Frequently asked Questions regarding the November 4th Referendum!!
1. What is the referendum?
The referendum asks voters to approve on-going authority for the school district to spend $5 million over the revenue cap in 2009-10, $4 million in 2010-11 and $4 million in 2011-12.
2. The gap for 2009-10 is estimated to be $8.1 million. What else will the district do to close that gap?
It will allocate up to $2 million of the anticipated $4 million increase to the general fund balance to the operating budget in 2009-10. The rest of the gap for 2009-10 will be covered by budget reductions and/or efficiencies.
3. What other finance changes has the Board approved?
The district will reduce the Fund 80 fund balance by $2 million which reduces the tax levy. The district will also use Fund 41 to spread the accounting for maintenance spending over several years (as permitted by state law) to reduce the amount of negative aid.
4. What the will this cost me?
Overall the impact will be to decrease the school portion of the property tax. (This referendum will NOT affect the 2008 property tax bill – the school portion will go down $40 for the average home.) However in 2009-10 (taxes paid either Dec. 2009 or in Jan and July 2010), there will be an increase of approximately $27.50 on the average priced home in Madison, $250,000. Thereafter, taxes will decrease $27.50 (2010-11) and $100 (2011-12) from the level in 2008-09 on that $250,000 home.
Alternative answer to #4:
Overall the impact will be to decrease the school mil rate. However, it is difficult, at this time, to predict what will happen to the value of housing in Madison over the next 3 to 4 years. As noted above, if housing stays flat for the entire period, the school property tax for the average priced home ($250,000) will decline overall.
If that house increases in value about 4% in 2010 and in 2011, the total tax increase over these three years will be $91.50 ($27.50 in 2009-10, $43.10 in 2010-11, and $20.90 in 2011-12). It is important to note, however, that school taxes on a $250,000 home will decrease by $40 on the 2008 property tax bill (this year). So even with the 4% increase in valuation mentioned above, the school property tax bill for 2011-12 (three years from now) will only be $51.50 higher than it was on the last bill (2007). That means that many of us will STILL BE PAYING LESS IN 2011 THAN WE WERE IN 1994!!! PLEASE VOTE TO SUPPORT OUR STUDENTS – it really won’t cost us much!
These estimates do not take into account the amount that the school levy credit, provided by the State of Wisconsin, will reduce the individual tax payer’s school property tax because that number is impossible to estimate. The school levy credit is a “below-the-line” property tax credit that directly reduces the school portion of property tax bills every year in Wisconsin. The State determines the amount of that credit late in each year. So your actual school property tax bill will be lower than the amounts noted above!
5. What about “negative” aid?
The figure of $27.50/average priced house includes the negative aid factor, as do the figures for the subsequent years. Negative aid is part of the state funding formula which penalizes districts with high property value per pupil. Madison, by this measure, is relatively wealthy; it has the 80th highest property wealth per pupil.
6. Why does the district need this additional money?
The combination of two state laws – the revenue cap and the QEO – creates a structural deficit for the district every year. The revenue cap allows the district to increase its budget by a fixed amount ($172 in 2008-09) which means the overall budget can increase by about 2.5% per year. However, the state also sets the level of compensation at 3.8% for teachers (who are the most numerous employees). In practice the district has generally settled with MTI for packages that cost the district about 4% (this amount includes salaries, health insurance and all other benefits). The difference between the allowable budget increase of about 2.5% and the required staff cost increase of at least 3.8% creates a structural deficit each year.
7. Why is this referendum for 3 years?
Three years will give the district time to develop a new strategic plan (in conjunction with the community) and to then align expenditures with the goals identified.
8. What will happen if the referendum doesn’t pass?
The district will have to begin the painful process of identifying budget cuts that will do the least harm to students. Among the items which are likely to be considered are:
- increased class size at elementary, middle and high schools
- fewer alternative programs
- possibility of school closing
- reduction in custodial positions
9. I don't have any school age children, why should I care?
Good schools are central to a thriving community. Good schools = good home values = good investment. As Madison's Mayor recently stated, ". . . good schools are vital ingredients in healthy neighborhoods." A strong school system is a critical factor in maintaining or increasing property values and in drawing new businesses to Madison which bring money and opportunities to the area. Strong schools keep students engaged in learning and involved in the school community. Madison is a wonderful community in which to live and studies have shown that Madison schools consistently rank as one of the top reasons why people want to live here.
10. What can be done about high property tax bills?
Present laws make it difficult for school districts to meet their mandated requirements. We need to reform the way schools are funded and shift the tax burden to a more equitable base. When you vote in November find out where the candidates stand on school finance and vote for those who support fixing this broken system.
11. Where do I vote, how do I register?
For information visit http://wicip.org/lwvdc/voting.html, or call the League of Women Voters at: 608.232.9447.
Know the Real Deal!
We ARE Grumpy when not enough of us grasp what a bargain our fine schools have been!
The percentage of our property taxes that support public schools has actually gone down since 1994!) Explore the REAL STORY about school property taxes!
As Grandparents United for Madison Public Schools, we still believe that good public education is the heart of our American democracy! Dedicated educators and a supportive community spell wonderful learning opportunities for Madison children. We can no longer sit around and grouse.
Want More information?
Join us in voting for the referendum on November 4th and become a member of GRUMPS! To join, email supporters@madcitygrumps. If you have questions about the referenda, email info@madcitygrumps.com
