The Racine Unified School District (RUSD) Board has approved a $190 million operational referendum for the April 2025 election. District officials warn that without this funding, significant cuts to staff, educational programs, and extracurricular activities may be unavoidable. The proposed referendum aims to secure ongoing revenue for essential expenses, such as teacher salaries, educational supplies, and school safety initiatives.

According to the district, rising costs and an outdated state funding formula have left RUSD facing financial instability. Officials noted that if state funding had kept pace with inflation, the district would have an additional $35 million annually, potentially negating the need for a referendum. Without action, RUSD projects a $20 million budget deficit for the 2025-26 fiscal year, prompting difficult decisions about program reductions and staff layoffs.

The district clarified that the previous 2020 referendum addressed capital projects, such as school renovations, and cannot be used for operational needs. Kristen Anderson, a parent of four, voiced support for the referendum, emphasizing the importance of investing in school safety and staff retention. “Our schools need the resources to remain competitive and secure,” she said.

However, concerns about transparency and long-term costs have emerged regarding the referendum process. The Wisconsin Institute for Law & Liberty (WILL) identified several ways school districts often mislead voters about the true costs of referenda. Key concerns include:

• Misleading Use of Mill Rates: Districts often focus on the mill rate to make the tax impact appear smaller, especially during times of rising property values. This tactic can mask the actual tax burden on property owners.
• Balloon Payments: Referenda are sometimes structured with ballooning payments, where future costs increase significantly over time, leaving taxpayers with unexpected financial burdens.
• Hiding Tax Reductions: Districts frequently fail to inform voters how much tax rates could decrease if a referendum is not approved, preventing them from making fully informed decisions.

WILL has called for reforms requiring districts to disclose the estimated net tax impact per $100,000 of property value, the total cost of referenda (including interest), and the extent of potential tax reductions if a referendum is rejected.

If approved, RUSD’s referendum will maintain operational funding, helping to safeguard class sizes, retain high-quality educators, and sustain vital programs. District leaders argue this investment is critical to the community’s future, but taxpayers must consider these transparency issues as they evaluate the true costs and benefits ahead of the April vote.