Stoughton Area School District Stoughton Area School District ReferendumReferendum

April 2010April 2010

Educating Students for SuccessEducating Students for Success

•ACT recognizes SHS for science achievement

•WI Taxpayer’s Alliance recognizes SASD for continuous improvement in reading and math

•Exemplary music and athletic accomplishments

•Advanced placement class participation tripled

•Improved graduation rate, drop out rate and attendance

•Customer satisfaction indicators improving

Why Are We Here Today?Why Are We Here Today?The school district is facing a cumulative budget shortfall of $8,439,000 over the next four years.

•2010-11: Up to $591,000•2011-12: Up to $1,351,000•2012-13: Up to $2,611,000•2013-14: Up to $3,886,000

The state’s funding formula does not allow the district to allocate enough money for the current 10 year maintenance plan. Upcoming projects require an additional $7,250,000.

•Roofs, parking lots, HVAC, plumbing restoration, etc.

Why Are We Here Today?Why Are We Here Today?School district revenues are restricted by school funding laws put in place in 1993

•Revenue limits

•2/3 Funding

School expenses, often times driven by state and federal mandates or laws, generally increase at a higher percentage than revenue is allowed to grow.

The Facts:The Facts:SASD was a low spending district when locked into revenue limits in 1993. That base has kept SASD one of the lowest spending districts in the state. If SASD had been at the Dane County average revenue limit per student in 2007-08, we would have had an additional 4.4 million dollars.

2007-08 Dane County Revenue Limit Per Student

$7,000$7,500$8,000$8,500$9,000$9,500

$10,000$10,500$11,000

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The Facts:The Facts:All of the districts in the previous chart have passed a referendum to exceed the revenue limit in the last 10 years except Stoughton, Marshall, and Belleville. Other districts passing referenda has caused the gap between SASD and other districts’ revenue limit per student to grow.

Longitudinal History of Revenue Limit Per Member

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10,000.0012,000.00

Fall1993

Fall1994

Fall1995

Fall1996

Fall1997

Fall1998

Fall1999

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Fall2001

Fall2002

Fall2003

Fall2004

Fall2005

Fall2006

Fall2007

Fall2008

Fall2009

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Green Boxes = State Average Blue Boxes = Stoughton

The Facts:The Facts:SASD has the lowest mill rate in Dane County.

2007-08 Dane County Mill Rates

$7.00$8.00$9.00

$10.00$11.00$12.00$13.00

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The Facts:The Facts:SASD does not currently have a maintenance budget large enough to address large upcoming projects in the 10 year maintenance plan.

Funds in the district’s maintenance budget fall under the revenue cap. Any additional money allocated to maintenance needs would need to be taken from other programs or services.

Why Are We Here Today?Why Are We Here Today?On February 15, 2010 the Stoughton Area School District Board of Education approved asking the community two referendum questions on the April 6, 2010 ballot.

The first question will address funds for operational purposes and the second will focus on supporting district maintenance.

What Has SASD Done To Address What Has SASD Done To Address The Financial Problem?The Financial Problem?

In 2005, the taxpayers voted down a referendum to exceed the revenue limit. Since that time, the district has taken various measures to balance its budget.

•Reduced one million dollars of programs and services•Eliminated 68 positions•Closed Yahara Elementary School•Reduced bus routes•Froze school and department allocations•Improved energy efficiency (avoiding $800,000 in costs)•Implemented a four-year-old kindergarten program

What is the First Question on the What is the First Question on the Ballot?Ballot?

BE IT RESOLVED by the School Board of the Stoughton Area School District, Dane and Rock Counties, Wisconsin that the revenues included in the School District budget be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $591,000 for the 2010-2011 school year; by an additional $760,000 (for a total of $1,351,000) for the 2011-2012 school year; by an additional $1,260,000 (for a total of $2,611,000) for the 2012-2013 school year; and by an additional $1,275,000 (for a total of $3,886,000) for the 2013-2014 school year for non-recurring purposes."

What Is the Tax Impact of the What Is the Tax Impact of the First Question?First Question?

What Is the Tax Impact of an What Is the Tax Impact of an Operational Referendum?Operational Referendum?

In simpler terms, the average annual increase various home values breaks down to:

$225,000 Home$200,000 Home$175,000 Home

$0.59 per day$0.53 per day$0.46 per day

$4.17 per week$3.71 per week$3.25 per week

$217 per year$193 per year$169 per year

What is the Second Question on What is the Second Question on the Ballot?the Ballot?

BE IT RESOLVED by the School Board of the Stoughton Area School District, Dane and Rock Counties, Wisconsin that there shall be issued pursuant to Chapter 67 of the Wisconsin Statutes, general obligation bonds in an amount not to exceed $7,250,000 for the public purpose of paying the cost of maintaining, improving, updating, remodeling and replacements at all school buildings and acquiring equipment."

The Facts:The Facts:The district is asking for the authority to borrow $7,250,000 toaddress the needs on the 10 year maintenance plan.

