- District
- Referendum
-
Planning for the Future
Our Financial Needs
Proposed Solution
Frequently Asked QuestionsINFORMATION SESSIONS
Learn more about the proposed operational referendum and ask questions at these upcoming events:
March 13, 2024
Time: 5:30 p.m.
Location: Purdy Elementary IMCPlanning for the Future of 1Fort Schools
Operational Referendum on the Ballot Tuesday, April 2nd, 2024
The #1 question we've received is, how can we go to referendum for $6.5 million for three years WITHOUT an increase to the tax rate. Here's how-
Maintaining a stable tax rate has been a priority for the district. To accomplish this for this year with the sunset of the previous operational referendum, the district prepaid $7 million in debt in 2023-24. We are now asking to shift $6.5 million of those dollars for operations outlined in the graph below. This allows us to go to referendum for $6.5 million dollars without increasing the tax rate for the district’s portion of the tax bill.
Find more information about debt defeasance, as well as our full set of frequently asked questions below.
The School District of Fort Atkinson is a big point of pride in our community, serving students and families well over the years. The opportunities we offer and the people who deliver them help take our students to the heights of achievement.
While we have schools our community is rightfully proud of, our district faces significant financial challenges. Most of these challenges are out of our control and largely related to the state's school funding system.
To address these challenges, the School Board has approved an operational referendum question that will appear on the ballot Tuesday, April 2, 2024. If voters approve the referendum, the district will be able to exceed its revenue limit by $6.5 million per year for the next three years.
WHAT HAS CHANGED SINCE LAST YEAR:
-
$3.3M in reductions of 37.7 FTE through attrition and retirements, and through active layoffs
-
The previous operational referendum sunsetted in April, 2023
-
The new operational referendum will sunset in 3 years (if approved); non-recurring only
Our Financial Needs
All Wisconsin school districts must operate under a state-imposed revenue limit, restricting the amount of money they can receive through both state 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 The funding formula used to calculate the limit was created more than 30 years ago and is outdated.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, the School District of Fort Atkinson and many districts statewide do not receive adequate funding for student programs and services.
Any change to the state funding formula is highly unlikely in the near future, according to the Wisconsin Department of Public Instruction.
In addition to reduced support from the state, costs are rapidly increasing. This is especially true in areas like mental health and special education. The district does not receive enough funding to provide state- and federally mandated services for our students. We’ve also seen cost increases for transportation, supplies, equipment, and utilities, among other areas.
Proposed Solution
On Tuesday, April 2, 2024, our community will vote on a proposed solution to these financial challenges. If voters approve the operational referendum, the district would have permission to exceed its revenue limit by $6.5 million per year over the next three years.
With a continued priority for student safety and wellbeing, approved referendum funds would:
-
Preserve current programs, services, and staffing relative to enrollment
-
Maintain current programs and course offerings
-
Retain high-quality teachers and staff
These funds would ensure the district continues as a preferred educational option in our region.
It’s worth noting that the School Board recently lowered the property tax levy rate by $1.31 for the 2023-24 school year, to $9.61. That represents a 12.21% decrease and is the lowest mill rate in a decade for the School District of Fort Atkinson. The School Board is committed to maintaining a stable property tax levy rate moving forward.
An approved operational referendum would not increase the property tax levy rate of $9.61 per $1,000 of assessed property value in our community.
Frequently Asked Questions
This is the question that will be asked of voters on April 2nd, 2024
-
-
[NEW] How do private school vouchers impact the need for the operational referendum?
Given the current level of State funding for public schools in Wisconsin, the need for an operational referendum would still be in place with or without private school vouchers.
Private school vouchers are a small factor related to the need for public school operational referendums.
-
[NEW] What is the yearly cost to educate a student in the School District of Fort Atkinson?
Per the most recent DPI statistics and public data, the School District of Fort Atkinson spent $16,749 per pupil (this figure does not account for the $3.3 million in operating reductions made last year).
-
[NEW] How does the School District of Fort Atkinson’s per-pupil expenditure compare to area districts?
