Why do we need a referendum now?
The mill rate has been steady and hovering around $11.50 for the past few years. In the fall when the mill rate is considered, we look to balance the budget and maintain an adequate fund balance. Both of these factors were true in October, and our debt payments decreased by $210,000 so our school board and administration chose to lessen the tax burden, if only for a year. It is also our intention to lower the mill rate during the referendum, if possible. We have projected estimates for expenses for the following years, but we can only predict our costs. We also have to budget for future years not knowing how our state and federal funding might change. We are hoping to get a piece of the $7 billion surplus at the state level, but it would be irresponsible to budget with those revenue funds in mind. If we receive an increase in state funding, we may be able to drop the mill rate projections for the 2nd and/or 3rd years of the referendum. The district has avoided an operating referendum longer than any other school in SW Wisconsin. In fact, there are only 74 other schools, out of 431, that have held out as long as Barneveld. If the economy and labor markets would have stayed steady, we believe that we could have lasted longer. We did not want to have to ask taxpayers for more. The state has not raised our per pupil aid since the 2019-2020 school year, despite the obvious rise in costs. The state surplus has grown to over $7 billion because the state is inadequately funding its schools and municipalities, laying the burden on local school districts and local government agencies. In essence, the state has chosen to not pay its bills in order to build its savings account. We are hoping for school funding reform in the future, but our focus is on increasing revenue limits, per pupil aid, and special education funding for our immediate needs.
How will you use the referendum money?
Just like you, all of our expenses have increased, everything from supplies to utilities, as well as contracted services. Basically we will be using the referendum money to pay our bills and continue our programs. The state-imposed revenue cap limits our revenue, but not our expenses, so the gap continues to grow. The referendum money will be used to balance the overall budget so our revenue equals our expenses. Our two biggest budget items are salaries/benefits and athletics/activities. If the referendum does not pass, we will look to cut those areas for the biggest impact on the budget. Many of our academic programs and services are mandated, so unfortunately the extracurricular opportunities would be considered. Whether we reduce staff members or programs, the result means fewer services or opportunities for kids. We are proud of the opportunities that Barneveld offers, including courses offered at other schools and career options to explore. The current CPI (Consumer Price Index) is projecting an 8% rate of inflation for July. We have projected an 8% increase in salaries as a max for planning purposes, but we will not determine salary increases until closer to July and certainly not until after the referendum. We are fortunate to co-op with other schools for insurance and our co-op has a 5% cap per year. Other schools are finding much larger insurance increases, so our planning has paid off. This is the final year of the insurance co-op and we will be taking bids to continue with Quartz or switch to another plan. Either way, the insurance co-op usually saves us money.
What happens in 2026 when the referendum money ends?
This referendum will end in 2026, which means we will probably be looking at another referendum in the 25-26 school year. Our hope is that this referendum passes and state funding increases, so we can lower our referendum projections in the 2nd/3rd year for tax payers. If we don't need the money, we will adjust the levy each fall. If we can show that we are continuing to be responsible with tax dollars, adjusting the mill rates for tax payers when possible, we hope the community will have confidence in the next referendum.
What are you building or adding on?
We have no plans to build any additions to our facilities. We hope to be able to properly maintain our current facilities and provide regular maintenance.