HOW WILL THE DISTRICT WORK TO INFORM OUR STAKEHOLDERS ABOUT THE REFERENDUM?
The District aims to provide all stakeholders the relevant information needed to make an informed decision regarding the upcoming operational referendum.

The District is committed to providing our stakeholders — Including parents, students, staff, and community members — with relevant and crucial information surrounding the upcoming operational referendum.

We want to ensure everyone has the details they need to make a well-informed decision when voting. Through frequent communications and community meetings, we are highlighting key information on the needs and challenges facing our schools, where additional funding would be allocated, and the potential impacts on educational programming and facilities. We encourage everyone to review materials available, ask questions, and engage in thoughtful dialogue.

An informed public is essential for setting priorities and charting a course for the future success of our schools and students. This open process will lead to the best outcome for supporting effective teaching and learning district-wide.

WHAT IS AN OPERATIONAL REFERENDUM?
An operational referendum allows Wisconsin school districts to temporarily exceed state revenue limits to cover rising education costs if approved directly by the voters in the community.

An operational referendum is a method for Wisconsin school districts to exceed state-imposed revenue limits by obtaining direct approval from local voters. Revenue limits restrict how much funding school districts can raise through state aids and property taxes to cover operating expenses.

When budgets are tightened, but student needs and education costs continue rising, many school boards opt to hold an operational referendum to ask taxpayers for permission to collect additional property taxes above the caps for a temporary time period.

The referendum will specify the dollar amount sought each year and the number of years it will be in effect. The funds can only be used for recurring school operation costs like staff salaries/benefits, utilities, transportation, supplies and equipment. If voters in the community approve the operational referendum, property tax bills would increase accordingly during those years to provide the extra designated funding specifically to the school district. By state law, the additional revenue cannot be used for debt repayment or building construction — only ongoing operational expenses necessary for quality day-to-day education services.

WHY IS AN OPERATIONAL REFERENDUM NEEDED AT THIS TIME?
Since 1994, Wisconsin school districts have relied on state aid and property taxes to fund operations, but revenue limits haven't kept pace with rising costs, forcing over 80 percent of school districts to utilize temporary operational referendums approved by voters to maintain student services.  CFAUSD is now in that same situation.

Since 1994, Wisconsin school district have been primarily funded through a combination of state aid and local property taxes, with revenue limits capping district funding.  These limits, set by the state budget, haven't kept pace with rising costs due to frozen state funding and high inflation...and they've caught up with CFAUSD. Click here for a visual graphic.

As a result, over 80 percent of Wisconsin school districts have turned to operating referendums, temporary tax increases approved by voters, to maintain operations. Referendums have become increasingly essential with 83 percent passing since 2018 as school districts face painful funding gaps.

Public school districts are seeking community support to avoid drastic cuts as state funding stagnates...and it's CFAUSD's turn to ask.  Unless Wisconsin increases and reforms school funding, operating referendums will remain necessary stopgaps allowing school districts to preserve student services and outcomes with voter-backed investments.

WHAT IS THE OPERATIONAL REFERENDUM QUESTION FOR CFAUSD STAKEHOLDERS TO BE ASKED ON APRIL 2, 2024?

"Shall the Chippewa Falls Area Unified School District, Chippewa and Eau Claire Counties, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $2,500,000 per year for three years, beginning with the 2024-2025 school year and ending with the 2026-2027 school year, for non-recurring purposes consisting of operational and maintenance expenses to maintain staffing levels, programs, services and facilities?"

WHAT IS THE ESTIMATED TAXPAYER COST PER YEAR IF THE OPERATIONAL REFERENDUM IS PASSED BY THE CFAUSD STAKEHOLDERS?

It is projected that CFAUSD taxpayers would pay an additional five (5) cents per one thousand ($1000) of assessed property value per year. To give our stakeholders a sense of what that would look like:

• $100,000 of property = $5.00 per year
• $250,000 of property = $12.50 per year
• $500,000 of property = $25.00 per year

IF THE OPERATIONAL REFERENDUM IS PASSED, HOW WILL THE FUNDS BE UTILIZED BY THE DISTRICT?

If approved by voters, the April 2 referendum would provide critical funding to sustain the excellent educational opportunities currently available to our students. The $2.5 million per year over three years, beginning in 2024-25, would prevent reductions beyond right-sizing staffing levels to match declining enrollment trends. 

While we will continue making necessary staffing adjustments, the referendum funds ensure we can maintain competitive staff compensation and benefits without cutting back on academic and extracurricular programming.

This is not a request for additional funding. Rather, it brings in revenue to meet rising operational expenses amid high inflation. The funds will help the District effectively maintain facilities and assets to support long-term financial stability. 

Most importantly, the referendum protects the opportunities we provide to prepare our students for career, college, and life success, despite tightening budgets. We aim to make responsible reductions where we can without negatively impacting the quality instruction and services our community expects.

IF THE OPERATIONAL REFERENDUM FAILS, HOW WILL THE DISTRICT ADDRESS THE PENDING FINANCIAL CONSTRAINTS AND WHAT ARE THE LIKELY REPERCUSSIONS?
If the April 2 referendum does not pass, CFAUSD will need to make $1.9 million in reductions next year (2024-25) and significantly reduce staff, programming, services, compensation, and benefits across the District over the next three years to account for the estimated deficit of $7.5 million that is looming.

If the referendum does not pass, CFAUSD would need to make difficult budget cuts to programming, staffing, and services.

Common approaches and their impacts include:

• Reducing staff: Laying off teachers, administrators, support staff. 

• Increasing class sizes and reducing academic and extracurricular offerings. This also hurts staff morale and retention.

• Retaining and recruiting highly qualified staff. Without being able to remain competitive in a tight job market, we will not be able to hire the best and brightest educators and support staff. This would have a negative impact on our current programs and staff morale.

• Reductions in programs and services offered: Eliminating academic courses, student support services, maintenance services,  and equipment upgrades. Students would lose enrichment and broader learning opportunities.

Ultimately, failing to pass the referendum would force CFAUSD into a downward spiral of cutting staff, programs, and services that directly harms educational quality, student outcomes, and staff retention. These cuts would undermine CFAUSD's ability to attract and retain talented educators. Students would see fewer course offerings, activities, and resources. Achievement gaps may worsen. Local communities must weigh these consequences ahead of voting down much-needed funding.

How were stakeholders gauged surrounding the topic of "referendums" in recent years?

A survey was conducted in late 2022, asking stakeholders within our district if they would support additional funding via an operational referendum. The results of that survey can be found below:

COMMUNITY SURVEY RESULTS & ANALYSIS

Check out the FAQs section at the top right of this page for more insights!

Please contact:

Jeff Holmes, Superintendent, at holmesje@chipfalls.org

or

Chad Trowbridge, Business Manager (Finance Questions), at trowbrcm@chipfalls.org