Using the most recent DPI data, Fort Atkinson’s per pupil expenditure ($16,749) is very close to the State of WI average per-pupil expenditure ($16,124), and is comparable to area schools in its per-pupil expenditure (these figures do not account for the $3.3 million in operating reductions made last year).
-
[NEW] How much money does the School District of Fort Atkinson receive from the State of Wisconsin per pupil?
Per most recent DPI statistics and public data, the School District of Fort Atkinson received $8,217 per pupil.
-
What is meant by “operational” in Operational Referendum?
Operations include everything necessary to run a school district, such as, but not limited to: paying staff, providing benefits, utilities, bussing, insurance coverage, supplies, technology, and other related items.
-
In its simplest form, what does this operational referendum do?
The upcoming operational referendum provides the district permission to use funds differently.
For more information, please see the question, $6.5m each year? How is there not a tax rate increase? -
$6.5m each year? How is there not a tax rate increase?
Maintaining a stable tax rate has been a priority for the district. To accomplish this for this year with the sunset of the previous operational referendum, the district prepaid $7 million in debt in 2023-24. We are now asking to shift $6.5 million of those dollars for operations outlined in the graph below. This allows us to go to referendum for $6.5 million dollars without increasing the tax rate for the district’s portion of the tax bill.
Find more information about debt defeasance below.
-
If the District can use $7m to prepay debt, why don’t they just use that money instead of asking for more?
Currently, the State legislature does not authorize capital funding (including debt repayment) to be used for operational expenses. The upcoming operational referendum would give the district permission to use some of those funds for operations for the next three years.
-
How much did the Board save taxpayers paying debt early (debt defeasance)?
The district, by paying off debt early this year, saved over $3.4 million in future interest payments.
-
Does the $6.5 million referendum get added to the District’s base revenue?
No. As a non-recurring referendum question, it expires after three years.
The referendum would increase the School District of Fort Atkinson’s revenue by $6.5 million for each year on top of each year’s base revenue. The operating referendum does not get added to base revenue calculations in subsequent years.
-
If approved by voters, will the new operational referendum expire?
Yes. The proposed operational referendum is a non-recurring, three-year referendum. This means it would expire at the end of the 2026-27 school year unless voters approve a new operational referendum before that time.
-
How are public schools funded?
39.6% of public school funds are generated through local property taxes, and the remaining 60.4% of funds are received from state aid.
-
Will my taxes go up?
We cannot answer that. Individual taxes have many variables, such as fluctuating property value, township/city decisions, and other taxing entities out of our control. What we can control is the district’s tax rate, which will NOT increase with this operational referendum.
-
Why did the board decrease the property tax levy rate if the district is facing financial challenges?
As a result of the past two operational referendums that were not approved by voters, we responded to our community’s call for a reduction in school taxation. To that end, the School Board reduced the overall tax levy by 4.2%. This lower tax rate will remain in place, even if the operational referendum is approved by voters on April 2, 2024.
-
How would an approved operational referendum affect property taxes?
An approved operational referendum would not increase the property tax levy rate of $9.61 per $1,000 of assessed property value in our community.
It’s worth noting that the School Board recently lowered the property tax levy rate by $1.31 for the 2023-24 school year to $9.61. That represents a 12.21% decrease and is the lowest mill rate in a decade for the School District of Fort Atkinson.
-
Will my taxes decrease if the operational referendum does not pass?
The tax levy for the 2023-24 school year has already been set. The final budget and tax levy for the 2024-25 school year will be set by the School Board in October 2024.
-
What would an approved operational referendum provide the district?
If approved, the operational referendum would provide the district with an additional $6.5 million in revenue each year to fund operations for the next three years.
With a continued priority for student safety and wellbeing, approved referendum funds would enable the district to:
- Preserve current programs, services, and staffing relative to enrollment
- Maintain current programs and course offerings
- Retain high-quality teachers and staff
These funds would ensure the district continues as a preferred educational option in our region.
An approved operational referendum would provide this funding starting in the 2024-25 school year. The referendum would expire at the end of the 2026-27 school year unless voters approve a new operational referendum at that time.
