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Addressing Our Financial Needs
in the North Lake School District

While the North Lake School District is high performing and a point of pride in our community, we also face significant financial challenges. Most of these challenges are out of our control and largely related to the state’s school funding system.

To avoid significant cuts and sustain high quality educational programming, the Board has approved an operational referendum question that will appear on the ballot Tuesday, April 2, 2024. If voters approve the referendum, the district will be able to exceed its revenue limit by $850,000  per year for the next four years.

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Wisconsin schools operate under a state-imposed revenue limit that restricts the amount of money that they can receive through state general aid and local property taxes. 

  • The North Lake School District does not receive enough revenue to adequately fund its educational programming. Our district’s state-imposed revenue limit per pupil ranks in the bottom 10% of all Wisconsin school districts.
    Revenue Per Pupil Chart
    North Lake: $10,350.12 per pupil

Source: LEGISLATIVE FISCAL BUREAU STATE OF WISCONSIN JANUARY 2023 according to this LFB report

  • The needs of our students have increased dramatically, especially in the areas of special education and mental health.
  • Costs for transportation and utilities continue to increase due to rising inflation as do other expenses that are out of the district’s control.
  • DPI indicates that it does not see the funding formula for school changing in the foreseeable future.
Referendum Meeting Flyer

Community Survey Results (Fall 2023) 

  • 80% agree that the district’s most urgent needs must be addressed now. 
  • 63% would support “yes” on a referendum question to increase the revenue limit by $850,000 a year for four years.
  • 81% agree that they are satisfied with the North Lake School District.

Our community will vote on an operational referendum on Tuesday, April 2, 2024. An approved referendum will enable the district to exceed its revenue limit by $850,000 per year for the next four years.

  • These funds would cover ongoing costs for the day-to-day operation of the district. They will also address the increased costs for items like transportation, utilities, and special education, as well as the district’s reduction in state aid.
  • If the referendum is approved, the district will be able to avoid significant cuts in staffing and student programming in years to come.

Proposed Tax Impact

*Total Levy with an Approved $850,000 for Four Years*

Proposed Tax Impact

*With an Approved $850,000 for Four Years*

Tax Levy Without Impact Chart

Proposed Tax Impact

*With Fund 39 Long-Term Debt Paid On 1-24-24*

Tax Levy With Impact Chart
What are the district's financial needs?

The North Lake School District faces significant financial challenges. Most of these challenges are out of our control and largely related to the state’s school funding system.

Wisconsin schools operate under a state-imposed revenue limit that restricts the amount of money schools can receive through state aid and local property taxes. Our district does not receive enough revenue to adequately fund educational programming and we do not control the amount of aid that we receive from the state. 

The district’s revenue limit per pupil ranks in the bottom 10% of all Wisconsin school districts.

Revenue Per Pupil Chart
North Lake – $10,350.12

Additionally, the needs of our students have increased dramatically, especially in the areas of special education and mental health. These are expenses for state and federal mandated services for which the district receives inadequate funding. Costs for transportation and utilities continue to increase due to rising inflation as do other expenses that are out of the district’s control.

The Wisconsin Department of Public Instruction indicates that it does not foresee the funding formula for school funding changing anytime soon.

What has the district done to address these needs so far?

The North Lake School District made just under $500,000 in expense reductions in the 2023-2024 school year alone, including: 

  • Eliminated 2-Full Time Teacher Positions
  • Reduced Speech & Language Pathologist Position
  • Eliminated Band Director/Teacher Position 
  • Eliminated Consortium Band Experience
  • Eliminated Lakers Manufacturing Experience Teacher Position 
  • Eliminated School Secretary Full Time Position
  • Eliminated Lunchroom Supervisor Position
  • Reduced Special Education Aide Positions/Hours/Benefits
  • Reduced Special Education Director Position 
  • Reduced Curriculum Development Coordinator Position
  • Eliminated & Reduced Staff Benefits 
  • Eliminated Transportation for Advanced Classes at AHS 
  • Increased Student Fees
  • Increased Transportation Fees for Open Enrollment Students
  • Accepted North Lake Education Foundation & Private Donations 
  • Froze Staff Budgets for Supplies
  • Attracted New Open Enrollment Students

The Board has needed to use the district’s fund balance to cover $903,398 over the past six years. This dollar amount does not include the 2023-2024 estimated budget deficit of $249,201.