The debt can be structured so it is paid off as other debt retires. This structure will allow the future debt service mill rate to remain at a rate similar to the 09-10 tax rate.

The district also has a one-time opportunity to apply for very low or zero percent interest rate bonds through the stimulus package. If 35% of the debt could be acquired this way, it would save approximately $900,000 in interest.

What Is the Tax Impact of a Debt What Is the Tax Impact of a Debt Referendum For Maintenance?Referendum For Maintenance?

T a x L e v y Y e a r

Y e a r D e b t D u e

C u rre n t D e b t S e rv ic e

P o te n tia l N e w D e b t S e rv ic e

T o ta l D e b t S e rv ic e

C o m b in e d M ill R a te

2 0 0 9 2 0 1 0 $ 2 ,8 8 8 ,9 2 4 $ 2 ,8 8 8 ,9 2 4 $ 1 .4 12 0 1 0 2 0 1 1 $ 2 ,8 8 9 ,4 9 3 $ 2 ,8 8 9 ,4 9 3 $ 1 .3 82 0 1 1 2 0 1 2 $ 2 ,5 7 0 ,7 9 9 $ 3 8 5 ,1 5 6 $ 2 ,9 5 5 ,9 5 5 $ 1 .3 82 0 1 2 2 0 1 3 $ 2 ,5 6 2 ,8 6 9 $ 4 5 4 ,9 3 8 $ 3 ,0 1 7 ,8 0 7 $ 1 .3 82 0 1 3 2 0 1 4 $ 2 ,5 6 8 ,7 3 3 $ 5 0 7 ,2 8 8 $ 3 ,0 7 6 ,0 2 0 $ 1 .3 82 0 1 4 2 0 1 5 $ 2 ,5 6 8 ,3 3 5 $ 5 6 6 ,8 7 5 $ 3 ,1 3 5 ,2 1 0 $ 1 .3 82 0 1 5 2 0 1 6 $ 2 ,5 7 1 ,2 0 1 $ 6 2 3 ,4 8 8 $ 3 ,1 9 4 ,6 8 9 $ 1 .3 82 0 1 6 2 0 1 7 $ 3 4 7 ,9 7 8 $ 2 ,1 6 9 ,7 1 9 $ 2 ,5 1 7 ,6 9 6 $ 1 .0 72 0 1 7 2 0 1 8 $ 3 5 1 ,9 4 1 $ 2 ,2 1 9 ,1 8 8 $ 2 ,5 7 1 ,1 2 9 $ 1 .0 72 0 1 8 2 0 1 9 $ 3 5 0 ,1 0 8 $ 2 ,2 8 2 ,4 9 4 $ 2 ,6 3 2 ,6 0 1 $ 1 .0 72 0 1 9 2 0 2 0 $ 3 5 7 ,2 7 0 $ 3 5 7 ,2 7 0 $ 0 .1 42 0 2 0 2 0 2 1 $ 3 5 3 ,3 9 4 $ 3 5 3 ,3 9 4 $ 0 .1 42 0 2 1 2 0 2 2 $ 3 5 8 ,6 9 0 $ 3 5 8 ,6 9 0 $ 0 .1 42 0 2 2 2 0 2 3 $ 3 6 3 ,0 7 6 $ 3 6 3 ,0 7 6 $ 0 .1 4

$ 2 1 ,1 0 2 ,8 0 9 $ 9 ,2 0 9 ,1 4 4 $ 3 0 ,3 1 1 ,9 5 3Im p a c t =($ 0 .0 3 )

S to u g h to n A re a S c h o o l D is tr ic tE X A M P L E R E F E R E N D U M F IN A N C IN G P L A N

S c e n a rio fo r O b ta in in g $ 7 ,2 5 0 ,0 0 0 in D e b t

***T h e m ill ra te is b a s e d o n 2 0 0 9 E q u a lize d V a lu a tio n w ith a n a n n u a l g ro w th o f 2 .0 % ***

What Is the Tax Impact of a Debt What Is the Tax Impact of a Debt Referendum For Maintenance?Referendum For Maintenance?

Stoughton Area Public School DistrictReferendum Approved Debt (Fund 39)

Base Referendum Financing PlanNo Stimulus Funding

$1.41 $1.38$1.20 $1.18 $1.16 $1.13 $1.11

$0.15 $0.15 $0.14 $0.14 $0.14 $0.14 $0.14

$0.18 $0.21 $0.23 $0.25 $0.27

$0.92 $0.92 $0.93

$1.41 $1.38 $1.38 $1.38 $1.38 $1.38 $1.38

$1.07 $1.07 $1.07

$0.14 $0.14 $0.14 $0.14

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

2009 ‐2010

2010 ‐2011

2011 ‐2012

2012 ‐2013

2013 ‐2014

2014 ‐2015

2015 ‐2016

2016 ‐2017

2017 ‐2018

2018 ‐2019

2019 ‐2020

2020 ‐2021

2021 ‐2022

2022 ‐2023

Existing April 2010 Referendum Project

What Is the Tax Impact of a Debt What Is the Tax Impact of a Debt Referendum For Maintenance?Referendum For Maintenance?