- Preserve current programs, services, and staffing relative to enrollment
-
How would an approved operational referendum benefit students?
An approved operational referendum would allow the School District of Fort Atkinson to maintain current programs and course offerings while preserving current programs, services, and staffing relative to enrollment. It would also enable us to continue supporting student mental and behavioral health, which have been growing needs in the wake of the pandemic.
-
What happens if the operational referendum does not pass?
If this operational referendum is not approved by voters, the following options could be available to the School Board:
-
Short-term borrowing to cover operating costs
-
Continued defeasance of debt to maintain a stable tax rate (paying debt early)
-
Further cuts to programs and staffing
- Combination of these options
The School Board could also return to the voters in November 2024 as the final opportunity to provide operational funding for the 2024-25 school year.
-
-
What has been the district’s tax levy history over the past 10 years?
The School District of Fort Atkinson’s tax levy rate has been on a steady decline since the 2013-14 school year. This past year, the School Board lowered the property tax levy rate by $1.31 for the 2023-24 school year, to $9.61 per $1,000 of assessed property value. That represents a 12.21% decrease and is the district’s lowest mill rate in more than a decade.
-
What has the district done to address these needs so far?
In addressing the district’s financial needs, board members and district leaders have done what our families do in these situations: cut costs.
Last year, the district made $3.3 million in budget reductions. About $1.2 million came through staff attrition and restructuring and $2.1 million in cuts, while still maintaining programming for students. In the prior year, we made an additional $540,000 in reductions. We also prepaid debt to save money on interest and invested dollars to care for our facilities.
The board also needed to use the district’s fund balance, or savings account, for another $2.8 million to cover operational costs over the past year. Drawing on the district’s fund balance is not a sound long-term solution, as it can harm the district’s credit rating and make borrowing more expensive in the future.
While we are very proud of our financial discipline, the district has made significant expense reductions in recent years and we worry about harming our schools and students over the long term if this trend continues.
An operational referendum is necessary to avoid further cuts, maintain our current programs and course offerings, retain high-quality teachers and staff, and provide residents with the high-quality school district they have come to expect.
-
What reductions or cost savings have been implemented in the past two years?
As fiscal stewards to the community, the district seeks to keep costs low with ongoing evaluation of programming, and alignment of staffing to current enrollment, while meeting students’ complex needs.
2022-2023 - $540,000 in reducing 7.0 FTE through attrition (not filling vacant positions)
2023-2024 - $3,300,000 in reducing 37.7 FTE through attrition and retirements, and through active layoffs
Many job responsibilities and duties have been reallocated to existing staff.
-
If the operational referendum is approved, will the positions cut last year be restored?
No.
Find more information about the impact of the cuts below in the question, What has been the impact of previous budget cuts?
-
What has been the impact of previous budget cuts?
The budget reductions the district has needed to make in recent years have had a real impact on students, educators, and families. These impacts include:
-
Teachers assigned more classes, with preparation time moved outside of the school day
-
Maintaining programs and offerings with fewer teachers
-
Less support staff in classrooms
-
Meetings and professional learning for teachers moved outside the student day
-
Elementary students moved from resident schools due to staffing reductions
-
Leadership and administrative positions reduced and duties assigned to current administrators (4K, Gifted & Talented, Communications, etc.)
-
-
Why is the district not releasing a list of reductions if the referendum isn’t approved?
The budget shortfall is too large to represent a short list of cuts. If the operational referendum isn’t approved, the Board of Education would be forced to use a variety of strategies to keep the district operational for the 2024-25 school year and beyond.
Given the amount of reductions and restructuring done last spring, further efficiencies within our current systems and programs would be slim, if any.
A failed referendum would likely force the Board of Education to consider any of the following, but not limited to, cost reduction methods: elimination of programs, increase of class sizes, reducing elementary classes, requiring some students to move to a different elementary school, fewer class offerings and electives, re-evaluating staff compensation and/or benefits, reduce student activities, and/or the use of the district’s one-time fund balance requiring short-term borrowing to operate.
