MPS will ask city voters this spring to raise taxes, back $252 million referendum

Rory Linnane, Milwaukee Journal Sentinel
·5 min read

Milwaukee Public Schools leaders are asking voters to raise city property taxes to ultimately provide the district with up to $252 million in additional annual funding.

Milwaukee School Board members voted Thursday to pose the question to voters with a referendum on the April 2 election ballot. They said the funding is necessary to maintain operations amid rising costs.

"We can’t let our public school system fail," Jilly Gokalgandhi, vice president of the school board, said.

If approved, the Milwaukee property tax rate would rise by about $2.16 per $1,000 of property value. For a $200,000 home, that would be an increase of about $432.

Most board members voted in favor of placing the referendum on the spring ballot, with board member Aisha Carr abstaining and board member Darryl Jackson voting against it. Jackson, newly elected last year, said he didn't have enough information to make a decision and wanted to see more "checks and balances."

"There hasn’t been enough transparency in my opinion on a lot of different issues, especially when it comes to finance," Jackson said.

Carr said she abstained because while she believes the district should be better funded, she wanted to push for that at the state level and see more “difficult questions” for MPS about how funds are being spent. Other board members said they have fought for years at the state level and were supporting a referendum now because lawmakers have not heeded their calls.

Marva Herndon, president of the school board, said the lack of funding from state lawmakers has been purposeful. She asked, "How many years are we supposed to keep getting kicked in the face?"

"For many of us, we have fought the state for far too many years," said Herndon, who said she has been making trips to Madison for over a decade. "I still haven't stopped, and I probably never will until I take my last breath."

At the meeting Thursday, over a dozen MPS teachers, administrators and representatives of the Milwaukee Teachers Education Association urged board members to put the referendum on the ballot to avoid cutting programs, closing schools or increasing class sizes.

“Our students deserve to come back each fall knowing there are no cuts to their schools and classrooms," said Quinton Sampson-Wood, a physical education teacher at Auer Avenue Elementary School.

People applaud as the Milwaukee Board of School Directors vote to put a referendum on the spring ballot, asking voters to raise taxes for more school funding, on Thursday at the MPS Central Services Building in Milwaukee.
People applaud as the Milwaukee Board of School Directors vote to put a referendum on the spring ballot, asking voters to raise taxes for more school funding, on Thursday at the MPS Central Services Building in Milwaukee.

Why did MPS turn to a referendum?

MPS leaders say they are facing a financial crisis. Many other districts have turned to referendums in recent years because of similar hardships.

One reason: school funding in Wisconsin has fallen far behind inflation. For 15 years, state lawmakers have kept caps on school funding and have not increased those caps to keep pace with inflation. If they had matched inflation, MPS officials estimated the district would be getting over $210 million more every year.

School districts are also contending with a competitive labor market and the end of pandemic-related federal relief dollars.

The MPS budget for this school year avoided cutting school staff positions by banking on hundreds of positions going unfilled. In a presentation Thursday, MPS officials estimated the district is facing at least a $200 million budget shortfall next year.

Without a successful referendum, MPS Chief Financial Officer Martha Kreitzman said the district could have to cut staff, freeze salaries, close schools, eliminate specialty programs, reduce mental health supports, reduce transportation, delay building repairs, or delay updates for educational materials and technology.

“I can’t imagine any public school district surviving this type of cut," said MPS school board member Henry Leonard. "I see this as very existential.”

What is a referendum?

A referendum is a question on a ballot. School districts in Wisconsin use referendums to ask voters for permission to raise property taxes to provide more school funding, exceeding caps set by the state.

School districts across the state are increasingly relying on referendums to keep their schools operational. A report from Forward Analytics found that 82% of school districts in the state have called for a referendum in the past three decades.

Marva Herndon, Milwaukee Board of School Directors president, makes remarks in support of a referendum to raise taxes for more school funding, on Thursday at the MPS Central Services Building in Milwaukee.
Marva Herndon, Milwaukee Board of School Directors president, makes remarks in support of a referendum to raise taxes for more school funding, on Thursday at the MPS Central Services Building in Milwaukee.

How much money would MPS get from the referendum?

If approved by voters, MPS would be allowed to increase revenue by $140 million in the 2024-25 school year. The amount would rise over each of the following school years by an additional $51 million, then $47 million, and finally another $14 million in the 2027-28 school year.

The amount would stop rising after the 2027-28 school year, topping out at $252 million. The district could continue receiving that amount each year thereafter.

It would be a significant amount for the district, which is running a $1.5 billion budget this school year to educate about 65,000 students across 156 schools. However, the district may still need to reduce spending: even with an additional $140 million next school year, MPS wouldn't fill its estimated $200 million budget hole.

The plans call for MPS to use the funds for "sustaining educational programming" including: career and technical education programs; attracting and retaining certified educators; and improving art, music, physical education and language programs.

The Milwaukee Board of School Directors discuss whether to put a referendum on the spring ballot, asking voters to raise taxes for more school funding, on Thursday at the MPS Central Services Building in Milwaukee.
The Milwaukee Board of School Directors discuss whether to put a referendum on the spring ballot, asking voters to raise taxes for more school funding, on Thursday at the MPS Central Services Building in Milwaukee.

How much more would Milwaukee property owners pay?

For this school year, the city property tax rate rate for schools was $7.94 per $1,000 of property value. For a $200,000 home, that's a tax of $1,588.

If the referendum passes, the estimated city property tax rate for schools next year would be $10.10 per $1,000 of property value — coming out to $2,020 on a $200,000 home.

While the district would continue to collect additional funds in the following years, MPS officials estimate the tax rate will level off as state funding picks up.

When was the last MPS referendum?

Milwaukee voters previously approved a referendum for MPS in 2020, with support from 78% of voters. The district will continue collecting $87 million annually in perpetuity as a result of that referendum. MPS has used those funds for recruitment, increasing salaries, and funding teaching positions in kindergarten, music, physical education, art and other specialties.

Its last referendum, in 1993, was rejected by voters. It asked for a $366 million bond issue for new buildings and maintenance.

This article originally appeared on Milwaukee Journal Sentinel: MPS will ask Milwaukee voters to raise taxes in spring 2024 referendum