pass the measures.
“These referendums are just out of control. We’re spending way too much money, and our taxes are way too high,” said conservative activist Orville Seymer of the group Citizens for Responsible Government.
The two were among more than a dozen witnesses who testified before the education panel and the Senate’s Committee on Government Operations, Technology and Consumer Protection, whose chairman, Sen. Duey Stroebel (R-Cedarburg), is spearheading what he calls the “referendum reform initiative” and is the lead sponsor of some of the bills.

Annysa Johnson:

The bills would:

Eliminate so-called recurring referendums for operating expenses — those that raise taxes indefinitely — and cap non-recurring referendums at five years.

Dock a district’s state aid by an amount equal to 20% of whatever it generates in an operating referendum. So, if voters approve, say, $5 million, they lose $1 million in aid.

Require all referendum questions be placed on a spring or fall general election.

Limit when school districts can decide to go to referendum. A school board could vote on an operating referendum only during a regularly scheduled board meeting, and on a debt issue only at the annual meeting where the tax levy is set.

Require districts to disclose the costs of debt service and interest payments on any debt issue.

And provide a 50% match for district funds placed in a long-term capital improvement trust fund, so-called Fund 46, to encourage cash financing of maintenance and construction projects.

Wisconsin school districts have increasingly turned to referendums — to raise operating funds and take on debt for capital projects — as their budgets were squeezed by a combination of revenue caps, declining enrollments and hundreds of millions of dollars in cuts to state aid in recent years. Last year alone, voters agreed to borrow $1.35 billion for capital projects, 10 times more than in 2011 and the most since 1993, according to the Wisconsin Taxpayers Alliance. Similarly, there were 71 requests to exceed revenue caps last year, up from an average 41 annually between 2009 and 2013.

Locally, Madison has turned to referendums a number of times, augmenting it’s $460M annual budget (about $18k/student).

It is unfortunate two recent articles on the upcoming Madison School District tax & spending increase referendum lack data, such as:

• Total Spending for the current budget ($449,482,373.22 more) – about $18,000/student. Chicago spends about $14,336/student, Boston $20,707 and Long Beach $12,671/student.
• Historic Spending Changes (spending increases every year)
• Academic Outcomes vs. Spending
• Comparison with other Districts
• Middleton property taxes are about 13% less than a comparable Madison home.

Doug Erickson:

To offset cuts in state aid and the tightening revenue caps, Act 10 eliminated collective bargaining over benefits. State employees and other public workers without an existing contract were required to start contributing to their pensions. Once a district’s collectively bargained contract expired, the district also could do things such as switch insurance providers, increase employee benefit contributions, and change work rules — all without needing union approval.

“It took the handcuffs off school boards,” Nygren said.

In Madison, Act 10 ushered in significant changes. Faced with the state-imposed cuts but before Act 10 took effect, employee unions agreed during contract negotiations to major concessions in 2011-12. That included a salary freeze (saving $4 million) and a requirement that employees begin contributing 5.8 percent of their salary toward their state pensions (saving $11 million).

The union also agreed to drop Wisconsin Physicians Service as an insurance provider in 2012, a $5 million savings. WPS was the most costly plan the district offered, and employees who had opted for it had been paying a portion of their monthly premiums.

Union members also had agreed back then to begin paying a percentage of the premiums for the three other insurance options, although the School Board chose not to go that route at that point. That changed this year. The School Board is, for the first time, now requiring all employees to pay something toward their monthly health insurance premiums.

The percentage varies by employee group, with teachers paying 3 percent (6 percent if they don’t participate in the district’s wellness program). This followed the expiration of the district’s final union contract over the summer.

Doug Keillor, executive director of Madison Teachers Inc., the district’s teachers union, said Act 10 alienated public employees and took a “wrecking ball” to public schools.

“The district could keep cutting pay and could keep increasing health insurance contributions, so from that standpoint, the district has not transferred as much of the costs onto the backs of employees as they could,” he said. “But you have to first back up and say, ‘How do you build a quality public school district?’ A district needs to attract people into this profession and keep them. The Legislature didn’t give school boards the tools to do that.”

Sen. Leah Vukmir, R-Brookfield, a member of the Senate Education Committee, argues that most of the discussions about public school funding are wrongly framed from a perspective that more money automatically means higher student achievement.

