A thorough analysis of the financial cost and statewide perspective

The School District of Iola-Scandinavia will ask voters to approve a multi-million dollar operational referendum on the April 7 ballot, seeking to exceed the state-imposed revenue limit and provide additional funding for district operations over the next four years.

The board-approved proposal, a four-year non-recurring operational referendum, will allow the district to exceed its revenue limit by $1.6 million in the 2026-27 school year, followed by $2 million annually through the 2029-30 school year. If approved by a simple majority of voters, the measure aims to sustain current academic programming, student opportunities, extracurricular activities, staffing levels, and day-to-day operations without significant cuts.

District Administrator Chris Nelson has emphasized that the referendum will help maintain the high-quality educational environment the community values. The district has relied on similar operational referendum funding for nearly a decade, as state revenue limits have not kept pace with rising costs. Without renewal, the district faces potential reductions in programs and services, staff positions, increases in class sizes, limits on extracurriculars, and delays in maintenance projects.

The Iola-Scandinavia schools recently received recognition for exceeding expectations in the state report card, underscoring the district’s strong performance that supporters argue the additional funding will help preserve.

Projected tax impacts, based on estimated mill rates, show varying effects depending on property values. The figures outline estimated total tax levies and year-over-year increases (or decreases in later years) as follows:

For a property valued at $100,000:

• 2026-27 levy: $761.50 (increase of $63)
• 2027-28: $865.50 (increase of $104)
• 2028-29: $867.00 (increase of $2)
• 2029-30: $862.00 (decrease of $5)
• Total projected increase over the period: $164

For a $200,000 property:

• 2026-27: $1,523 (increase of $126)
• 2027-28: $1,731 (increase of $208)
• 2028-29: $1,734 (increase of $4)
• 2029-30: $1,724 (decrease of $10)
• Total: $328

For a $250,000 property (often cited as a benchmark):

• Total projected increase over the four years: approximately $410, aligning with district estimates of an average annual impact of around $102 above current rates for such a home.

Higher-valued properties will see proportionally larger amounts, such as $738 total for a $450,000 property. The mill rates are projected to start at $7.61 in 2026-27, rise to $8.65 in 2027-28, peak slightly at $8.67 in 2028-29, and ease to $8.62 in 2029-30.

Other school districts

The School District of Iola-Scandinavia’s proposed four-year non-recurring operational referendum, seeking to exceed state revenue limits by $1.6 million in 2026-27 and $2 million annually thereafter through 2029-30, aligns with a widespread trend across Wisconsin. Districts statewide increasingly turn to voter-approved referendums to bridge funding gaps caused by revenue limits that have not kept pace with inflation, rising costs, and student needs.

Operational referendums like Iola-Scandinavia’s — which aim to sustain staffing, programs, extracurriculars, and daily operations without deep cuts — are common. In recent years, dozens of districts have pursued similar measures, often on the spring ballot (such as April elections). For context:

• Many smaller and mid-sized districts request amounts in the low millions annually, phased over 3–5 years on a non-recurring basis, much like Iola-Scandinavia’s structure.
• Examples include the School District of Arcadia, which sought to exceed limits by $1.5 million in 2025-26, decreasing stepwise to $500,000 by 2028-29, to cover staff salaries, benefits, maintenance, and equipment.
• The Menasha Joint School District recently approved a question for $6 million per year over six years to address budget shortfalls, with an estimated modest tax impact of about $12.50 annually for a $250,000 property.
• Larger districts have pursued bigger asks: Fond du Lac sought $7.5 million annually over four years in 2026 (after a prior $10 million attempt failed), while others like Appleton targeted $15 million per year over four years.

Tax impacts vary by district size, property values, and mill rate projections, but districts typically present them as gradual or phased increases, often with later-year stabilizations or slight decreases — similar to Iola-Scandinavia’s estimates showing modest year-over-year changes and a total four-year impact of around $410 for a $250,000 home.

Voter outcomes are mixed.

In the April 2025 spring election, Wisconsin saw 89 school referendums (many operational), with about 55–60% passing overall. Smaller or retry attempts (after prior failures) often fared better, while some larger ones failed, leading districts to revisit scaled-back versions. Passage rates for operational referendums have hovered around 50–70% in recent cycles, with many districts succeeding on second or third tries by emphasizing community benefits and fiscal responsibility.

As the April 7 election approaches, Iola-Scandinavia joins numerous other districts placing similar questions on the ballot, reflecting ongoing statewide challenges in school funding. Community outreach, transparent tax projections, and highlighting educational impacts will likely play key roles in voter decisions, as seen in comparable efforts across the state.

School funding reform

Wisconsin’s school funding system faces ongoing scrutiny and calls for comprehensive reform as districts grapple with stagnant state aid, rising costs, and reliance on local referendums to maintain operations.

The core issue stems from revenue limits established in the 1990s, which cap the amount districts can raise through state aid and property taxes unless voters approve exceptions via referendums. These limits have not consistently adjusted for inflation or enrollment changes, leading to chronic underfunding relative to expenses like staffing, benefits, utilities, and special education services.

