In 2014, the district’s taxpayers approved a 5-year operational referendum for $300,000 annually. A similar referendum was passed in 2019, maintaining the same amount for another 5 years. With the current operational referendum set to expire at the end of this school year, the district is seeking approval from the taxpayers once more in order to continue the level of operations the district has at this time.
To address rising costs over the past decade, the district is proposing a non-recurring operational referendum of $500,000 annually for the next 5 years. With this increase, the projected mill rate is expected to drop to 6.69 mills which is lower than the current mill rate of 7.03 mills. This is due to the total levy of the district staying relatively the same because of decreased revenue limits, increases in equalized values, and a few other factors.
The district would like to extend a sincere thank you to the taxpayers for the support over the years. It has been instrumental in enabling the district to provide the level of education and facilities that can be seen today.
For more information, please feel free to contact Mr. Cory Hinkel, Superintendent, at coryh@lucksd.k12.wi.us or 715-472-2152 ext. 106.
Frequently Asked Questions
Didn't the district just pass a referendum?
The district passed a referendum to issue debt in April of 2021. This is different from the operational referendum that was passed in April 2019. The issue of debt was for improvements to the current facilities. These improvements were much needed, and included remodeling areas of the building that were over 50 years old.
Why is the district asking for an operational referendum?
This is not a new ask by the district. The district has exceeded the revenue limit since April 2014 when the taxpayers approved the first operational referendum. This is a continued ask by the district to maintain our current levels of funding.
Why is the district asking for more money than previous operational referendums?
Although the levy, the requested amount by the district, remains relatively consistent at $3,773,990 for the current school year and is projected at $3,774,013 for the 2024-2025 school year, various factors contribute to the need for an increase. The amount set by the state through the revenue limit worksheet is projected to decrease by 2.54%, or just under $96,000. Additionally, the energy efficiency referendum, established in 2016, was designed to see payments rise from $46,557 to $133,357, reflecting an $86,800 increase from the current fiscal year.
Other contributing factors include inflationary increases in utilities such as electricity, water, and heating. General inflation impacts various aspects of the school, as seen in household expenses. For instance, the cost of Chromebooks for students has risen from under $200 to closer to $250. Furthermore, rising health insurance costs for employees and the necessity to maintain competitive wages to ensure proper staffing add to the financial challenges.
Despite the increase in the operational referendum, it is crucial to emphasize that the district will continue to prioritize fiscal responsibility in managing these various financial considerations.
What is a non-recurring operational referendum?
The amount of money that the district can levy for the additional funds is temporary. This is the opposite of a recurring referendum that does not have an end date. This allows the voters to decide in the future if the funds are still needed. Changes in the funding formula by the state in the future could lead to an operational referendum not being needed in the future. At this point though, the state funding has not kept up with inflation based on the consumer price index.
What will happen if the district does not pass the operational referendum?
The district will need to look at making cuts. Any cut would have a direct impact on the students. These cuts could include elective course offerings such as Business, Family and Consumer Science (Home Ec), shop courses, agriculture courses, and Spanish courses. It would also mean a dramatic decrease in the technology, food service, and maintenance budgets. All areas of the district would feel the cut.
How will this operational referendum affect my taxes?
The current mill rate of the district for the 23-24 school year is set at 7.03 mills. The projected mill rate with the passage of this referendum is 6.69 mills. This is a decrease of $34 per $100,000 worth of equalized property value. Click HERE for a more in-depth explanation.
How can the mill rate and taxes drop when the referendum amount increases?
There are multiple reasons for the decrease in mill rate. As we enter the second year of the state biennium budget, the district is able to predict more accurately our sources of income. The general fund levy is projected to decrease by 2.54%. The district is able to lower the levy amount in Fund 80 which includes community education and the district-run childcare. Now with over 5 years of data from the childcare center, the amount levied by the district can decrease. The district was also capable of making a defeasance payment on our Fund 39 debt this current fiscal year while decreasing the mill rate. This defeasance payment on the Fund 39 debt would not occur in the 24-25 school year and beyond to offset the operational referendum increase. This newest mill rate is calculated with a 6% increase in equalized value. In the past couple of years, the equalized value has increased by more than double that value. If this trend continues, the mill rate could drop even lower.
Didn't the district receive Federal Funds due to Covid-19?
The district did receive over a million dollars of one-time money. These Covid relief funds must be spent by September of 2024. The district has budgeted 100% of the funds to be used by this date in order to not lose the one-time funds. The district has used it to update all curricula. Every course from 4K to the senior level has updated materials and curriculum. This was a huge undertaking by the district, but the one-time funds helped to alleviate the financial burden of this implementation. The district also updated lockers for the middle school, purchased new playground material for the elementary, bought new vehicles for the district, bought new furniture for the building, updated Chromebooks, purchased additional cleaning supplies and equipment, and updated flooring throughout the building. These funds were used to help offset major improvements that did not have recurring costs.
Shall the School District of Luck, Polk County, Wisconsin be authorized to continue to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $500,000 per year beginning with the 2024-2025 school year and ending with the 2028-2029 school year, for non-recurring purposes consisting of maintaining current levels of educational programming and operational costs?
Yes, would be in favor of the operational referendum and no, against the operational referendum.
Voting Information
Voting will take place on Tuesday, April 2. Visit My Vote Wisconsin to find your polling place, register to vote, see what's on your ballot, and for absentee information.