Voters in the Salem School District will be able to vote on an operational referendum in the spring election on April 1.
We sent a questionnaire to district officials. Following are the responses from:
- Vicki King, superintendent
- Ryan Sandberg, director of business services
- Nicole Hass, School Board treasurer
What is being sought with your district’s referendum?
Nicole Hass, School Board Treasurer: We are seeking to borrow $2 million per year for the next three years. This equates to roughly $2,000 per student annually — with no additional tax impact from Salem School District to our taxpayers.
Why is the referendum needed?
Nicole Hass, School Board Treasurer: Salem School District is a low-revenue district, receiving less state funding per student than 96% of districts in Wisconsin. Over the past decade, state funding has risen by only 18%, while inflationary costs have increased 28%, creating a 43% funding gap. For the last three years, our community’s support through an operational referendum (passed in 2022), has allowed us to fund that gap in order to maintain class sizes and programs without increasing your taxes. As these funds expire, we face the challenge of shifting funds from our academic needs into rising operational expenses.
Dr. King, Superintendent: When the State established its current school funding formula back in 1993, Salem’s Board of Education had already demonstrated a strong commitment to fiscal responsibility. Unlike some districts that rapidly raised their levies before the cap set in ‘93 was put in place, Salem made a deliberate choice to live within its means. Unfortunately, that decision—while responsible—placed Salem at a disadvantage when the state froze revenue limits based on each district’s spending at that time. As a result, districts that were spending more in 1993 were locked into significantly higher revenue limits, while more fiscally conservative districts like Salem were capped at a much lower rate. To this day, we are seeing the effects: some districts are receiving over $18,000 per student, while Salem receives only $11,405. Salem is one of 16 districts in the entire state receiving the lowest funding per student. This means that, despite our ongoing stewardship of taxpayer dollars, we are now forced to return to voters for operational referenda time and again. Making matters worse, the state stopped adjusting per-pupil funding for inflation in 2009. Had those adjustments continued, Salem would receive more than $3,200 extra per student today—funds that would make a real difference for both our learners and our taxpayers. It should be noted that state legislators are actively engaged in discussions about how to fund schools across Wisconsin. Our school board and I have also met with our local representatives in Madison and when they have visited us in our district. They have listened to and acknowledged our concerns and shared the work they are taking to further support our schools and their communities.
What is the projected property tax impact?
Nicole Hass, School Board Treasurer: We can confidently project no increase to your taxes due to our efficient financial management practices and strong credit rating. These practices allow us to secure these funds at low interest rates, ensuring no increase to your mill rate. In fact, in the last several years, our District has decreased the tax rate you pay to our school from $7.73 to $5.81, even through previously approved referendums. While we cannot control rising property values, we remain committed to keeping our mill rate low while continuing our efforts to advocate for fairer funding for our low-revenue districts at the state level.
Dr. King, Superintendent: The proposed referendum is not only projected to maintain a stable tax rate, we can also estimate Salem School District’s portion will have a slight decrease over the next few years. This ensures continued quality education while remaining fiscally responsible to the community.
- 24-25: 5.81 Current Mill Rate
- 25-26: 5.78 Projected Mill Rate
We recognize that there’s a great deal of uncertainty surrounding the state’s biennial budget and how it will affect school funding—particularly when it comes to revenue limits, general aid, categorical aid, and other educational supports. If the state provides additional funding that can be applied to our operational needs, the Board and I are committed to under-levying, meaning we would not collect the full $2 million increase each year. Our goal is not to expand programs, but simply to preserve the high-quality services and opportunities we currently provide.
What will passing the referendum allow the district to do?
Nicole Hass, School Board Treasurer: Should this referendum pass, we will continue efforts in attracting new students in order to increase revenues while also cutting costs when their associated needs are no longer required. With your support through this referendum, we can continue providing the necessary quality education our students deserve.
Dr. King, Superintendent: Our request to taxpayers is solely to help support our current operational needs—we’re not looking to expand, just to sustain what we have. Thanks to Salem’s long-standing efforts to prepay debt and reduce interest costs, along with newly implemented cost-saving and revenue-generating strategies, we are projecting a stable tax rate with a slight decline over the next few years. We’ve already taken steps to increase efficiency, including reducing certain administrative positions and freezing salaries in certain departments. The Board and I are also exploring shared leadership and service agreements with neighboring districts to help reduce overhead—a strategy I’ve also brought forward in conversations with our state legislators.
What will be the effect of the referendum not passing?
Dr. King, Superintendent: If the referendum doesn’t pass, losing $1.9 million in revenue would force the Board to dip into our fund balance, dropping it below its target level which is ratified in our school board policy. It’s important to note that Salem’s fund balance policy is already more conservative than most of our neighboring districts who are maintaining higher reserve thresholds. However, if we fail this referendum, we will need to make further reductions beyond significantly reducing our fund balance. When considering reductions, the Board and I are focused on protecting the students’ experiences as much as possible. To offset the shortfall, we would face difficult decisions, such as reducing bus routes, eliminating or increasing the cost of extracurricular activities and athletic programs, and potentially borrowing short-term—a move that could weaken our credit rating and raise future borrowing costs. Larger class sizes and cuts to essential programs would also be on the table. And, in the end, we would still need to return to voters for another referendum, likely at a higher rate than $5.78, just to keep the district financially stable.
How can people get more information or ask questions?
Dr. King, Superintendent: We would encourage people to visit our website or call Ryan Sandberg the Director of Business Services or me anytime. People can also visit us at the district anytime if they have any questions, comments, or concerns related to the referendum. Here is a short 2 minute video about the referendum: Salem School