“Our reforms are working,” she said. “We’ve given the school districts through Act 10 the tools to do more with the resources they have. Those districts that have embraced that are doing really well.”

Amber Walker:

Public education advocates are organizing in support of the upcoming K-12 operational referendum for the Madison Metropolitan School District, which is necessary to maintain a quality education for local students, they say.

On Nov. 8, the district is asking voters to permanently raise its revenue limit authority by $26 million.

The district proposes that this change happens incrementally over the next four school years. MMSD seeks an additional $5 million per year for the 2017-2018 and 2018-2019 school years and an additional $8 million per year for the 2019-2020 and 2020-2021 school years.

Commentary on redistributed state tax collections and spending.

Madison School District 2016 tax & spending increase referendum content. Channel 3000.

I’ve not seen total Madison School District spending data, much less history, amongst the referendum content.

Doug Erickson:

The district wants to permanently exceed state-imposed revenue limits by $26 million each year into perpetuity. The additional taxing authority would be phased in over four years, beginning this year. Over those four years, the additional cost to the owner of an average-priced home in the district — currently $254,548 — is estimated to average $35.76 annually.

Channel3000.

The Madison School District is considering another property tax increase referendum for the upcoming November election.

We’ve long spent more than most districts (“plenty of resources”), despite challenging academic outcomes. I thought it might be useful to revisit the choices homeowners and parents make. I’ve compared two properties, one in Middleton (2015 assessment: $257,500.00) and the other in Madison (2015 assessment slightly less: $249,300.00).

A Middleton parent/homeowner pays less over the years, with the difference growing significantly in recent times (note that my example Madison property features a 3.2% lower assessed value).

Tap to view a larger version of these images.

It is useful to review the assumptions in the District’s limited 2017-2019 budget disclosure document (lacks total spending….) 900K PDF. Related memo and proposed language.

Wisconsin redistributed taxpayer K-12 (and higher ed) spending: 2004-2014. Details below:

Tap for a larger version. Excel or Numbers versions.

Madison Schools’ 2013-2014 budget, charts, documents, links, background and missing numbers:

Where have all the students gone?

In closing, I’ve found that full budget information is much easier to find and review from Boston (spends more, but has lots of student choice) and Long Beach (spends quite a bit less per student, but offers more student choice).

Superintendent Jennifer Cheatham mentioned Boston and Long Beach as urban districts that have narrowed the achievement gap. Both districts offer a variety of school governance models, which is quite different than Madison’s long-time “one size fits all approach”.

Madison School District PDF:

We also know that MMSD has no extra factors to boost local revenues. Extra revenue factors, such as unused levy authority, General Fund Balance reserves, before considering a referendum to exceed the revenue limit, it is necessary to understand the tax levy forecast before any additional taxing authority. We have identified the major tax levy factors:

Flat to minimal enrollment growth over the next few years

No unused tax levy authority available

The debt service levy already reflects the impact of the 2015 referendum

The debt service levy does not reflect the impact of any future facility referendum, which would be at least 2-3 in the future

It will be important to measure the loss of equalization aid for any specific referendum to exceed the limit.

The 2008 Referendum to Exceed the Revenue Limit
In November 2008, on the presidential ballot, MMSD had a referendum question for recurring authority to exceed the revenue limit. The amounts were phased in, beginning in 2009 ($5.0 million), 2010 ($4.0 million) and finally 2011 ($4.0 million) for a combined $13 million of additional levy authority. The vote occurred three years before the before the Budget Repair Bill and Act 10, and passed with 87,329 ‘yes’ votes and 40,748 ‘no’ votes.

Partial Budget Spending Chart (excludes a number of district expenditures) – PDF and a consultant’s budget forecast.

Alan Borsuk:

Nicolet High School serves students from Fox Point, Bayside, River Hills and Glendale. Nicolet is both a high-performing school and a high-spending one. This year’s budget works out to more than $18,000 per student.

On April 5, voters in those communities approved allowing Nicolet, for the next six years, to spend $3.15 million a year more than the revenue cap that the state imposes on public schools. A $2.15 million a year addition to school spending that has been in place for five years ends this year.

