Pulaski School District has 2 referendums on November ballot. Here's how they might impact taxes.
GREEN BAY — The Pulaski School District is asking voters to approve a $69.8 million capital referendum and an $8.5 million operational referendum this November for school renovations and increased staff salary and benefits.
What does that mean for voters, and what do you need to know?
Here's a breakdown of the referendums, what they would fund and what it might mean for your taxes.
What's the difference between a capital and operational referendum?
Anything on your ballot that isn't about a candidate running for office is considered a ballot measure. A referendum is a ballot measure that allows voters to approve or reject a specific proposal, according to the state's Legislative Reference Bureau.
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In the case of school districts, referendums typically have to do with money. There are multiple kinds of referendums in Wisconsin, but for school district funding there are only two: capital and operational.
The Pulaski School District is asking voters to approve one of each.
A capital referendum is when a school district asks voters if it can borrow money, usually in the form of bonds, to pay for a specified purpose. Usually, but not always, capital referendums are for construction or facility maintenance projects.
A capital referendum is also known as a "referendum to issue debt." If you hear the terms being used interchangeably, they're the same thing.
The second kind of school funding referendum is operational; it's often phrased as a "referendum to exceed the district's revenue limit."
In Wisconsin, school districts are limited in the amount of funding they have access to by "revenue limits." Revenue limits are state-imposed caps on how much school funding can be generated via property taxes and state aid.
If state aid to a school district increases, property taxes go down, but the district's revenue remains the same. That's why districts must go to referendum if they want additional spending dollars.
An operational referendum allows the district to exceed the revenue limit by generating additional dollars through property taxes, on a recurring or nonrecurring basis.
In Pulaski's case, the district is hoping to exceed its operational revenue limit by $1.5 million for the 2023-24 school year and then by an additional $100,000 every year for the next five years.
What would that look like, if the referendum were approved? For the 2024-25 school year, the district would be able to exceed its revenue limit by $1.6 million and $1.7 million for the following year, capping out at $1.9 million by 2027.
In total, the operational referendum would cost $8.5 million.
What is the money going toward?
The increase in the operational budget would, in large part, go to supporting increased staff salaries and benefits. The district approved the full 4.7% inflationary salary increase allowed by law this year in an attempt to keep its staff salaries competitive, the district said.
Pulaski teachers, on average, make $73,763 in combined salary and benefits, which is the lowest of all other districts in Brown County, according to data from the Wisconsin Policy Forum.
After the first two years, a portion of the increase in the revenue limit would go to fund staff and operational costs for new spaces built through the capital referendum. No more than a combined $200,000 a year would go to those expenditures.
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As for the capital referendum, each of the seven schools in the district would get renovations or new construction, according to Superintendent Allison Space.
But there are three main projects the capital referendum would fund that would address overcrowding at three schools. The district plans for expansions at both Sunnyside and Hillcrest elementary schools and an expansion of the Technology Education space at Pulaski High School.
At Sunnyside Elementary School, one floor of the school is below ground, which means that some students only get to see natural light at recess. Under the proposed plans, the school would get an outdoor courtyard in the center of the school to provide light to students throughout the day.
Current classrooms would be renovated, and a new addition would give the school over 10 new classrooms, a larger cafeteria space and more bathrooms for students. Bus and parent pickup and dropoff locations would be rerouted for smoother transitions.
Hillcrest Elementary, which was over capacity by more than 50 students last year, would also get a makeover. The school would get two additions providing a new gym, art and music rooms, nine additional classrooms, a cafeteria and more storage.
Without the capital referendum, music class at Hillcrest will continue to be taught in the gym and staff members without offices will keep using storage areas and electrical rooms for work space.
At Pulaski High School, the Technology Education department is outgrowing its space. The woods, welding and engine labs would be renovated with additions to all three sections. There would be space added for auto lifts, machining and residential construction equipment.
For preliminary project plans, visit www.pulaskischools.org/business/projects.
Would taxes go up for the Pulaski School District?
The short answer? Most likely, yes.
Last year's tax rate for the district, known as the mill rate, was $6.32 per $1,000 fair market valuation of property.
Here's what you could expect the tax rate to be, depending on whether one, both or neither of the referendums pass:
Capital referendum passes: $1.28 increase to $7.60 per $1,000 of property value
Operational referendum passes: 58 cent increase to $6.90 per $1,000
Both pass: $1.86 increase to $8.18 per $1,000
Neither passes: The current rate of $6.32 per $1,000 fair market valuation of property would remain
For a home with a fair market value of $200,000, a homeowner could expect to pay $1,636 in taxes to the district if both referendums pass.