Stoughton Area Public School DistrictReferendum Approved Debt (Fund 39)

Base Referendum Financing Plan35% Stimulus Funding (Tax Credit Bonds)

$1.41 $1.38$1.20 $1.18 $1.16 $1.13 $1.11

$0.15 $0.15 $0.14 $0.14 $0.14 $0.14 $0.14

$0.14 $0.17 $0.19 $0.21 $0.24

$1.05 $1.03

$0.52

$1.41 $1.38 $1.35 $1.35 $1.35 $1.35 $1.35

$1.19 $1.17

$0.66

$0.14 $0.14 $0.14 $0.14

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

2009 ‐2010

2010 ‐2011

2011 ‐2012

2012 ‐2013

2013 ‐2014

2014 ‐2015

2015 ‐2016

2016 ‐2017

2017 ‐2018

2018 ‐2019

2019 ‐2020

2020 ‐2021

2021 ‐2022

2022 ‐2023

Existing April 2010 Referendum Project

What Happens If The What Happens If The Referendum Fails?Referendum Fails?

• Further increases in class size• Reduction in academic programs• Reduction in athletic programs• Reduction in class offerings and choices• Reduction in support services (e.g. counseling, 

psychology, and transportation)• Increased Fees• Deferred maintenance resulting in potential long term 

facility problems

What Happens If The What Happens If The Referendum Fails?Referendum Fails?

District administration has created a template of the types of reductions that could occur over the next three years if the referendum fails.

This document, shown on the next slide, is available on the district website: www.stoughton.k12.wi.us

Program/Service Amount Program/Service Amount Program/Service AmountEnrollment Driven (current policy) 215,000

Enrollment Driven (current policy) 120,000

Enrollment Driven (current policy) (60,000)

Elementary MAPE (current policy) 25,740

Elementary MAPE (current policy) 22,080

Elementary MAPE (current policy) (12,240)

Unit EAs (1.5 - .5 FTE at each elementary building) 52,500

Unit EAs (1.5 - .5 FTE at each elementary building) 52,500

Unit EAs (1.5 - .5 FTE at each elementary building) 52,500

Reduce Elementary MAPE minutes 10 in music & art, 20 in PE - current policy (1.81 FTE) 108,600

Elementary Library EA (1.5 FTE) 52,500

Elementary Library EA (1.5 FTE) 52,500

Elementary Strings (.66 FTE) 39,600 River Bluff Library EA (.5 FTE) 17,500 Increase elementary class size policy by 2 120,000

Reduce Music Lessons - River Bluff 39,000 River Bluff 7 period day 150,000

Increase elementary class size policy (MAPE impact) 40,020

High School Elective Classes (1.0 - 2.0 FTE) 60,000 River Bluff Athletics 55,555

Elementary Psychologist (2.0 FTE) 120,000

High School Class size increase - up to 28 (1.5 to 2.0 FTE) 90,000

Reduce Music Lessons - River Bluff 39,000 River Bluff Library EA (.5 FTE) 17,500

Increase Athletic Fees 15,500 High School Library EA (.5 FTE) 17,500 RB Counselor (0.5 FTE) 30,000

Athletics - Cheerleading & 9th Grade Softball 9,565

HS Elective Classes Increase (1.0 to 2.0 FTE) 60,000

Increase middle school class size policy by 2 300,000

Efficiency Reductions (1.0 AESC support staff) 40,000

High School Class size increase - up to 28 (1.5 to 2.0 FTE) 90,000

High School Library EA (.5 FTE) 17,500

Allocation Freeze 50,000

Athletics - 9th grade soccer, 9th grade baseball, boys swimming, equipment manager 15,598 HS Counselor (1.5 FTE) 90,000

Double Routing bus 45,000 Reading Specialist (3.0 FTE) 180,000 Eliminate TAG 150,000

District sub budget reduction 10,000 AESC Support positions (up to 1.5 FTE) 82,500 Administrator 100,000

Administrative Salary Freeze 45,500 Custodians (1.0 FTE) 60,000 Custodians (1.0 FTE) 60,000 Outdoor Maintenance (1.0 FTE) 63,000

Staff Development & Professional Services 17,000

Total 846,005 Total 1,077,733 Total 1,094,780

Year 1 (2010-11) Year 2 (2011-12) Year 3 (2012-13)

Potential Three Year Reduction Strategy

Will The Referendum Solve All Will The Referendum Solve All Financial Issues?Financial Issues?

Unfortunately, there are conflicts in the laws that drive schoolfunding. The revenue limit is based on a per student amount. When that amount per student is increasing less than expenses increase, and a district is declining in enrollment, something has to give. The only way to generate funds above the revenue limit is through a referendum.

***Until the state funding formula changes, districts will continue to struggle with making cuts or seeking additional taxpayer support***

Strong Schools & Strong CommunityStrong Schools & Strong Community

Supporting Our Youth So They Supporting Our Youth So They Can Achieve Their DreamsCan Achieve Their Dreams