Impact of State General Aid on Operations Referendum

Recently, the Wisconsin Department of Public Instruction (DPI) certified the amounts of general school aid that each school district across the state is set to receive for the 2024–25 school year. The Madison Metropolitan School District (MMSD) will get $61.3 million, representing an increase of nearly 62% over the prior year, and nearly $10 million more than DPI-provided estimates published over the summer. Increased general school aid, however, does not lessen or eliminate the need for an operations referendum.

“The higher amount of state general aid serves to lower property taxes, but for us as a district, it does not translate to increased funds that we can direct to staff wages, curriculum and programming,” said Bob Soldner, MMSD’s assistant superintendent of financial services. “There may be some who think that this aid will greatly offset our expenses and lessen our need for an operations referendum, and that’s not the case.”

To help clear up misconceptions, the following questions and answers are offered to provide additional insight into what the general school aid means for the District this year and in the future.

What will the increase in state aid impact?
Property taxes will be reduced this school year. Originally, MMSD had estimated that passage of the operations referendum would have a property tax impact of $26 per month. The property tax bill on the average Madison home is now estimated at $3.38 per month this year. 

Beginning in 2027–2028 and each year thereafter, the projected monthly tax impact will be $87 per year. However, that number is only an estimate and will change based on actual state aid received. 

Does the higher amount of state aid increase district funding?
No. MMSD hit its revenue limit for this school year, so the state general aid may only be used to lower property taxes. It cannot be used for other purposes. 

Is the operations referendum still needed?
Yes. State general aid will not offset the need for the operations referendum because these funds may only be used to lower property taxes. The operations referendum would allow MMSD to sustainably account for items such as staff raises, rising healthcare costs and other inflationary pressures and non-static expenditures going forward. 

Does enrollment impact state aid?
Yes. MMSD’s enrollment increased by 125 full-time equivalent students over the prior year, following an annual increase of 18 FTE students in 2023. Per the way schools are funded in Wisconsin, more students generally translates to more state aid.

“We’re encouraged by our enrollment figures bucking projected trends for the second year in a row, and for the increase in state support, but at the end of the day, the underlying reasons for our referendum are unchanged,” Soldner said. “Though one-time and temporary relief is always welcome, we are looking for a sustainable path forward, and the only way for us to find it is by asking for community support.”

Election Day is Tuesday, Nov. 5. To register to vote, please visit: https://myvote.wi.gov/en-us/Register-To-Vote

To learn more about MMSD’s operations and facilities referenda, please visit: https://www.madison.k12.wi.us/about/2024-referenda