MONROE — In about two weeks, survey results will be in on whether residents in Monroe would support a $1.5 million operating referendum that officials hope to include on the ballot in November during the gubernatorial election.

School Perceptions, an independent research firm based in Slinger, is conducting the survey for the Monroe school district. District administrators and school board members are weighing whether to seek an operating referendum in the fall election to maintain programs. Monroe Business Administrator Ron Olson updated the board on a five-year budget forecast in a meeting June 4.

There had been more than 800 responses to the community survey as of the meeting. Monroe District Administrator Rick Waski is a strong advocate that the survey will be one tool for gauging the community’s support based on its results.

“I don’t think you look at the survey and say it’s a mandate from the community,” Waski said. “The board will ultimately decide what the referendum question is and how much the district asks for.”

There are many aspects to consider before officials determine whether to pursue a referendum in the fall election, including the state aid amount per pupil, the dwindling amount the district can levy from taxpayers and enrollment trends.

Olson developed two budget forecasts with a $100-per-pupil funding increase for the next five years. The first estimate includes a 1 percent increase in teacher salaries, 0.5 percent bump in benefits and 3 percent increase in health insurance. The second allows a 2.5 percent increase in teacher salaries, 2 percent bump in benefits and 5 percent increase in insurance. Olson also completed a budget forecast in the event of a $200-per-pupil state aid increase for the next five years with a 1 percent increase in salaries, 0.5 percent increase in benefits and 3 percent increase in insurance.

Olson said in all cases the expected deficit in 2019-20 and beyond will be more than $1.5 million and might be closer to $1.9 million since he likes to bring the budget in $400,000 to $700,000 less than projected.

However, the district’s Facilities Committee is recommending the board seek a two-year $1.5 million operating referendum and a two-year $3.3 million maintenance referendum for HVAC and lighting repairs at Parkside Elementary School and repairs at Monroe Middle School.

Waski said if the board agrees to put both referendum questions on the ballot in November, they would not have any tax impact increase compared to what the district levied for this year because the current referendum will be retired by then. 

In 2016, voters approved two three-year referendums for the school district: a $1.5 million increase per year for operating costs and a $460,000 increase per year for maintenance and safety projects. That funding will end June 30, 2019.

Waski said he would not recommend asking for any more than $1.5 million in an operating referendum because anything higher will result in an increase in the school property taxes for taxpayers. If the board decides to put a referendum question on the ballot, he favors the fall election.

“I think there will be a high voter turnout in the fall with the gubernatorial election,” Waski said. “I think we would get better input from the community in the fall election.”

If the state continues to provide a $200-per-pupil aid increase for the next five years and if costs remained similar to projections, the district would have a slight budget deficit each year for the next five years, Olson said.

If the state aid increase is $100 per pupil over the next five years, he said some reductions would be required. If the aid increase is $100 per pupil and inflation and the Consumer Price Index increase more than they have in recent years, the district would need to make budget reductions in addition to seeking a referendum, Olson said.

The amount the district can levy from taxpayers, a state-imposed limit based on enrollment, has seen a steady decline over the last several years, most recently going from $24.5 million in the 2016-17 school year to $24.1 million this year. Next year, Olson projects the district can levy just under $24 million without a referendum, which is about $500,000 less than two years ago. In 2023-24, Olson estimates the district will be able to levy a base amount of $23.4 million, or about $1 million less than 2016-17. Voters could add to the base levy by approving a referendum.

“Our loss in the revenue limit base and declining enrollment are growing faster than any increase we get from the per pupil state aid,” Olson said.

Compounding the school funding formula issue is Monroe’s declining enrollment. The district has 2,358 students this year. Based on Olson’s enrollment projections, there will be four fewer students next year (2,354) and another seven fewer in 2019-20 (2,347). In 2023, he projects the district will have dropped by 53 students, with an enrollment of 2,305, compared to this year. Fewer students equates to less state funding.

Waski said the days of using equalized valuation as part of the school funding puzzle for the amount districts will receive in state aid are gone.

There are two methods for valuing property across the state — assessed value and equalized valuation. Assessed value is the property’s value determined by an assessor. The equalized valuation is the result when the state Department of Revenue adjusts the assessed value to incorporate actual property sales in the area. Equalized value is used to assure each type of property has comparable value despite different assessment laws in various counties or cities.