Without the voters’ approval in the referendum, Nicolet would have cut spending by 15%, cut a dozen teachers and increased class sizes from typically about 23 to about 30, Superintendent Robert Kobylski said. The approval means about $7 per $100,000 of home value in additional taxes annually for Nicolet-area residents.

Madison is spending more than $17k per student.

Matthew Albright and Saranac Hale Spencer:

The success of those votes comes down to whether district officials can coax enough parents with children in public schools to go to the polls. They must outnumber those who don’t feel they have a stake in the schools or who feel districts should do more to prove they deserve a tax increase.

“If I go to my boss and haven’t done what I’m supposed to … I don’t ask for a raise,” said Susan Welsh, who wants to see Christina begin to improve student test scores and find efficiencies before she votes in favor. “I love my child enough to vote ‘no’ and hold them [the district] accountable to raising the ranking before I give them a raise.”

District supporters say referendums aren’t a luxury. They are a necessity.

Money that pays for schools is a mix of state, federal and local funds. While the state’s portion grows as districts enroll more students, the local portion comes from property taxes that don’t increase to match growing costs.

Frank Hollenbeck:

Productivity increased less than 1 percent on average in the last three years and real wages have flat lined or declined for decades. From mid-2007 to mid-2014, real wages declined 4.9 percent for workers with a high school degree, dropped 2.5 percent for workers with a college degree and rose just 0.2 percent for workers with an advanced degree.

Is the boom being built on broad base investment in plant and equipment? The current average age of working plants and equipment in the US is one of the oldest on record.

Molly Beck:

If approved, the referendum would raise property taxes about $62 on the average $237,678 Madison home for 10 years. The district is still paying off $30 million in referendum debt for the construction of Olson and Chavez elementary schools in the late 2000s, according to the district. The final payment, for the Olson project, is due in 2026.

The aggressive school district campaign to get the word out to voters about the proposal and a community group that has been knocking on doors advocating for its passage have largely been met with very little opposition.

“It’s really quiet,” said board vice president James Howard. “I guess we’ll just have to wait until April 7 to find out” whether it has community support.

Board member T.J. Mertz, who has worked closely with the pro-referendum nonprofit Community And Schools Together, said the board has received about a half-dozen emails questioning the increase in property taxes.

“But there is no organized opposition,” Mertz said. “Whether that’s a function of apathy, the political culture of Madison or the lack of a strong Republican Party (in the city), or whether this is a popular measure, it’s impossible to read in the absence of no organized opposition,” adding that there also has not been a conservative school board candidate in about six years.

The proposal comes at a time when the school district faces at least a $12 million gap in its $435 million operating budget for the 2015-16 school year. The maintenance work and $2 million in technology costs also included in the proposal would ease pressure on the district’s budget, Mertz said.

I emailed Michael Barry to confirm Ms. Beck’s $435,000,000 Madison Schools’ budget number, which is 8% or $32,000,000 higher than the previously discussed $402,000,000 2014-2015 budget. I’ve not heard from Mr. Barry.

That said, pity the poor citizen who wishes to determine total spending or changes over time using the District’s published information.

Pat Schneider:

At a forum this week on the referendum projects, many in the crowd on the city’s near west side focused on property taxes and “what we’re doing to save money,” Silveira said Tuesday in a meeting with the Capital Times editorial board.

“People get confused. They think if we pass the referendum, we won’t have the gap on the operating side,” said Silveira, the current president of the school board who is retiring at the end of her term next month.

In fact, cuts in state funding will contribute to a shortfall that, if voters approve the referendum bond sale, would demand a property tax increase next year of up to nearly 5.2 percent to balance the budget, about 1 percent of which would be due to spending approved by the referendum.

Those projects to expand crowded schools, add accessibility and update mechanical systems, as listed in this article about referendum advocacy and detailed on a school district web page.

Wisconsin State Journal:

The State Journal editorial board endorses this reasonable request.

Madison’s per-pupil spending on schools is more than $1,000 above the state average of about $12,000. That’s mostly due to operational costs, including higher pay and benefits for employees.

Madison property taxes are high, too. That’s partly because the state sends less aid to Madison, based on a formula that penalizes communities with higher property value.

