Budget 2024 - Considering a Referendum

Referendums are a government body's way of increasing its revenue from local taxpayers above and beyond limits set by the state legislature. 
There are two types of referenda, operational and capital.

Operational referenda provide the District with money to pay salaries and implement or pay for programs that do not require building anything. An example of a service provided by a past operational referenda is South Milwaukee's 4-year-old kindergarten program. After voters approved the 2018 referendum the School District was able to provide all-day 4K classes at each of the elementary schools.

Capital referenda provide one-time funds for building projects. For example, in 2004 voters approved a referendum that allowed the District to borrow money to build the South Milwaukee High School and the Performing Arts Center. The bonds that financed that project were paid off early in 2022.

After a brief introduction from the Superintendent, residents will be able to visit several stations set up around the commons to meet with experts on topics ranging from school finance to fundraising efforts for the ongoing Field Surface Improvement Program. There will also be an opportunity to meet the School Board, pose your questions or give an opinion, including a station where you can leave your feedback about a potential referendum.

No. In the spring of 2023 while deciding on the preliminary budget, the option of a referendum was discussed as a future option for solving the District's budget gap. However, referenda are specific questions that are placed on the ballot in the spring or in the fall elections.
 

The Rocket Fuel for Thought event is designed to take feedback from the community to first decide if there is any interest in the community to raise additional local revenue for the school district, and if there is, what, if any, (above and beyond simply addressing the District's revenue shortfall) additional services the community may want to see provided.
 

If those conditions are met, language for the ballot will be crafted and presented to the School Board for consideration.

The state's recent biennium - or two year budget - increased South Milwaukee's per-pupil revenue limit by $342 and increased the special education reimbursement rate from 30 percent to 33.3 percent.

While that increase helped reduce the District's budget shortfall from $1.5 million to $1.3 million, additional revenue is needed to close the expenditure-revenue gap. 

To adequately fund South Milwaukee schools and others across Southeast Wisconsin, compensate for record inflation and make up for a 0-dollar per-pupil increase in the previous biennium, the state would have had to pass a $1,510 increase in the per-pupil revenue limit and increase special education reimbursement to 60 percent. 

The football field has been virtually unusable for the past 20 years. With the incessant flooding and uneven grade of the field, it was a constant safety hazard and was only used for varsity Football games.

With the $1 million Bucyrus  Foundation donation and $600,000 contribution from Launching a Legacy, the decision was made to solve this safety problem once and for all and install new turf and storm water mitigation systems. 

The investment has already proven worthwhile as the band, soccer, cross country, and other co-curricular functions have been able to use the field immediately after torrential rain. 

Furthermore, since this is a one time capital cost, it is being funded through the Capital Improvement Fund, Fund 46, and is not reflected in the financial burden of operating revenue (which is Fund 10 - the general fund). 

Elementary and Secondary School Relief (ESSER) Funds are one time, non recurring funds which are intended to be used to solve one time costs associated with the Covid-19 pandemic. These funds will go away in their entirety at the end of the 23-24 school year.

SDSM has used these funds to ensure clean air quality in all of our buildings by purchasing in class air purifiers and adding hospital-grade HVAC units at E.W Luther and Lakeview Schools. They have also been used to fund staff, curriculum, and resources to ensure learning loss recovery.

Due to the district’s state-imposed revenue limit, the Board has limited options. If the Board cannot find a solution the community can support, the district may need to make additional and deeper cuts to programs and services, impacting the quality of education students receive.