On Monday, August 12th, the Board of Education passed a resolution to exceed the revenue cap in the amount of $5 million on a recurring basis for the purpose of paying Hudson School District operation, maintenance, and staffing costs.
Listen to our recent podcast with Dr. Ouellette
Why is an Operational Referendum necessary?
State policy limits how much school districts can spend. Most school district funding comes from a combination of state aid and local property taxes. From 1994 to 2009, school district revenue limits were adjusted for inflation. During this time, most school districts could keep up with ongoing needs. Since the 2010 state-imposed revenue cap was put in place, 80% of school districts in Wisconsin have turned to their community voters asking for a levy override in the form of an operational referendum.
More and more school districts have fallen behind without state aid increases to account for inflation. We have critically reviewed budget projections extending through 2028-2029. Based on assumptions that consider wage increases, health benefits, revenue limits, student enrollment, and special education aid, the School District will experience a budget deficit estimated at $7.5 million by 2028-2029.
In addition to state aid not keeping pace with inflation, student enrollment has declined over the past several years. Across the country, declining birth rates have contributed to the lower number of school-age children. At the same time, the Hudson community has seen a decrease in the number of families with school-age children moving into the area (in-migration). The School District has maintained a “capture rate” of over eighty percent. Capture rate refers to the number of school-age children who reside in the School District and attend Hudson Schools. This capture rate has remained stable for over twenty years.
Click here to learn more about the November 5th operational referendum
