Nekoosa is a rural school district located about 100 miles north of Madison, Wisconsin. A high school, a middle school, an elementary school, and an administrative building serve the student population of approximately 1,100. The free and reduced-price meal rate is about 55%; the special-education population averages around 14%.
Wisconsin school districts receive their funding from two primary sources: taxpayers and state aid. A state-imposed revenue cap limits how much revenue districts can receive from both sources. Nekoosa gets 32% of its funding from the state and 68% from the taxpayers. To receive funding beyond the revenue cap, the school board adopts a resolution to be voted on by taxpayers in a specified election.
There are two types of referenda. An operating referendum allows voters to invest in their district by approving a tax increase above the allowable revenue cap—basically giving districts additional revenue to operate. If approved by the taxpayers, a capital referendum allows the board to issue debt; capital referenda are typically used for capital projects, such as school construction.
We had considered ourselves lucky, since many school districts across the state had already gone to their taxpayers to secure additional funds. Now, it was our turn.
Based on the forecasting models and budget planning, it was inevitable that Nekoosa would need to ask the taxpayers for an operating referendum. We had considered ourselves lucky, since many school districts across the state had already gone to their taxpayers to secure additional funds. Now, it was our turn.
A Challenge at Hand
We knew we had an uphill battle with our community, considering a past issue that shone an unfavorable light on the district.
I began my position in Nekoosa in July 2008. On my seventh day on the job, the auditors explained that the district had overspent its budget by $1.3 million. Our fund balance dipped to a new low of $400,000.
The district administration advised the staff and school board of the shortfall and froze all spending. Word quickly spread throughout the community and eventually to the media. With public trust in the school district at an all-time low, the school board and administration spent months addressing the fallout.
I responded to the situation by putting processes and procedures in place to prevent this from happening in the future. For example, the first step was to educate the staff on purchasing protocols. Many purchases in the past were made through staff reimbursements. I implemented a strict requisition process through our financial software that required a three-tiered approval process. It also required that budgeted funds be available before any purchases were approved. I frequently met with the staff to share the changes and update them on the budget progress.
At every opportunity, I talked with community members and assured them of the financial future of the district by explaining how the overspending occurred and the processes put in place to prevent overspending in the future. It also allowed me to explain school funding in a way that made sense to them. I knew that rebuilding trust with the staff and community could take years, and transparency was critical.
Laying the Groundwork
In December 2018, when it was clear Nekoosa would need an operating referendum, we started planning with an eye toward an April 7, 2020, vote. The district hired a communications firm to establish a process of creating community awareness and engagement. Because some community members continued to bring up the July 2008 financial embarrassment, we recognized that we needed to highlight Nekoosa’s fiscal responsibility.
School finance is a complex field. I need to understand all facts of school finance, but the community does not.
As we were planning for the operating referendum, the local athletic association and the high school athletic department approached the school board about the condition of the district’s athletic facilities. The track at the high school was unusable, and the football field (which was built on a swamp) was jagged and very uneven.
After many conversations, the school board decided that in addition to asking the community to approve an operating referendum, they would also ask the community to support a capital referendum to upgrade the district’s athletic facilities. Since local athletics are important to the Nekoosa community, the school board reasoned that the capital referendum would help sell the operating referendum.
Promoting both referenda required us to juggle many tasks. We scheduled community meetings with local municipalities, recruited community members to help sell the referenda to the greater community, hired a survey company to gauge the community’s feelings, and developed scenarios to explain the tax impact.
School finance is a complex field. I need to understand all facets of school finance, but the community does not. It is my job to weed out the details and explain school finance so they can understand.
Because most of the district’s funds come from the taxpayers (68%), the community members were concerned about their increased tax bill. As the school board and administration prepared for referendum meetings with the staff, parent groups, town boards, and community members, they developed talking points that we could use in all of our presentations. We believed it was essential to present the same message at every meeting.
We began meeting with the community in May 2019 and didn’t stop until March 2020. We surveyed the community members in October 2019 and reviewed the results a month later. They indicated that we had a good chance of passing both referenda.
At the end of the day on April 7, 2020, we were pleased that the operating referendum passed with an approval rate of 64% and the capital referendum passed with a 54% approval rate. It was a good day.
Lessons Learned
Here are some of the lessons I learned during this process.
- Be honest. The tax impact of the referenda was a challenging topic to raise. The idea of increasing community members’ taxes to support the district was difficult for some citizens to hear. It’s best to have that conversation early and give everyone time to ask questions.
- Communicate a consistent message. The message is relayed to large groups of people over several months. Creating talking points is a great way to remain on task. Although there are many moving parts, a consistent message is a unified message.
- Be transparent before and after election day. Transparency builds trust. During the community meetings, we shared fiscal information and encouraged questions. After the community approved the referenda, we regularly shared how their taxpayer dollars were being spent according to the requirements.
Nekoosa has come a long way since 2008. We have a community that supports our schools and truly cares about the well-being of our students. I couldn’t be happier that the community proved me wrong not only once, but twice.