Referendum

Over the past three years, a $13 million deficit has accumulated.  This deficit is the result of inadequate state funding, the lingering effects of historic inflation and rising costs of goods and services, and a low reimbursement rate for expenses associated with providing required special education and English language services to students who qualify.

No, the AASD spends $2,400 less per student than the state average. 

If the district were to spend at the state average this year, we would spend $30 million more than our budget allows.

Yes, but when expenses increase faster than revenue, finances are difficult to manage.  To balance budgets, the district has needed to reduce staffing, which negatively impacts student learning.   

Since 1993, the State of Wisconsin has capped the amount of funding each school district can receive and spend per student. These limits were based on what districts were spending at that time.

Because Appleton was considered a low-spending district in 1993, our funding cap has remained lower ever since—forcing us to invest less per student than most districts in the state.

Appleton spends about $2,300 less per student than the state average. Matching the average would provide roughly $35 million more each year to invest in students’ education. Because Appleton has historically been cautious about seeking additional funding, our spending levels remain lower than most comparable districts.

This year, more than $9.3 million in local property taxes collected for the Appleton Area School District is being redirected by the state to private schools through Wisconsin’s voucher program.

Although these dollars are shown under AASD on local tax bills, they never reach the District—they go directly to private schools. While the overall district tax rate has decreased, the portion sent to private schools has grown, though that change isn’t visible on tax statements.

Tax bills include taxes for various entities, such as the county, municipality, and Fox Valley Technical College. In addition, taxes are assessed to support the Appleton Area School District and the private religious schools in Appleton. However, it's important to note that taxpayer funding to public and private schools is not equal.

For 2025-26, the AASD receives $12,108 in funding per high school student, with approximately $7,265 coming from the State, and local taxpayers contributing the remaining $4,843. In contrast, for 2025-26, private religious schools receive $10,877 per student in kindergarten through eighth grade and $13,371 per student in ninth through 12th grade, entirely funded by local taxpayers.

The amount going to Appleton private schools has tripled since the 2018-2019 school year.

This discrepancy means that if a student attends an AASD high school, the cost to local taxpayers is $4,843. But if that same student opts for a private school with a voucher, the cost to local taxpayers significantly rises to $13,371. 

This year, the State Legislature increased the AASD’s per-student funding by 2.7%, raising it from $11,783 to $12,108, while the funding for private high school voucher students saw a substantial 5.7% increase, jumping from $12,731 to $13,371. The per-student funding provided to private high schools in Appleton now exceeds the funding allocated to public schools. 

Public schools are proud to meet the educational needs of Every Student, Every Day, including those with high-cost special education needs or students learning English as a second language. The AASD will continue to educate and support every student and every family while remaining good stewards of your tax dollars.

Since 2009, state funding has no longer been tied to inflation, meaning revenue has not automatically increased as costs rose. Inflation has steadily widened the gap between what schools receive and what it actually costs to educate students.

As a result, essential expenses like salaries, health care, transportation, and utilities have risen faster than our funding.  The past three years of high inflation have caused expenses to far outpace revenue growth.

Over the past three years, inflation has risen two to three times faster than our allowed revenue increases:

• 2022–2023: No revenue increase; nearly 5% inflation → $1.5 million deficit
• 2023–2024: 3.0% revenue increase; 8.0% inflation → $7 million deficit
• 2024–2025: 2.7% revenue increase; 4.1% inflation → $13 million deficit

These deficits have been covered using district savings, which are now nearly depleted.

We’ve already reduced expenses in facilities, staffing, and operations. However, many costs are legally required, including:

• Transportation and school meals
• Support for English learners
• Services for students with disabilities
• State-mandated testing and curriculum changes

Because the state does not fully fund these requirements, districts must cover the remaining costs locally. Additional large cuts would directly affect student learning and opportunities.

We’ve used district savings to balance budgets for the past three years, but those reserves are now nearly depleted. Continuing to use savings is no longer an option.

No. Federal pandemic relief funds had to be spent by September 2023.  Those one-time funds were never meant to support long-term ongoing operations.

Without additional revenue or voter-approved funding through a referendum, the District may face increasingly difficult decisions that could affect staffing levels, class sizes, and program offerings. Maintaining high-quality education for all students will require long-term community solutions.

An operational referendum allows voters to approve additional local funding for ongoing school operations such as staffing, programs, and student services.

Since 1993, Wisconsin law has required voter approval for districts to exceed state-imposed revenue limits.

Currently, 87% of Wisconsin districts have relied on operational referendums to sustain quality education.

Yes. The 2022 referendum focused on reducing class sizes in early grades, expanding elementary STEM programs, renovating aging buildings, and building a new elementary school in the fast-growing northeast part of our district.

Those funds were dedicated to improving learning environments—not to ongoing operational expenses such as staffing, utilities, or healthcare. The current financial challenges stem from operational funding shortfalls, not capital investments.

Over the past 32 years, Appleton voters have approved four referenda, fewer and smaller than those in most comparable districts. Many districts have increasingly relied on local referenda to sustain staffing, programs, and operations as state funding has lagged behind costs.

With a $13 million deficit at the end of the 2024-2025 school year, the district included options in the survey to cover the deficit or to cover $11 million of the deficit and reduce expenses by $2 million.  The final two options would cover the deficit and add funding for high-need programs to support students with transportation needs, mental health struggles, and other poverty-related challenges. 

Several core expenses continue to rise faster than funding:

• Education Costs: Offering comprehensive programs—from 4K to Advanced Placement and technical education—requires growing investment each year.
• Special Education: The state reimburses only about 25–30% of special education costs, far below the 67% once promised. Over the last four years, AASD has used more than $100 million from its general fund to cover the rest.
• Healthcare: Health insurance costs have been increasing by more than 10% per year.  This is occurring even though the district has made insurance changes to control costs.   
• Salaries: With statewide educator shortages and a competitive job market, attracting and retaining qualified teachers and support staff is more costly than ever.

The District continues to make difficult choices to operate more efficiently while maintaining student programs. Cost-saving measures include:

• Repurposing Columbus Elementary to reduce building and operating expenses
• Relocating a charter school from a rented facility into an existing school with available space
  Reducing staffing costs by not filling some open positions
• Managing healthcare expenses by:
  • Changing insurance carriers to secure better rates
  • Increasing staff contributions to premiums, copays, and out-of-pocket costs

Even with these efforts, rising expenses and limited state funding have resulted in a $13 million budget shortfall.

Healthcare is one of our largest expenses and continues to rise faster than inflation, just as many families and businesses are experiencing. The District has:

• Changed insurance carriers for better rates
• Increased staff contributions to premiums and copays
• ​​​​​​​Partnered with local entities for shared clinics and pharmacy services
• ​​​​​​​Joined a healthcare cooperative
• ​​​​​​​Transitioned to a self-funded plan

Even with these efforts, costs continue to grow and strain the budget.

The district already has 36% fewer administrators than the state of Wisconsin's average.  This is based on the number of administrators per student in each district. 

If the AASD were to be staffed at the state average, 25 more administrators would be needed.