All of these methods would be devastating to our vision of offering Fort Atkinson students a comprehensive school experience.
In addition, releasing a list of reductions becomes a referendum specific to those items. The ongoing funding deficit from the State is too large to be resolved with a reduction of specific programs. The deficit impacts all facets of the organization and will impact all services moving forward without an approved referendum.
-
Why does the district need more money if enrollment is dropping?
The reduction in enrollment is not concentrated to one grade level. If enrollment drops by 52 students from one year to the next, it is spread across 13 grades. In this example, the district would receive approximately $624,000 less revenue than the year before. The average decrease per grade level of 4 students would not allow for significant opportunities to reduce expenditures.
The cost to educate a student has increased over time due to many factors including inflation, increased cost of materials, transportation, maintenance, technology, liability insurance, curricular requirements from the State, special education costs, etc.
-
Has the number of students attending private schools increased? Is this why the district needs to go to referendum?
The number of students attending private schools that would have otherwise gone to the School District of Fort Atkinson is similar to previous years. However, with the last state budget, the amount of money associated with each school voucher has increased significantly. This is a contributing factor to the district’s financial needs.
-
Why can’t the district just reduce expenses to balance its budget?
The district has already made millions of dollars in expense reductions to address its financial situation. For the 2023-24 school year, the district made $3.3 million in reductions, including roughly $1.2 million through staff attrition and restructuring and $2.1 million in non-voluntary staff cuts. In the prior year, we made an additional $500,000 in reductions. We did this while maintaining programs and services for students.
The board also needed to use the district’s fund balance, or savings account, for another $2.8 million to cover operational costs over the past year. Drawing on the district’s fund balance is not a sound long-term solution, as it can harm the district’s credit rating and make borrowing more expensive in the future.
Further reductions would have a negative impact on our students, as we would need to begin cutting programs and services. We worry about harming our schools and students over the long term if this trend continues. The time has come to find a sustainable solution to the district’s financial needs.
-
Why doesn't the District just sell some land to provide additional operational funds?
The sale of any property provides one-time funds. Should the district choose to sell a property, it would not provide the recurring funds the District's operations require.
-
What land does the District own?
The school district owns 10 plots of land:
-
The property each of our seven schools occupy (FAMS, FAHS, Crossroads, Rockwell Elementary, Barrie Elementary, Luther Elementary/Administrative Services, and Purdy Elementary).
-
The property to the east of Fort Atkinson Middle School (often referred to as Probst Field). Of note, this parcel is often not usable due to high water from the Rock River.
-
The plot to the west of Madison College (near the digital display board).
-
A plot to the south of the City of Fort Atkinson, consisting of approximately 22 acres. This land was acquired (we are researching by what means, donation or purchase) by the District in 1967. Since that time, the wooded and marshland property has been used for instructional purposes as well as for community use and recreation.
The process for a school district to buy and sell property is complex. If a school board was interested in selling a property, they would need to engage in a process guided by State Statute, which is lengthy.
-
-
Why not close an elementary school?
80% of our budget is related to costs associated with staffing. Current student enrollment requires the staffing we have in place. Closing a building would only save the costs of keeping the building operational.
In addition, we share the city’s enthusiasm as they plan for new developments in Fort Atkinson. Our projections show the capacity of four elementary schools will be needed when additional homes and multi-family residences are established in our community.
Past community feedback has indicated neighborhood schools are a high priority for our community to preserve.
-
Are you working with the city?
Yes. The District and City of Fort Atkinson collaborate regularly on many happenings within our community.
-
Does the district have too many administrators?
No. Our current district leadership staffing is comparable, if not smaller, to surrounding districts of similar size. Administrative positions and administrative support positions have been reduced over the last three years. Like all district personnel, administration has been assigned additional duties from recently eliminated positions. Current administrative positions are essential to meet district needs, as well as Federal and State requirements.
-
Can the district use COVID relief funds to help balance the budget?