Using the fund balance for operating expenses is not sustainable, leads the district to engage in short-term borrowing, threatens the district’s good bond rating, and violates policy. 

What is the proposed solution to address these needs?

The Board has approved an operational referendum question for voters to consider on Tuesday, April 2, 2024. If voters approve the referendum, the district will be able to exceed its revenue limit by $850,000 per year for the next four years.

These funds would cover ongoing costs for the day-to-day operation of the district. They will also address the increased costs for items like transportation, utilities, and special education, as well as the district’s reduction in state aid.

If the referendum is approved, the district will be able to avoid significant cuts in staffing and student programs over the next few years.

How would an approved referendum affect property taxes?

An approved referendum would have an estimated property tax impact of $1.06 in year one*, $1.00 in year two, $0.93 in year three, and $0.88 in year four for every $1000 of assessed property value.

A homeowner with a house assessed at $400,000 would see a property tax increase of about $424 in year one, $400 in year two, $372  in year three, and $353  in year four. 

*this does not take into consideration the early Fund 39 pay off.

How much revenue would an approved referendum generate for the district?

$850,000 per year in needed revenue for the next four years would be generated.

What would the dollars from an approved referendum pay for?

These dollars would:

  • Help avoid further significant cuts in staffing and student programs
  • Reinstate a .5 FTE Intervention Teacher ($5,287.86) and .3 FTE Tech Ed Teacher ($15,193.53)
  • Address increased costs for transportation, utilities, and special education
  • Balance the annual budget and avoid deficits in daily operations 
How will the early payoff of Fund 39 affect the propery tax rate?

Fund 39 is Debt Service Fund. This fund is used to account for transactions for the repayment of debts issued that were either: authorized by School Board resolution before August 12, 1993, or approved by referendum.

The District levied in November for the final two payments of a debt issue in March of 2015 allowing the balance pay off of this debt issue in January of 2024. This Fund 39 debt issue resulted from a ballot question voters approved in November 2014. Funds were used for HVAC upgrades, parking lot resurfacing, new flooring, and other facility improvements.

 This early payoff will reduce the tax impact of an approved referendum. The actual numbers: Approved $850,000 minus Fund 39 levy of $487,111 equals $362,889.

Impact of Fund 39 Pay Off Table

What has been the district's tax levy history over the past 10 years?

Tax Levy History Chart

The North Lake School District’s tax levy rate has been on a steady decline since the 2015-16 school year. In fact, the levy rate has decreased by about 47% since that time, from $7.11 per $1,000 of assessed property value to $3.77 per $1,000 of assessed property value in 2023-24.

What is the district's mill rate history?

Mill Rate History Chart

What is the district's Fund 10 balance history?
Definition of Fund 10 General Fund 
This fund is used to account for all financial transactions relating to the district’s current operations, except for those required to be accounted for in other funds. 
 
Fund 10 can be compared to your personal savings account.
 
Here is the district’s Fund 10 history: 
Fund 10 Balance History Chart
If approved by voters, will the new referendum expire?

Yes. The proposed operational referendum is a non-recurring, four year referendum. Non-recurring means that it would expire at the end of the 2027-2028 school year.

Why is an operational referendum necessary?

To maintain our level of student success, the district must maintain its current level of instruction focusing on small class sizes, providing a full range of academic programming, and retaining its experienced staff.

Without the passage of an operational referendum, the state’s funding formula does not work well for our school district. As a result, the responsibility to fund our schools is on local property taxpayers. 

A referendum is necessary to maintain North Lake School’s high quality education  focusing on a solid curriculum, preserving small class sizes, and retaining experienced teachers. 

