De Soto Operational Referendum

Referendum Message for Families, Community & Staff

Dear De Soto Area School District Families, Community Members and Staff:

The De Soto School Board will be placing an operating referendum question on the November 5, 2024 ballot and Board members wanted to make sure to communicate the facts to the community that necessitate this referendum. Informational meetings will be scheduled prior to November 5, 2024. Additional information will be  provided and also placed on the District’s De Soto Referendum Updates web page.

The Board would like to share a few key points:

• Revenue limits, established in 1993, have not increased at the same level as inflation. Costs for schools, like everyone else’s, have gone up…food, supplies, contracted services, personnel, health care, insurances, and equipment…all have increased. In addition, the District’s revenue limit for the 2023-24 budget year is approximately $170,000 lower than the School District’s revenue limit was 10 years ago.

• Since 2014, per pupil state aid has been frozen at $0 dollar increase for 6 of the past 10 years.

• The district has continually managed its operating costs under State-imposed revenue limits, increasing inflation, and increasing service expenses for special education students while providing a quality educational experience for all students, and building a fiscally sound financial position.

• Unless something would change at the state level with school funding, it is apparent that state allocations will not be sufficient to maintain the level of programming the district currently offers our students and families.

• The fiscal year for schools runs July 1 through June 30. Passing the referendum in November allows for appropriate budget planning for the 2024-25 school year. 

• Approving the Operational Referendum will allow the district to maintain the current level of educational programming for our students, fund related operating expenses, and address inflationary adjustments.

• Is De Soto alone in needing community support for schools? No. Inadequate state funding has resulted in over 100 school district's placing referendum questions on the November 5, 2024 ballot.

Sharing De Soto’s Story:

• The District has not asked the community to support an operational referendum for more than 20 years. The first single year operational referendum was in 2000 for $280,000 to remove a fund balance deficit. The second single year operational referendum was in 2003 for $71,000 to purchase property.

• The District has also held two facility referendums, one in 2010 ($2,585,000) for remodeling and improvements financed with the Federal Stimulus Act which reimbursed the district for 100% of the interest costs. The other facility referendum was held in  2013 ($4,950,000) for building additions, renovating and remodeling of the De Soto Middle/High school.

When did the School Board begin discussions about the need for an operational referendum?

The School Board began discussions during the 2022-2023 school year regarding the need for an operational referendum. The Board determined the District was fiscally able to meet educational and operational objectives and goals through the 2023-2024 school year. The Board deferred the operational question until April 2, 2024 allowing for an updated analysis of state funding, inflationary impacts, declining enrollment trends, ESSER funding expiration (September 2024). That referendum failed and now the Board is asking for a three year non recurring referendum on November 5, 2024. 

How has the District been financially responsible?

• Since 2000 the District’s commitment to developing a strong general fund balance has seen the fund balance grow from a $280,000 deficit to $3,042,051 eliminating the need for short-term borrowing in the past 4 years.

• The district has also set aside $151,000 for capital facility projects in Fund 46.

• The District prepaid outstanding debt to save interest costs.

• District staff continually apply for grants with the District being awarded a $500,000 FEMA Grant, and grants for food service, AG/FFA, art financial awards, eRate, REAP, and Kohl Teacher Fellowship awards along with many other smaller grants that support classroom and field trip education.

• New lighting systems have been installed in all schools to reduce energy costs.

• Roofing projects have eliminated leaks and related internal damage, and quality maintenance has extended the life of school building infrastructure.

• Over the past 12 years the district has reduced staff by 16 positions including teachers, support staff, administration and auxiliary staff.

• The District's fiscal responsibility resulted in the De Soto Area School District receiving an A+/Stable Outlook in August of 2023 from S&P Global Rating, a national independent bond rating company.

• It is also noteworthy that the District's property tax levy for the 2023-24 school year was the lowest tax levy in the past 10 years. 

Are the salaries and wages of employees the reason for the funding issue?

No. Of the six Vernon County School Districts (Cashton, De Soto, Hillsboro, Kickapoo, La Farge, and Viroqua), the De Soto Area School District  has the lowest teacher/certified staff base pay.  

What will the November 5, 2024 Referendum money be used for? 

The Referendum dollars will be used to continue to provide high quality education

and offer options and opportunities for students and families. The money will be used for the day to day operations of the school district and to maintain current educational and co-curricular programs.  The referendum will allow the district to balance its budget as they keep up with fixed cost increases and the decrease in state funding. A passed referendum will also allow the district to address unexpected budget/maintenance issues/situations as they arise. 

What happens if the November 5, 2024 Referendum does not pass?

• Over the next three school years, the School Board would have to prepare a budget with an anticipated $5,237,000 budget deficit. Over 5 million dollars of budget cuts will need to be made over the next three school years. 

• The School Board would need to prioritize reductions in district-wide operations, consider reductions in staffing and/or not replacing staff, reduce course options and field trips all impacting student academic opportunities, defer the technology replacement cycle for students and staff, defer curriculum purchases, postpone school building maintenance and improvement projects, reduce/eliminate co-curricular activites and reduce transportation.

•  Reduce the fund balance which would weaken the district’s sound financial position. 

• A failed referendum means significant and impactful cuts across the school district.

Your time is greatly appreciated in reviewing this information. For additional questions regarding the referendum contact Mike Richie Interim Superintendent:

Email: mrichie@desoto.k12.wi.us

Phone at 608-648-0101

Thank you and Go Pirates!