Q. Why do we need to have an operational referendum?
Wisconsin Act 16 implemented revenue limits beginning with the 1993-94 school year. A district’s revenue limit is the maximum amount of revenue it may raise through state general aid and property taxes. When the revenue limits were put in place, the limits were set in relationship to the district’s current spending levels at that time. School Districts such as Tomahawk, that were already low spending districts, were consequently penalized for spending less right from the beginning. Over the years since that time, the School District has moved from receiving a state promised two-thirds state aid funding to the Districts present level of approximately only 5-6 percent. (Please note: What the state does not provide in state aid funding, the local district tax payers are left with financing the remaining portion of the revenue limit amount). At the same time, as fixed costs continued to rise, and expenses continued to increase, the revenue limits have declined and have not kept pace with inflationary increases over the years. Due to this fact, the district was forced make operational cuts and to spend from the district’s fund reserves to balance their operating budget over the past years. The district could no longer afford to do this, as these designated cash reserves ensure the district does not need to short term borrow in the future to cover district expenses, as well as to maintain the designated OPEB (Other post-employment benefit) liability reserves that are required. In certain months, especially in December, January and June, cash reserves are at their lowest levels. Due to the need to maintain fund reserves at these designated minimal levels, and in order to not to be forced to make significant cuts to current educational /co-curricular programs and future student programming needs, the District asked District residents to pass a four year operational referendum in April of 2017. This referendum was successful, and all educational programming was able to be continued. Unfortunately this referendum ends June 30, 2021. In order to continue our current programming we need once again pass another four year operational referendum. Failure to do so, will result in the loss of more than $3,000,000.00 in revenue each year. We are asking that residents to approve this $3,500,000.00 operational referendum to allow us to continue current programming for another four years.
Q. How will a successful referendum affect my property taxes?
Approval of the referendum to exceed the revenue limit would add an additional $3,500,000 in revenues for each of the next four years (2021-22 through 2024-2025). The impact from a successful referendum would have the following average property owner’s financial impact on a home value of $100,000:
| Annual Impact |
Monthly Impact |
| $17.00 |
$1.42 |
Q. How do our current mill rates compare with other area public schools?
According to the 2019-20 Wisconsin DPI statistics, area schools and their mill levy rates for 2019-20 were:
- DC Everest – $10.97
- Marathon – $10.79
- Prentice – $10.17
- Rhinelander - $10.15
- Wausau - $10.06
- Tomahawk - $9.24
- Mosinee – $8.67
- Merrill – $8.56
- Antigo – $7.26
- Northland Pines - $5.89
With the passage of the referendum, the Tomahawk mill rate would raise $0.17. with an average rate of $9.41.
Q. How would the district use the referendum funds?
The funds are necessary to maintain current student educational programming and provide students with updated technology as needed.
The funds would also be used to continue to maintain the PK-12 facility to the same high level that everyone expects and has experienced in the past.
Q. Do other districts face similar financial challenges?
More than half of Wisconsin’s 426 school districts have held similar referenda to exceed the revenue controls. The School Districts of Merrill, Rhinelander and Northland Pines recently passed $2,500,000-$4,600,000 per year operational referendums.
Q. What will happen if the referendum is defeated?
The School Board will need to make some very difficult decisions regarding cuts in staffing, student educational programming, and building maintenance for the next four school years. All areas will be on the table for consideration, since we can no longer afford to continue to dip into the District fund balance to cover the costs for the current educational programming and building maintenance expenses.
It is very likely that there will be future attempts to passing a referendum to avoid further cuts in academic and co-curricular programming.
How can I get informed? During the month of October, the district will be hosting two community forums to provide residents with an opportunity to gather more information on the referendum. The dates and times are as follows:
Tuesday, October 6, 2020 located in the Tomahawk HS Auditorium beginning at 6:00 p.m.
Thursday, October 22, 2020 located in the Tomahawk HS Auditorium beginning at 6:00 p.m.
| 
