Why is the De Pere School District asking voters for a $23.75M referendum? Here's what to know

DE PERE — The De Pere School District is asking voters to approve a $23.75 million operational referendum this spring for the first time since 2005.

What does that mean for voters, and what do you need to know?

Here's a breakdown of the referendum, what it would fund and what it might mean for your taxes.

What is an operational referendum?

In Wisconsin, there are two types of referendums for school district funding: capital and operational. An operational referendum allows a school district to increase its tax levy beyond its revenue limit.

Revenue limits are state-imposed caps on how much school funding can be generated via property taxes and state aid. If state aid to a school district increases, the amount a school district can levy for property taxes decreases, but the district's revenue remains the same.

That's why districts must go to referendum if they want additional spending dollars above the revenue limit.

In De Pere's case, the district is hoping to exceed its revenue limit by $4.75 million for five years, totaling $23.75 million.

What would the De Pere referendum money go toward?

The funding will be used to maintain the district's current operations, according to Superintendent Christopher Thompson.

Over the five years, a large portion of the operational referendum dollars will cover employee salaries and benefits. About $900,000 will go toward compensation the first year, growing to $3.84 million by the fifth.

"We are very proud of the results we've achieved (as a district)," Thompson said. "But we know that to maintain and grow our staff continuously, we have to keep this in mind."

The De Pere School District didn't give staff the full inflationary salary increase allowed last year, opting for a 3% increase instead of 8%.

About $700,000 each year will go to funding student and school technology: buying new devices, updating projection technology in classrooms, covering software licenses and updating their cyber security infrastructure.

Cybersecurity attacks are not uncommon for school districts. Neenah School District in the Fox Valley had a ransomware attack in 2022.

Starting in the 2027-28 school year, $1 million would be set aside for building maintenance and renovations to handle the district's growing student population.

To reduce some of its 90-minute bus routes, $350,000 would be spent to get six new routes to cut ride times for students.

About half a million would be spent on curriculum for each of the five years. The district, along with others in the state, are having to make instructional changes to reading as required by the state's new literacy law.

The district is also looking to hire three academic interventionists: one at the middle school and two at the high school. About $300,000 would go toward their compensation. The high school currently doesn't have any interventionists, Thompson said, and some older students still haven't recovered from pandemic learning loss.

"This allows us to address learning gaps created by the pandemic because we're not seeing the learning gaps in the young kids anymore. We're now seeing it in students that are aging up," he said.

The district would also use $75,000 to continue offering mental health services that were previously covered by a grant and $50,000 on utilities.

Why does the De Pere School District need this money now, and why $23.75 million?

The district is facing a budget deficit of $3 million next school year that will then increase to $6.8 million by 2028-29. The average annual budget deficit for the next five years is $4.75 million.

De Pere has had a budget deficit for the past four years and has used its federal pandemic relief dollars to close the gaps. But those funds run out by next fall.

"That's left us in a lurch," Thompson said.

At the same time, the state hasn't increased revenue limits to keep pace with inflation since 2009. That has districts across the state turning to voters to handle rising costs.

Unlike many other school districts in Wisconsin, De Pere is experiencing enrollment growth. It's had to cap open enrollment into the district because it doesn't have enough physical space to accommodate more students. That's come at cost to the district.

A large part of public education funding is based on how many students are enrolled. Closing off open enrollment, the district has left over $400,000 on the table.

The district has already taken cost-cutting measures, but they aren't enough to shore up its deficit without cutting staff.

For example, public school teachers can only get cost of living increases consistent with the consumer price index for that year. Last year, that was 8%. While neighboring districts, like the Green Bay School District, gave staff the full 8% inflationary increase in salaries, De Pere only approved a 3% increase.

That's because the district couldn't afford the full increase. Over 80% of the district's expenses come from salaries and benefits, according to Thompson.

What will be the referendum's impact on De Pere's property taxes?

The district's tax rate is $5.67 per $1,000 of equalized property value. A resident with a $250,000 home would pay $1,418 in property taxes.

Equalized property value is different than assessed value and is calculated by multiplying the assessed value by an adjustment factor computed by the Wisconsin Department of Revenue. Equalized property value is designed to create comparable value between properties, regardless of local assessment practices, according to the Department of Public Instruction.

The referendum would add $1.34 to the tax rate the first year, dropping down to $1.13 by the fifth year.

The new tax rate, if the referendum passes, would be $7.01 per $1,000 of property value. On that same $250,000 house, a resident would pay $1,753, a 24% increase.

Even with the increase, the district's tax rate would still be lower than the West De Pere School District, Green Bay School District, Howard-Suamico School District and Pulaski School District.

What will happen if the De Pere referendum doesn't pass?

If the referendum fails, the district says it will have to cut teachers and administrators.

"We would be, at minimally, cutting 10 teachers in the district as well as two administrators," Thompson said.

That in turn would mean larger class sizes at all schools and limited course offerings at the high school. Bus routes would remain the same with some 90-minute rides.

One-to-one student technology would be cut and current mental health services would also be on the chopping block.

Cuts could also include looking at whether the district can continue offering all of its activities and whether it can offer freshman, junior varsity and varsity options, Thompson said.

"They're not popular decisions. What we're trying to do is maintain," he said.

Where can I get more information?

The district has a webpage dedicated to the referendum, which can be found at www.deperek12.org/. The district is also hosting town hall meetings where residents can listen to a presentation on the referendum and ask questions.

There are virtual and in-person options:

• 4 p.m. March 14. Virtual

• 6 p.m. March 19 at Foxview Intermediate School at 650 S. Michigan St. in De Pere

• 6 p.m. March 20. Virtual

When will voters decide?

The general election is April 2 when De Pere-area residents will vote on not only the referendum but the presidential primary, two School Board members and county level positions.

Here are key dates for registering to vote:

• March 13: Last day for voters to register online or by mail.

• March 29: Last day to register to vote in the clerk's office.

• April 2: Spring general election. Voters can register to vote at their polling location on election day.

To view a sample ballot and learn more about the election, visit https://myvote.wi.gov/en-us/.

Danielle DuClos is a Report for America corps member who covers K-12 education for the Green Bay Press-Gazette. Contact her at dduclos@gannett.com. Follow on Twitter @danielle_duclos. You can directly support her work with a tax-deductible donation at GreenBayPressGazette.com/RFA or by check made out to The GroundTruth Project with subject line Report for America Green Bay Press Gazette Campaign. Address: The GroundTruth Project, Lockbox Services, 9450 SW Gemini Drive, PMB 46837, Beaverton, Oregon 97008-7105.

This article originally appeared on Green Bay Press-Gazette: What to know about the De Pere School District's $23.75M referendum