Why does the district need this money now?
The district cites the overcrowding at Hillcrest and Sunnyside as one of the main reasons for needing the capital referendum. Its capital improvement budget of $256,000 and its facilities budget of about $900,000 aren't enough to address the needed renovations and expansions, the district said.
As for the operational referendum, a combination of economic and funding factors are squeezing district finances.
Record inflation, frozen revenue caps and lagging state funding are causing the district to stretch its finances further. The district's revenue limit hasn't changed since the last biennial state budget, locking it into 2019 spending levels despite inflation pushing costs up.
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While state school funding increased under the current 2021-23 budget, the revenue limits remained the same. That translated to a property tax cut for homeowners but no additional revenue for districts.
To keep up with inflation and maintain competitive salaries, the district says it needs additional operating revenue.
Why can't the district use pandemic relief funding?
Like most districts in Wisconsin, Pulaski got federal and state relief aid to help address the costs of lost learning and disruptions during the pandemic. This money is generally referred to as Elementary and Secondary Emergency Relief programs or ESSER funds.
Pulaski got about $4.2 million in state and federal COVID-19 relief dollars, but that money has already been allocated for operational purposes, according to the district. Plus, the ESSER funding could only be spent on specific budget items and initiatives, such as interventions to get kids caught up from lost learning.
In short, the ESSER money can't be used for building improvements.
How long will it take to pay off the capital debt?
Because a capital referendum is a referendum to issue debt, the district would have to pay back the $69.8 million loan it wants to take out.
The district has a preliminary timeline of paying off the debt in 20 or 21 years, although it hopes to pay it off earlier.
It paid the 2013 referendum off in eight years when it was originally scheduled to be paid back in 15, saving taxpayers money on interest.
Are other districts going to referendum?
Yes. In Brown County, the Green Bay School District is asking voters to approve a capital referendum, and the Denmark School District is putting both a capital and an operational referendum on the ballot. Statewide, there will be 81 referendum questions, with some districts seeking both capital and operational funding.
When will voters decide?
The referendum is a part of the Nov. 8 general election where voters will decide on the state's next governor, one of Wisconsin's two U.S. senators and state-level representatives.
The latest you can register to vote is in person at your polling place on Election Day. For a list of voter deadlines for the upcoming election, visit myvote.wi.gov, scroll to the middle of the page and click the "Wisconsin Election Deadlines" box.
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You can also visit myvote.wi.gov to start the voter registration process and find your polling place.
For those wondering what their ballot might look like when they go to vote in November, here are the referendum questions you can expect to see on your ballot:
Pulaski School District Exceed Revenue Limit Referendum - Question 1
"Shall the Pulaski Community School District, Brown, Oconto, Shawano and Outagamie Counties, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $1,500,000 for the 2023-2024 school year, by $1,600,000 for the 2024-2025 school year, by $1,700,000 for the 2025-2026 school year, by $1,800,000 for the 2026-2027 school year and by $1,900,000 for the 2027-2028 school year, for non-recurring purposes consisting of compensating and providing benefits to teachers and staff, maintaining programs and services, and operating facilities?"
Pulaski School District General Obligation Bonds Referendum - Question 2
"Shall the Pulaski Community School District, Brown, Oconto, Shawano and Outagamie Counties, Wisconsin be authorized to issue pursuant to Chapter 67 of the Wisconsin Statutes, general obligation bonds in an amount not to exceed $69,800,000 for the public purpose of paying the cost of a school facility improvement project consisting of: construction of additions, renovations and safety improvements at Hillcrest and Sunnyside Elementary Schools; construction of a Technical Education addition and renovations at the High School; district-wide building systems, capital maintenance and site improvements, accessibility updates and renovations; and acquisition of furnishings, fixtures and equipment?"
Danielle DuClos is a Report for America corps member who covers K-12 education for the Green Bay Press-Gazette. Contact her at dduclos@gannett.com. Follow her on Twitter @danielle_duclos. You can directly support her work with a tax-deductible donation at GreenBayPressGazette.com/RFA or by check made out to The GroundTruth Project with subject line Report for America Green Bay Press Gazette Campaign. Address: The GroundTruth Project, Lockbox Services, 9450 SW Gemini Dr, PMB 46837, Beaverton, Oregon 97008-7105.
This article originally appeared on Green Bay Press-Gazette: How Pulaski schools' November referendums might impact your taxes
