Madison's November 4th school referendum - What does it mean?
A three year recurring referendum to exceed the revenue caps in the following amounts
2009-10: $5 million (M) - budget shortfall is projected at $8.1 M
(see below for details)2010-11: $4 M – budget shortfall projected to be $4.4 M
2011-12: $4 M – budget shortfall projected to be $4.3 M
We ARE grumpy, ESPECIALLY when we worry about the eroding resources for public education for our grandchildren and all Madison children.
Property Tax Implications
Here is the real implication for the average home owner:
The property tax increase for the owner of the average Madison home ($250,000) will be:
$27.50 on the 2009 property tax bill (mil rate = 10.03)
In the following two years (2010 & 2011) school property taxes on that $250,000 house will actually GO DOWN by:
$27.50 on the 2010 (mil rate = $9.81)
and about $100 in 2011 (mil rate = $9.51)
See ‘Alternative Answer to #4’ in the FAQs section to view the effect of an annual 4% increase in assessment values upon the property tax impact.
MMSD administrators are using a new strategy (Fund 41) employed by 50 other Wisconsin districts to lessen the property tax burden (see “Mitigating the Tax Impact” below).
Closing the 2009-10 Budget Gap ($3.1 M)
- Use half the un-audited surplus in District fund balance ($2.0 M)
- Reduce unallocated staff positions by 10: used for unanticipated enrollment shifts ($600,000)
- Other reductions in various budgets throughout District ($400,000)
Mitigating the Tax Impact
The administration is using two strategies to lessen the property tax impact:
- Reduce the equity fund balance in Fund 80 (this Fund supports community-serving activities such as Madison School Community Recreation and the District library at the Doyle building) from $2.2 M to $200,000. The $2 M will reduce the school levy in 2009-10.
- Move $7.6 M currently being spent annually for maintenance that extends or enhances the service life of MMSD buildings to Fund 41. There are two benefits to this move: a) the public can more easily see the expenditures because they will be in a segregated fund; b) the expenditures can be amortized over time and therefore, the state will pay a greater proportion of the costs.
These two strategies will result in lower school property tax bills in the second and third years of this referendum.
Why a Recurring Referendum?
A recurring referendum allows the District to permanently increase its budget by the amount approved for each year ($13 M after three years). If the referendum was non-recurring after three years, the $13 M would go away and the projected deficit for 2012-13 would be $13 M, plus the projected deficit for that specific year (now projected to be $4 M). A recurring referendum allows the District to have a much smaller deficit to manage in 2012-13.
Total impact on the Madison Taxpayer
- This referendum will have NO impact on the 2008 property tax bill.
- For owner of average-priced home ($250,000), 2009 property tax impact is $27.50 (less than a DIME per day)!
- Actual tax impact will vary based on property's assessed value
- From 1994 to 2007, the school property tax on average-priced home has increased less than 11% ($207) while average priced-home has increased 124% in value
Vote for this referendum on Tuesday, November 4!
See “Frequently Asked Questions” about the referendum for more information
