On November 6, voters will consider a referendum question to allow the Juda School District to exceed the revenue cap by $350,000 on an on-going, or “recurring,” basis, beginning with this budget year. This is the same kind of operational referendum the district held, and voters approved, in April 2016. 

A “revenue cap” or “revenue limit” is a state law imposed on all Wisconsin school districts 25 years ago. It is a yearly calculation that includes the school district’s resident enrollment count to determine the amount of revenue the district can tax to pay operating expenses.

The 2016 referendum allowed the district to exceed the revenue cap, beginning with the 2016-17 budget year, by adding $150,000 to the base of the revenue limit calculation. However, since 2016-17, the decline in the district’s resident enrollment caused the base of the revenue limit to decline each year. As of this 2018-19 school year, the district’s revenue cap is $205,000 lower than before the 2016 referendum. 

The 2018 referendum is asking voters to restore the $205,000 of revenue to the level originally requested in the 2016 referendum; and, to provide an additional $145,000 of revenue for increased operating expenses such as utility costs, a full-time custodian, curriculum, instruction, professional development, technology replacement, salary/benefit increases and replenishing fund balance.

If the 2018 referendum is not approved, the district’s fund balance will be used to pay this school year’s expenses. As of June 30, 2018, the fund balance was approximately $385,000. However, this will not be an option for next school year. Significant budget cuts and/or a spring 2019 referendum will be considered.

The tax impact for the 2018 referendum has been updated using final enrollment, state aid and valuation numbers that became available during the last few weeks. The impact is compared to the district’s mill rate for last year’s tax bills ($12.46/$1,000 of equalized value). The district’s mill rate for this year’s tax bill: 1. If the 2018 referendum is approved, it will be $13.63/$1,000, an increase of $1.17/$1,000 ($117 on $100,000 property value); or 2. If the 2018 referendum is not approved, it will be $10.62/$1,000, a decrease of $1.84/$1,000.

The Juda School District is one of 39 Wisconsin school districts holding an operational referendum on Nov. 6, including several surrounding districts. Operational referenda request voter permission to either continue, increase or restore revenue that the yearly revenue cap calculation prevents a school district from taxing for. Only school districts are subject to revenue limits, while municipalities are subject to levy limits. Consolidation or dissolution of school districts do not eliminate school taxes, but instead changes what district the taxes will be paid to. 

Additional information on the Juda School District’s 2018 referendum is available by contacting District Administrator Traci Davis at 608-934-5251 or email davis@judaschool.com. 

— Traci Davis is the superintendent and K-12 principal at Juda school District. She can be reached at davis@judaschool.com.