But when it comes to construction, the Madison School District has been conservative. The district with nearly 50 schools and 28,000 students has built only three new schools in the last 45 years.

Moreover, Madison’s debt per student is the lowest among all of the school districts in Dane County, and half the state average, according to district figures. At the same time, interest rates are incredibly low.

The proposed maintenance tax & spending referendum includes plans to expand two of the District’s least diverse schools: Van Hise & Hamilton.

Only 20 Percent Turnout Expected Statewide for Tuesday’s Election.

Madison School District Administration (PDF):

MMSD received a total of 3,081 responses to the online survey. However, only Question #1 received the maximum number of responses; Questions #2-13 averaged around 2,200 respondents. Normally, a response rate is calculated by dividing the number of responses by the number of invitations to complete the survey. However, it is difficult to estimate an exact response rate to this survey, given that there was not a set number of invitations. The denominator, or number of possible respondents, could be calculated in a variety of ways, and that the survey allowed for an individual or family to take the survey multiple times. However, we have provided a couple possibilities for calculating a response rate, which should be considered very coarse estimates:

Per Housing Unit in MMSD Boundaries – According to ACS data, MMSD has about 100,000 occupied housing units, so about 3% of households within MMSD boundaries responded to any portion of the survey.

Per Households of MMSD Students – About 1,600 respondents reported having children in MMSD, and MMSD’s students as of October 2014 live in about 17,000 different households, so about 9% of households with MMSD students responded.

These response rates are high enough to be relatively certain about the survey results; the 2,200 responses to most questions out of 100,000 households would lead to a margin of error of about 2% with 95% confidence, and the margin of error relative to MMSD households would be similar.

Madison’s 2014/2015 budget includes a 4.2% property tax increase while spending between $15,000 and 16,000 per student – double the national average.

Related:

Madison’s long term disastrous reading results.

Substantial questions have been raised about the District’s last maintenance referendum. Unfortunately, we’ve not seen any additional information.

K-12 taxes and spending have increased substantially over the years, with little change in academic outcome.

Abigail Becker:

The Research & Program Evaluation Office studied the hypothetical possibility of moving students from crowded schools to others in the district and took into account six considerations the School Board adopted in 2007 when evaluating boundary changes.

These considerations include reasonable bus routes, a rule to keep students from moving schools more than once in five years, grandfathering fourth and fifth grades, desirable school size, avoiding low-income concentrations and keeping neighborhoods intact.

The report studied the possibility of moving some students between schools: Sandburg to Mendota; Midvale and Van Hise to Thoreau; Hamilton to Cherokee; Hawthorne to Lowell; and Kennedy to Allis.

Each proposed boundary change except one, Hamilton to Cherokee, failed to live up to the six-consideration framework, leading researchers to conclude that future long-term facilities solutions will be “more comprehensive, less politically controversial and less challenging for MMSD students and families than changing school attendance boundaries,” according to the report.

The district is proposing $27 million in additions and renovations at several schools to address crowding and other issues. Over the next several weeks it plans to seek feedback from the public.

At its Monday meeting, the School Board briefly debated the merits of using boundary changes instead of renovations.

Related: Madison School District considers school boundaries, might low income distribution be addressed?.

The Madison School District (1.4MB PDF).

“All elementary boundaries are due for a long term review”. Agreed. A look at the maps below along with the wide demographic variation across Madison public public schools indicates that addressing boundaries is job #2 – after dealing with the long term disastrous reading results.

Going to referendum prior to addressing boundary and demographic issues appears to be a “cart before horse” strategy.

It will be interesting to see how gubernatorial candidate Mary Burke addresses this question.

Presentation slides (tap to view a larger version):

Related: Open questions from the 2005 maintenance referendum lead to calls for an audit.

Molly Beck:

Even though expanding eight schools is only part of the plan, “if there’s any one (school) that looks particularly challenging to explain,” Hughes said, “we know that will be what the opponents of the referendum will latch onto. … We are going to have to be able to work through that and decide whether each of these is separately defensible.”

Hughes added that attendance area boundary changes are tough, but the board might find out that could be a solution for one or two of the schools.

Board vice president Arlene Silveira and board member T.J. Mertz also said that the controversial idea needed to be thoroughly vetted.

