How much money is the School District asking for?
The April 1, 2025 Operational Referendum, if passed, would raise the revenue cap in an amount not to exceed $5 million for a period of six years on a non-recurring basis (starting with the 2025-2026 school year and ending with the 2030-2031 school year). A non-recurring operational referendum means only up to $5 million can be added to each annual budget. This does not mean the $5 million is compounded. For example, fiscal year 2025-2026 is up to $5 million, fiscal year 2026-2027 is up to $5 million (not a compounded $10 million)
How will the funds be used?
The Operational Referendum will enable the School District to:
- Maintain rigorous college and career-ready curriculum.
- Maintain technical education and trades certification course offerings.
- Maintain elementary special classes like music, art, and physical education.
- Maintain math and reading interventions for students who need additional support for their success.
- Maintain small class sizes.
- Maintain a wide range of extra-curricular activities and athletic activities.
- Recruit and retain high-quality staff.
- Maintain up-to-date technology, providing for educational needs and cybersecurity protection.
- Maintain transportation for students in grades K-8 who live 1 mile or more from their school, and 2 miles or more for students in grades 9-12.
- Keep our schools clean, safe and in good repair.
The Investment: What is the impact for you, the taxpayer?
There would be an average annual property tax increase of:
- $4.00 for a $100,000 home
- $12.00 for a $300,000 home
- $20.00 for a $500,00 home
Estimates are based on Equalized Property Value. Additionally, the projection is based on the 2024-2025 Fiscal Year Wisconsin funding formula. Each municipality may experience a slightly higher or lower increase depending on whether municipalities re-assess properties.
Will the passage of an Operational Referendum prevent the consolidation of schools?
Reducing the number of elementary schools will remain a discussion of the Board of Education as they continue to monitor the School District’s financial situation, student enrollment, high-quality instruction and learning opportunities, and staff retention. The $5 million Operational Referendum over levy will not change the need for the Board to make the tough decision to close one or two schools or keep them open.
What has the School District done to reduce its budget, knowing enrollments were declining and state aid had not kept up with inflation?
As student enrollments have declined, initially experienced mostly at the elementary level, class sections have been reduced. In recent years, staff attrition due to retirements have prevented the need for staff layoffs. Additionally, administrative positions have been reduced as individuals have left the School District.
Over the past two years the following reductions have been made.
Reductions made in the 2023-2024 School Year
- Elementary School Staff (4.0 FTE) -$346,084
- Middle School Staff (.09 FTE) -$5,700
- High School Staff (2.5 FTE) -$165,832
- Facilities & Grounds (2.0 FTE) -$130,000
- IT Technician -$99,877
- Reduction in Assistant Principal work days -$60,000
- Total 23-24 School Year Reductions = -$807,493
Reductions made in the 2024-2025 School Year
- Shift Expenses to Fund 80 – Community Education (SRO, HMS Co-curricular activities and HMS Athletic Director) -$409,852
- Elementary School Staff (2.0 FTE) -$119,730
- Middle School Staff (1.25 FTE) -$89,650
- High School Staff (2.5 FTE) -$230,966
- Admin – Assistant Director of Student Services -$148,303
- Total 24-25 School Year Reductions = -$998,501
Over the past four years, the School District has cut nearly $3.4 million from the budget.
The Board of Education has also taken action to reduce School District owned properties based on community feedback.
- UU property was listed for sale with an accepted offer.
- The District Offices (644 Brakke Dr.) have been listed for sale.
- The District Offices will be moved into available space at Hudson Middle School.
Why is the School District asking for an Operational Referendum now?
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 1914 to 2009, school district revenue limits were adjusted for inflation. During this time, most school districts could keep up with ongoing needs. Since the state-imposed revenue cap was put in place, over 80% of school districts in Wisconsin have turned to their community voters asking for a levy override in the form of an Operational Referendum.
Without state aid increases to account for inflation, more and more school districts are falling behind. The Hudson Board of Education has critically reviewed budget projections extending through 2028-2029. Based on assumptions considering wage increases, health benefits, revenue limits, student enrollment, and special education aid, the School District will experience a budget deficit ranging from just under $7 million to over $9 million by 2028-2029.
In addition to state aid not keeping pace with inflation, student enrollment has declined over the past several years. Data has shown that students are not leaving Hudson Schools to go to other schools; instead, we are experiencing lower birth rates and a decline in families with school-age children (in-migration) moving into the District. Declining birth rates and resulting lower enrollments are trends experienced by many school districts across the state and the nation.
At the Board of Education, January 13, 2025 meeting, members took action to have an Operational Referendum put on the April 1, 2025 ballot. The Board is asking the community to support a $5 million NON-Recurring levy override for six years starting with the 2025-2026 school year.
The Board of Education deliberated on whether to go to referendum, should they ask for a recurring or non-recurring referendum, and if they they chose a non-recurring referendum, how long should the levy override extend.
Feedback from the recent Community Conversation on Budget Challenges, showed that 83.9% of the respondents thought the Board should pursue an Operation Referendum in April.
In November, the community voted down an Operational Referendum for a $5 million recurring levy override. A recurring referendum has no cut-off point. Some community members were uncomfortable with extending the $5 million forever versus a non-recurring referendum with a specific end date.