In the recently enacted 2025-27 biennial budget (2025 WI Act 15, signed by Gov. Tony Evers in July 2025), K-12 public schools received no new general aid dollars or per-pupil increases beyond existing formulas. Instead, the budget focused increases on special education reimbursements, raising the rate from around 26-32% to 42% in 2025-26 and 45% in 2026-27 for standard costs, with higher rates (up to 90%) for very high-cost cases exceeding $30,000 per student. This marked a significant but partial step toward addressing special education funding gaps, though advocates argue it falls short of the 60-90% reimbursement rates sought by public school leaders and the DPI.

A key structural feature locked in by Evers’ 2023 partial veto (upheld by the Wisconsin Supreme Court in 2025) allows an annual $325 per-pupil revenue limit adjustment through the year 2425 — effectively a “400-year” increase. This provides districts with roughly $760 million in additional revenue authority over the current biennium but does not guarantee state funding to cover it, often shifting the burden to local property taxes or referendums.

As a result, operational referendums remain a primary workaround. Districts increasingly seek voter approval to exceed revenue limits for non-recurring periods (typically 3-6 years) to sustain programs, staffing, and maintenance without deep cuts. Trends show:

• Dozens of districts place such questions on spring ballots, including the April 7, election (e.g., Menasha Joint seeking $6 million annually through 2031-32; Wisconsin Rapids for $3.8 million annually over five years starting 2026-27).
• Passage rates vary (around 50-78% in recent cycles), with many succeeding on operational asks emphasizing fiscal responsibility and community benefits.
• Reliance on referendums has grown: Over 80% of districts have attempted them historically, and referendum-approved funding now supports a notable portion of operations in many areas.

Reform proposals and debates continue:

• DPI Superintendent Jill Underly’s prior budget requests (e.g., for 2025-27) sought over $3-4 billion in new investments, including revenue limit increases tied to inflation, 90% special education reimbursement, and property tax limits.
• Bipartisan efforts include Sen. André Jacque’s bill (passed committee in late 2025) to reform aid payment schedules (equalizing installments at 25% each) to reduce districts’ short-term borrowing needs.
• Other ideas, like “decoupling” public school funding from voucher/charter payments, aim to stabilize public district revenues and ease property tax pressures.
• Democrats prioritize boosting K-12 aid in 2026 legislative sessions, while critics note enrollment declines and per-pupil funding dynamics exacerbate challenges.

Federal uncertainties, including potential cuts to programs like 21st Century Community Learning Centers under proposed FY2026 budgets, add further pressure. Without broader systemic changes — such as indexing revenue limits to inflation, fully funding special education mandates, or overhauling the aid formula — many expect continued referendum dependence and local tax impacts as districts work to preserve educational quality. Community discussions, transparent budgeting, and voter engagement will remain central ahead of the 2026 election cycle.

According to the Badger Institute, “Wisconsin’s rising property tax bills are primarily a school levy issue. County property taxes rose about 2.9 percent last year via new construction and voter overrides. School district levies rose 7.8 percent, and the growing per-pupil revenue limit is a major factor in that increase.”

AI was used in researching this article’s information.

A Q&A with Chris Nelson

With enrollment numbers down for the district, what are you and the board doing to cut expenses concerning both staff, subject offerings above state DPI standards, and facilities and grounds operation?

The district has been proactive in managing expenses in response to enrollment changes. Since our first operational referendum was approved in 2016, we have reduced regular education staff through attrition — not filling positions when staff retire or resign — and we continue to use this approach.

We have also consolidated administrative roles following the elimination of our district-owned bus fleet and the retirement of our transportation director. To further reduce costs, we have partnered with CESA 5 for shared services and collaborate with RVA for certain student services.

Additionally, all staff have accepted increases in health insurance deductibles in recent years to help control healthcare costs for the district. We remain committed to operating as efficiently as possible while maintaining quality educational programming for our students.

What big expenses are on the horizon that taxpayers should know about?

We are taking a strategic, long-term approach to facility planning and maintenance to ensure we can address future needs within our budget constraints without requiring additional capital referendums.  We do not anticipate any large capital expenses that would require additional capital referendums in the near future. Our recently approved capital referendum has already addressed major facility needs, including the replacement of boilers, roofs, windows, and doors. These improvements have made our buildings significantly more energy efficient, which will generate cost savings for the district over time.

What specifically are the referendum dollars going toward in each of the years?

The referendum funds will support the district’s ongoing educational programs and daily operations throughout all four years. These are recurring expenses essential to operating our schools, including: Instructional materials and curriculum resources, building maintenance and custodial services, food service operations, utilities, student transportation, student services (counseling, special education, etc.),  student extra-curricular activities, and staff salaries and benefits.

The referendum ensures we can continue providing the quality education and student support services our community expects without making significant cuts to programs or staff.

Will you be scheduling public meetings on this for Q&A, and if so, have you scheduled any as of yet?

Yes, we are planning multiple opportunities for community members to learn about the referendum and ask questions. We will be hosting public informational forums at the school auditorium and at various locations throughout the community during February and March. Specific dates and times will be announced soon.

I am also scheduled to speak with the Iola Lions Club at their March meeting, and we welcome invitations from other community organizations. Additionally, we are developing a dedicated referendum website that will include detailed information, frequently asked questions, and regular updates as we approach the April 7 election.