Referendum 2022

No, all referendum projects came in on time and on budget. In fact, we were able to expand the project scope because of favorable bids and additional funding.

Specifically, we were able to add artificial turf on the Sun Prairie West multipurpose field to better accommodate physical-education and athletics in all weather conditions. Additionally, we were also able to enlarge the pool area for more seating for competitive events.

At the Bank of Sun Prairie Stadium, we were able to secure a larger scoreboard because of a donation. A number of additional smaller enhancements/updates were added as a result of favorable project costs.

The 2019 referendum money, cannot by law, be used for anything other than what was outlined in the referendum question, i.e. it cannot be used for ongoing operating expenses, which is the current situation we are facing.

We are having another referendum because the state has not increased its funding, nor has it kept up with inflation, and this is not projected to change anytime soon.  We are proactively seeking these monies to fill the gap to continue to maintain programs and services to support our students.

The need established in this operating referendum is independent and separate from past referenda. This referendum is a result of a lack of state funding and not a result of building and remodeling schools.

The state funding challenge is not a recent phenomenon.  In 2011, Wisconsin spent $1,166 per student above the US average. By 2020 (the most recent data available), Wisconsin has dropped to $754 below the US average. Since then, two years have passed with no per pupil increase while other states have increased funding. This has not allowed school districts to keep pace with inflation.

In Wisconsin, recent state funding that has been labeled as "school funding" has been through state equalization aid, but it has not increased the overall revenue limits imposed on districts. State equalization aid does not fund programs and services - it offsets taxes. At this point, there is nothing to suggest any changes in state funding priorities.  This referendum is about filling the gap between state funding and inflationary cost increases.

The state biennial budget is usually not completed until June (for the fiscal year beginning on July 1). This is too late for the District's 2023-24 budget and planning for the 2023-24 budget will begin in December 2022.  Any reductions will need to be realized and completed before June 2023.  Additionally, districts are only allowed to ask referendum questions when a regularly scheduled Spring or Fall election is already taking place.

In November 2022 there will be a heavy turnout election.  We want as many electors as possible to cast their vote on the referendum. This is the community's school district and we want everyone's voice to be heard.

Without the funds sought through the referendum, we would need to cut approximately $7M from the 2023-24 fiscal year budget.  This would require dozens of employees to be laid off. Some of these employees have contracts that require specific notice to be given according to state statute.  Asking the question in November gives us time to create a process to make the necessary reductions if the referendum does not pass. It is important that we handle any reduction process in a way that honors and respects our workforce.  That takes time.  An April referendum would not provide the time necessary to complete a reasonable and responsible reduction process.

The referendum's proposed amount is $9M per year.  This will be phased in over three years as shown on the graph below.  If passed, the District will increase funding by roughly $3M per year for three years and then maintain that $9M increase for each year beyond. A recurring referendum was selected since it avoids the creation of a funding cliff. Since the bulk of the referendum will be used for recurring compensation costs, a non-recurring referendum would not be a good fit.

If the referendum is not approved on November 8th, the District will develop a process for making significant staffing and budget reductions for the 2023–2024 school year and beyond. We will need to reduce our largest expenses, including salaries, benefits, and purchased services.

In 2019, our community passed a capital (building) referendum to build and remodel schools.  That money cannot be used for ongoing expenses. 
In 2019, the community also passed an operating referendum dedicated solely to the costs of operating and staffing the new Sun Prairie West High School. 
The need established in this 2022 referendum is independent and separate from past referenda.  This referendum is a result of a lack of state funding and not a result of building and remodeling schools.

The governor announced funding for Wisconsin schools from the federal American Rescue Plan Act. Sun Prairie’s amount of approximately $756K will be helpful in reducing the $4M budget deficit for 2022–2023. An additional allocation is targeted toward student mental health. This is an area of focus that our community identified in our updated strategic framework refresh. In short, these allocations help, but they are one-time funding that help bridge our current budget until more permanent funding is obtained through a referendum.

In a capital referendum, funds are borrowed and paid back with
interest. This type of referendum is most often used for building projects.
In an operating referendum, there are no interest payments because
there are no borrowed funds. The referendum amount is levied each year (pay as you go) and is more cost-efficient for the community.

RESOLUTION AUTHORIZING THE SCHOOL
DISTRICT BUDGET TO EXCEED REVENUE LIMIT
BY $9,000,000 FOR RECURRING PURPOSES

BE IT RESOLVED by the School Board of the Sun Prairie Area
School District, Dane and Columbia Counties, Wisconsin, that the
revenues included in the School District budget be authorized to
exceed the revenue limit specified in Section 121.91, Wisconsin
Statutes, by $9,000,000 beginning with the 2022–2023
school year, for recurring purposes consisting of expenses
related to maintaining class sizes, student services, and staff
compensation, providing for substitute teacher coverage,
increasing mental health services for students, and ongoing
safety and facility maintenance.