Tax Impact and Frequently Asked Questions

Q: When is the recurring operational referendum and capital referendum? 

A: The School District of West Salem's recurring operational referendum and capital referendum will be held on Tuesday, November 5, 2024. Vote in the village or township in which you live. All polls are open from 7:00 a.m. to 8:00 p.m. You will need a photo ID to vote. 

Q: What are the questions on the ballot? 

A: Question one states, "Shall the School District of West Salem, La Crosse County, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $3,500,000 beginning with the 2025-2026 school year, for recurring purposes consisting of maintaining educational programming, facilities, and buses and paying salary and other operational expenses?"

Question two states, "Shall the School District of West Salem, La Crosse County, Wisconsin be authorized to issue pursuant to Chapter 67 of the Wisconsin Statutes, general obligation bonds in an amount not to exceed $28,000,000 for the public purpose of paying the cost of a school facility improvement project consisting of: construction of a career and technical education addition with a fitness center, construction of a replacement greenhouse and renovations at the High School; construction of a gymnasium addition and renovations at the Elementary School; district-wide capital maintenance, building systems, safety, security, and site improvements; and acquisition of furnishings, fixtures and equipment?"

Q: Why has the School District of West Salem continually gone to an operating referendum every three years since 2019? Where does the money go? 

A: Once a district begins an operational referendum cycle, as we did in April 2019, when the funding from the non-recurring operational referendum expires, the District either needs to ask for a renewal of resources or make budget cuts to our operating expenses. At the end of each non-recurring operational cycle, the previous referendum dollars must be removed from the budget, and a new referendum would need to be placed on the ballot, asking for revenues for a specific amount on a recurring or non-recurring basis. 

Q: Are there school districts in the state that do not have to go to an operational referendum? 

A: Some districts do not have to go to an operational referendum. This is because their enrollment is increasing, and they receive much more state aid than other districts, some of which are based on their per-pupil rate. The current state funding formula happens to work for their districts. 

Q: What other school districts in Wisconsin have gone to operational referendums? Is there a referendum study that shows historical referendums for school districts? 

A: Yes, since 1993, there have been 1,522 operational referendums to exceed revenue caps in the state of Wisconsin. This upcoming November, 80 school districts, including the School District of West Salem, are holding operational referendums. Historical data on referendums in Wisconsin can be found by visiting the Department of Public Instruction page here. 

Q: What can we do to facilitate a change in the school funding formula to fairly address the educational shortfalls? 

A: Contact your local and state legislators. Different organizations throughout Wisconsin have been trying to address this issue for several years, but progress has yet to be made. Every district is unique, so there will always be winners and losers no matter the proposed formula. This makes changing the funding formula very challenging. 

Q: What would happen if the referendum would fail? 

A: If the November 5 recurring operational referendum does not pass, the School Board must consider various options to reduce the 2025-2026 budget by around $ 3 million or about 11% of the general fund budget. Actions could include the following: 

• Increase class sizes to reduce teaching and support staff
• Decrease funds for supplies, equipment, and training
• Delay maintenance projects
• Delay bus replacement
• Reduce co-curricular offerings

Any reductions the School Board and district may make, including the items listed above, would negatively affect the quality of education our students receive and deserve.  

Q: If the SDWS mill rate has remained stable or decreased, why does my property tax bill show an increase?

A: The increase on the school district portion of residents' property tax bill is due to annual increases in the estimated fair market value of the property, which is calculated by the Wisconsin Department of Revenue. Prior to the April 2022 operational referendum, the average fair market value increase for School District of West Salem property owners was 5.54%. Property valuations are typically finalized in the first week of October, providing West Salem with the finalization of numbers for the school district's annual meeting at the end of October.

Q: How is my school property tax determined?

A: Please see the document, Understanding Your Tax Bill. 

Q: Why do school districts use fair market value to calculate property taxes instead of assessed value? 

A: The District's mill rate is determined using the equalized or fair market value of property as determined by the Wisconsin Department of Revenue. The municipalities use the assessed value with an adjustment to get a balance between the assessed and equalized property value. The school district is not receiving more property tax dollars, but the dollars are getting shifted appropriately within the municipality to account for the balance between assessed and equalized value. In Wisconsin, assessed and equalized value are used to apportion property taxes. Uneven changes can shift property taxes between property owners, resulting in higher bills even if the levies remain the same.

DPI Explanation: The two commonly used methods of valuing property in Wisconsin are assessed and equalized. Assessed valuation is property value as determined by the local municipal assessor on January 1 in any given year. Equalized valuation results when the Department of Revenue (DOR) applies an adjustment factor to the assessed value. The adjustment factor incorporates, among other elements, actual property sales in the municipality during the past year and is meant to ensure each type of property has comparable value regardless of local assessment practices.

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