Residents question school referendum ahead of April vote

IOLA – Residents raised concerns about spending, budgeting transparency and enrollment trends during a community information meeting last month about a proposed multi-year operational referendum in the Iola-Scandinavia School District.

Voters will decide April 7 whether to allow the district to exceed its state revenue limit to raise $1.6 million next year and about $2 million annually for the following three years.

Iola-Scandinavia is one of 56 districts across Wisconsin with an operational referendum on the ballot this spring.

About 15 community members attended the Feb. 18 meeting, and the district has scheduled another public meeting at 6 p.m. March 18 at Iola-Scandinavia High School.

District Administrator Chris Nelson said declining enrollment, limited increases in state aid and rising costs have contributed to projected budget shortfalls. He said the referendum would support day-to-day operations and sustain about 88% of district-wide programming.

Several attendees pressed Nelson for clearer line-item budget explanations and asked whether additional spending cuts could be made.

“It’s like we are getting tapped out as the citizens, and we’re all tired of our property taxes going up, and we’re tired of seeing the enrollment going down, but if the enrollment is going down, and that’s where your income comes from, then how does the problem get corrected?” One resident said at the meeting.

The finance formula
Nelson said the problem goes beyond local spending choices, pointing to Wisconsin’s complicated school finance formula that caps how much revenue districts can raise from state aid and local property taxes.

If state aid had kept pace with inflation since 2009, districts such as Iola-Scandinavia would receive about $3,500 more per student each year for operating expenses, amounting to about $2 million more in the 2025-26 school year alone, according to information provided by the district.

The only way public school districts can generate more money past that revenue limit is by asking voters to support going above it through operating referendums. The district has relied on operational referendum funding since voters first approved a measure in 2016 and renewed it in 2020. The current referendum expires at the end of the 2025-26 school year.

If a new referendum is approved in April, homeowners would see an increase of about $102 annually in the school portion of property taxes for a home valued at $250,000. If it fails, homeowners with a home valued at $250,000 would see an annual decrease of about $26 because the current referendum is ending.

Residents at the meeting noted the actual savings would be higher because they would also avoid the proposed increase from the new referendum, meaning their total tax change would reflect both amounts.

One resident said the community might be more supportive if the district showed deeper program cuts.

“This would be a way easier presentation that said, ‘We cut $1.5 million, we lost 15 people in our district, we cut out all these programs to try to keep our head above water,’ then you would get a lot more of us to back you up,” he said.

Nelson said some financial pressures stem from increased student needs, including special education and mental health support. He said the district has taken steps to rein in costs, such as using shared services for specialized staff, reducing staff through attrition and hiring a school psychologist on an as-needed basis rather than full time. He also pointed to efforts to reduce healthcare costs.

The district also sold its bus fleet to Kobussen several years ago to save on costs and now contracts with the company to provide transportation services. Kobussen leases a portion of the district’s garage and stores eight buses there, including those for Iola-Scandinavia’s daily routes, field trips and extracurricular travel. Nelson said the district also stores its own equipment and vehicles at the garage.

Kobussen pays $250 per month to lease the garage space. Some residents questioned whether the lease rate reflects the garage’s market value. Nelson said the district is negotiating a new lease agreement that could increase revenue.

Expense explanations
Resident Dawn Christenson, who did not attend last month’s meeting, said by email that she is concerned about recent district expenditures. Christenson obtained a list of checks issued by the district between Jan. 13 and Feb. 10.

Among the expenditures were $1,500 to Pepsi Cola, $200 to Domino’s Pizza, $5,631 for Sun Country airline tickets, $600 to Silver Lake Lanes for a Christmas party, and about $2,500 in Amazon purchases that included a tutu, snacks, earbuds, fidget balls, snow pants and boots.

“When does the spending stop and consideration be given to the seniors who have made this community and are forced to pay more and more each year?” Christenson wrote.

Nelson said several of the expenses cited were not paid with general district funds. The $1,500 payment to Pepsi Cola was for soda stocked in high school and fitness center vending machines, which generates a small profit for the district, he said.

The $200 payment to Domino’s Pizza covered food for a boys basketball holiday tournament and was paid from the team’s pupil activity account, funded through student fundraising efforts, he said.

The $5,631 in Sun Country airline tickets covered airfare for a softball spring training trip and was paid through the softball pupil activity account. Nelson said the team fundraises for several years to pay for the trip and recently held a Ribfest fundraiser.

The $600 payment to Silver Lake Lanes was for a staff holiday party meal. Staff members paid fees, and the district issued a single check to the venue, Nelson said.

Regarding the Amazon purchases, Nelson said the district places multiple orders each month. He said several items were for musical costumes and supplies paid through the district’s musical account, which is funded by ticket sales, fundraising and donations, not tax dollars.

Other items, including earbuds, were purchased for student use during spring testing. Nelson said while some students provide their own earbuds, the district maintains enough for all students.

At the February meeting, district officials also discussed the potential impact if the referendum does not pass. Nelson said the district would resort to short‑term borrowing “just to get bills” paid and tap its reserve fund balance.

The district has about a 28% to 30% reserve that “would be gone probably in a year” if it does nothing, according to Business Manager Sarah Thiel.

With no referendum funds, Nelson said the district would continue operating “but I don’t know if it would operate the way it is.”