Sustain operational costs and provide residents with the high quality school district they expect.

Are other school districts seeking additional funding through operational referenda?

Yes. Over the last decade, more than half of the school districts in Wisconsin have received similar approval from voters via successful referenda to exceed their revenue limits. The North Lake School District is not alone in facing these types of financial challenges. 

Has the district seen a drop in the amount of equalized state aid over the past decade?

Yes. 
Equalization Aid History Chart

 

When is election day?

Residents will vote on the referendum question during the spring general election on Tuesday, April 2, 2024. 

Where can I vote?

District residents can vote at their regular polling location on Tuesday, April 2, 2024. You can find voting and registration information at https://myvote.wi.gov/

Can I vote early?

Registered voters in Wisconsin may vote early by mail by requesting an absentee ballot. You can make your request by visiting https://myvote.wi.gov/en-us/Vote-Absentee-By-Mail

Residents may also vote in-person before election day. For more information on this option, please visit https://myvote.wi.gov/en-us/Vote-Absentee-In-Person

What is the exact question that will appear on the ballot?

Voters will see the following question on their ballots on Tuesday, April 2nd:

Shall the North Lake School District, Waukesha County, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $850,000 per year for four years, beginning with the 2024-2025 school year and ending with the 2027-2028 school year, for non-recurring purposes to sustain operational costs?

  • Community Members, please attend one of our informational meetings (1/23, 2/21, 2/22, or 3/20).
  • Parents, ask questions on behalf of your children to learn more. 
  • Stakeholders, contact your local legislators regarding the challenges with the state school funding model for districts like ours. 
  • Families, talk to your neighbors while getting the word out about North Lake School District’s financial need.
School District Consolidation Pros and Cons

Pros of Local Control

Cons of Consolidation

Preservation of property valuesExcessively long bus rides
Upholding academic excellenceStandardization of curriculum
Accountability of school board membersMinimal financial incentive from state
Protection of community safety & securityIncreased staffing needs & continued building maintenance
Our Great K-8 Fact Sheet

Top Eight Reasons To Keep Our Great K-8!

1. Student bus rides would exceed 45+ minutes. The average bus ride for a North Laker is currently 20 minutes despite the district’s largely rural geography. Consolidation could increase time on buses anywhere from 45-50 minutes for K-4 and 1.5 hours for 5-8.
2. Consolidation efforts tend to be facility driven. If one K-8 district building is in bad disrepair, then it might make sense to consolidate with another district that has been properly maintained. However, the majority of Arrowhead Area feeder schools are in great shape and no one district could house the student population of another. Consolidation would NOT eliminate any of the K-8 facilities therefore would NOT produce any cost savings. The facility maintenance and staffing needs to remain with consolidation.
3. There is little state financial incentive to consolidate. Districts might receive an additional $150 per pupil under consolidation for a five year period. Yet, this minimal increase would not be adequate considering all the additional costs such as transportation.
4. Research shows that academic achievement is higher in smaller K-8 districts than in larger K-12 systems. North Lake School continues to earn the highest rank on the state report card.
5. Community safety and security would remain a priority with an operational school in community boundaries.
6. Property values would decrease without a successful school system in the community boundaries. Taxes could also increase in a larger K-12 system.
7. The K-12 curriculum is standardized and might not match the community values.
8. Local control is lost if the K-8 districts consolidate.

Annual Meeting

Information from our Annual Meeting can be found here: 

ANNUAL MEETING

Planning for the Future Slideshow
Community Meeting Presentation Slideshow
Baird Presentation on School Funding in Wisconsin
Understanding Equalized Versus Assessed Home Value

School Funding Reform

Why It Matters

School funding impacts opportunities for every kid, adult, and community.

What Is It?

What do we mean when we talk about “school funding reform?”

Why a School Referendum?

Learn why schools in Wisconsin put questions on the local ballot.

How To Fix It

Specific changes to the school funding system can work for our state.