The district did receive federal COVID-19 relief funds (known as ESSER) to provide assistance during the pandemic. These funds provided some short-term help, but there were restrictions on how and where they could be used. Per federal requirements, we focused these funds on student safety and wellness.
The ESSER funds will expire at the end of the 2023-24 school year.
-
Would future reductions be necessary if the operational referendum is not approved?
Yes. Without support through an operational referendum, the district will likely need to make further cuts to staffing, programs, and services for students. While the numbers are preliminary, a budget reduction of about $4.8 million would likely be necessary in the 2024-25 school year alone. An additional $1.7 million reduction would likely be necessary in 2025-26 and another $1.5 million reduction in 2026-27.
-
Does the $6.5 million referendum compound over 3 years (ex: $6.5m yr 1, $13m yr 2, $19.5m yr 3)?
No. The referendum would increase the School District of Fort Atkinson’s revenue by $6.5 million for each year of the three-year referendum.
-
What is debt defeasance?
Debt defeasance is the process of paying down debt earlier than originally planned. It can be thought of as an additional mortgage payment. This referendum is to ask the community’s permission to shift those dollars into operations.
Districts use debt defeasance to keep their tax rate stable for taxpayers. Like a personal budget, sharp increases or declines in expenses are difficult to plan for.
-
Are other school districts seeking additional funding through operational referendums?
Yes. Due to the outdated state funding formula and a lack of aid to schools from the state legislature in recent years, increasing numbers of Wisconsin school districts are turning to their communities to address financial challenges.
In fact, over 80% of school districts statewide have needed to seek operational referendum support locally. The School District of Fort Atkinson joins many other districts statewide in facing these challenges.
-
Why are you only asking for $6.5m with this operational referendum, when you asked for $8m last time?
The failed operational referendum last spring required the district to make significant reductions. The $6.5m amount currently requested is a lesser amount as it reflects these recurring reductions.
-
Didn’t we just pass a capital referendum?
Yes, voters approved a capital referendum for the School District of Fort Atkinson in November 2022. The funds generated through that referendum focused on making secure entry sequencing improvements, maintenance and mechanical projects, and traffic flow improvements at our high school.
A capital referendum is different from an operational referendum in that funds may only be used for renovations, new construction, and other physical facility improvements. We are grateful for the support of our community for the November 2022 capital referendum.
An operational referendum allows a school district to increase its state-imposed revenue limit to provide funding for general operations, including programs and services for students. On the ballot April 2, 2024 is a proposed operational referendum. -
Is there a limit to how many times the school board can go to the voters with a referendum?
School districts are permitted to go to the voters with 2 questions per calendar year.
-
When is election day?
Residents will vote on the operational referendum question during the spring general election on Tuesday, April 2, 2024.
-
Where can I vote?
District residents may vote at their regular polling location on Tuesday, April 2, 2024. You can find voting and registration information at https://myvote.wi.gov/.
-
Can I vote early?
Registered voters in Wisconsin may vote early by mail by requesting an absentee ballot. You can make your request by visiting https://myvote.wi.gov/en-us/Vote-Absentee-By-Mail.
Residents may also vote in-person before election day. For more information on this option, please visit https://myvote.wi.gov/en-us/Vote-Absentee-In-Person. -
What is the exact question that will appear on the ballot?
Voters will see the following question on their ballots on Tuesday, April 2:
-
What are the different parts of my tax bill?
The School District of Fort Atkinson has created this guide to help explain the various parts of your property tax bill and what they mean.
-
If I have questions or feedback, whom can I contact?
Join us at one of our information sessions at 5:30pm on February 21st at Fort Atkinson High School or March 13th at Purdy Elementary School. You can also send feedback to referendum@fortschools.org or contact one of the Board of Education Members directly:
School Board Members:
-
Kory Knickrehm, President || kory.knickrehm@fortschools.org
-
Amy Reynolds, Vice-President || amy.reynolds@fortschools.org
-
Robynn Selle, Treasurer || robynn.selle@fortschools.org
- Chris Rogers, Clerk || chris.rogers@fortschool.org
-
Rhona Buchta, Member || rhona.buchta@fortschools.org
-