“We have to have the discussion about boundaries — we have to show that we looked at it, and what that showed,” said Silveira, who also added that internal transfers at popular schools like Van Hise Elementary and Hamilton Middle School needed to also be examined as a way to relieve crowding.

Board member Mary Burke said making the proposed investment in the eight schools could ultimately save the district the cost of having to build schools, especially if the district sees enrollment gains in the future as schools improve.

Related: Might low income student distribution be addressed? and Effective school maintenance spending?

Howard Blume:

Los Angeles teachers overwhelmingly expressed “no confidence” in L.A. schools Supt. John Deasy in the first vote of its kind in the nation’s second-largest school system.
In the weeklong referendum that ended Wednesday, 91% of the participating teachers expressed disapproval of Deasy, with about 17,700 of the union’s more than 32,000 members casting ballots, the teachers union announced Thursday.
The superintendent called the vote “nonsense” even before knowing its outcome, and a group of civic leaders rallied to Deasy’s defense. But United Teachers Los Angeles said it would now press more assertively against Deasy initiatives that have made the city a crucible for education debates playing out nationwide.
“It’s important to look at the data and impossible to ignore the results,” union President Warren Fletcher said.
Deasy has angered some teachers by pushing for evaluations that include the use of student standardized test scores. He also has tried to limit job and seniority protections and to speed up the dismissal of teachers accused of serious misconduct or ineffectiveness in the classroom.

Gayle Worland::

The analysis comes on the heels of a 2012-13 budget for the district proposed by Nerad that would increase Madison School District property taxes by 4.1 percent. Nerad’s $379.3 million budget did not specify a funding source for his high-profile plan to raise the achievement levels of low-income and minority students, originally estimated to cost $105.6 million over the next five years.
The report outlines several options for doubling the district’s maintenance funds, such as using money already within the district’s budget, increasing the property tax levy, using current and future equity reserves, long-term borrowing, or asking voters to approve a referendum that would allow for annual increases for maintenance.
The district spends $4.5 million, or 2.77 percent of its budget, on facility maintenance, which the committee recommended increasing by $4.2 million.
That would amount to $566 per pupil, according to the report. By contrast, the Monona Grove school district spends $1,825 per pupil on facility costs; Sun Prairie schools spend $1,787; and Waunakee spends $1,443, the report said.

Related regarding the most recent Madison School District maintenance referendum: Madison School Board member may seek audit of how 2005 maintenance referendum dollars were spent.

Barry Adams:

Beloit has the state’s highest unemployment rate at 12.5 percent, and property values in the Beloit School District averge $198,000 per student — one of the lowest ratios in the state.
But on Tuesday, voters in the southern Rock County school district approved one of the costliest referendums in state history.
The $70 million plan to renovate most schools in the district, build a middle school and a pool, is being called historic for the city. It will not only benefit education but, according to supporters, serve as a catalyst for economic development.
“From a marketing aspect, I shuddered every time I saw the figures. It’s a heck of a lot of money,” said Randy Upton, president of the Greater Beloit Chamber of Commerce, which publicly supported the plan. “By providing the facilities, it’s going to make people proud and make people look at Beloit as a place to live and invest.”
Beloit wasn’t alone Tuesday in its referendum success.

Barry Adams:

The owner of a $235,000 home would see an average increase in their taxes of $95 a year for the next five years. Starting in 2017, property taxes would decrease because other debt will be retired, according to district officials.
The referendum, one of just three in the state on Tuesday, includes a second question asking for $150,000 a year for operating costs. The primary question asks for a long list of improvements, including $25.3 million for work at the high school and $3.2 million at the middle school.
A new fieldhouse at the high school, including new locker rooms and a fitness center, would provide space for gym classes and practices, and more seating for sporting events and graduation.
When the main gymnasium was built more than three decades ago, there were 600 students at the high school compared to 1,150 today. The project would bring the school in line with other Badger Conference facilities in Waunakee, DeForest and Stoughton.
“Parents interview us now. They just don’t move to the district,” Superintendent Brian Busler said. “This is all part of the entire puzzle that parents are looking for.”

Oregon’s current budget spends $48,672,281 for its 3604 students in the 2011 budget. ($13,505/student). Madison’s current budget spends $14,858.40 per student.