Over the past decade, the Genoa City Joint 2 School District has encountered increasing financial challenges driven by state funding levels that have not kept pace with inflation and a decline in student enrollment. The chart below highlights the widening gap between state funding per pupil and inflationary pressures:

• Green Bar: Represents the average inflation rate.

• Yellow Bar: Shows the funding school districts actually received.

• Blue Bar: Illustrates the cumulative difference between the two.

This funding shortfall has had a significant impact. The cost of not receiving full inflationary adjustments over the past 12 years is estimated to amount to $1 million in lost state funding for the district in the current school year.

This gap has left districts, including ours, with fewer resources to address increasing costs for student programming, salaries, benefits, utilities, and facility maintenance.

A steady decline in student enrollment has also impacted the district's revenue, as state funding is partially tied to enrollment numbers. The chart below shows the 10-year enrollment trend alongside staffing data for the district, compiled from data taken from the Wisconsin Department of Public Instruction:

The district has made adjustments to staffing levels in response to these enrollment trends. However, it is important to note that some costs remain fixed despite declining enrollment, such as maintaining appropriate class sizes and meeting program requirements. These fixed costs mean that reducing expenses solely based on enrollment declines is not always possible without affecting educational quality.

Despite proactive cost-management efforts, the rising expenses of operating schools continue to outpace available revenue. This challenge is not unique to our district—many others across the state face similar financial pressures, prompting a growing reliance on operational referenda to bridge funding gaps. As illustrated in the chart below, an increasing number of districts now supplement at least 10% of their revenue limits through non-recurring operational referenda.

Ideally, an increase in state funding would improve the financial position of school districts. However, without sufficient funding, districts typically have three main options to address budget shortfalls:

1. Ask the community for additional funding through a referendum, which often results in a tax increase.

2. Make budget cuts, which can lead to larger class sizes, fewer programs, and reduced services. While budget cuts help, they are not enough to fully close the gap created by large deficits.

3. Borrow money short-term, which provides temporary relief but adds interest costs that strain future budgets.

Other strategies, like seeking grants or improving efficiencies, can help in specific areas but are often not enough to resolve significant budget challenges. Districts must combine these approaches, but even then, the size of the deficit often makes it impossible to cut or save enough to completely eliminate the shortfall.

Passing this referendum would provide essential revenue to support student programs, maintain appropriate staffing levels, and address rising operational costs, while minimizing the need for cuts or borrowing.

As members of our community, the school board recognizes the financial challenges families face due to rising costs and does not take lightly the decision to propose this referendum. The estimated cost of the referendum is approximately $7 per $100,000 of property value. While some community members may find this manageable, others may feel the strain of additional taxes. It is important for voters to weigh these considerations carefully.

Strong schools contribute to the community by providing quality education, which supports the workforce, local businesses, and overall property values. However, each voter’s perspective and priorities may differ, and the decision ultimately rests with the community.

To help residents make an informed decision, the district will host several informational sessions prior to the referendum date. These sessions will provide an opportunity to learn more about the referendum, ask questions, and offer feedback. The meeting details are as follows:

• Tuesday, February 25, 6:00 PM – Brookwood Middle School

• Thursday, March 6, 6:00 PM – Brookwood Middle School

• Monday, March 10, 6:00 PM – Brookwood Middle School

A complete summary of the survey results is available on the referendum page of the district website. Additionally, we encourage residents to visit our website or follow us on social media for updates and further information about the referendum.

For more details or inquiries, residents can reach out to the following contacts:

• Paul Weber (Interim-Superintendent): paul.weber@gcj2.k12.wi.us

• Kim Disalvo (Director of Business Services): kim.disalvo@gcj2.k12.wi.us

• Katie Coari (School Board President): katie.coari@gcj2.k12.wi.us

On April 1, the community has the opportunity to shape the future of our schools by voting on the operational referendum. Voters are encouraged to review the facts, attend informational sessions, and consider the potential implications of the referendum for students, the district, and the community. Regardless of the outcome, the district remains committed to transparency and fiscal responsibility.

We are grateful for the community’s ongoing engagement and encourage all eligible voters to participate on April 1.

1. HOW WILL MY PROPERTY TAXES BE IMPACTED?

If the referendum is approved, the impact on property taxes would be an additional $7 per year for every $100,000 of property value. For example, for a property valued at $300,000, this would amount to an additional $21 annually. This revenue would support operational costs, including programs, staff, utilities, and maintenance. The referendum amount is $1.9 million per year for three years, expiring after the 2027-28 school year.

2. WHY IS THE DISTRICT PROPOSING A THREE-YEAR, NON-RECURRING REFERENDUM INSTEAD OF A PERMANENT INCREASE?

A non-recurring, three-year referendum allows the district to temporarily exceed the state-imposed revenue cap to address immediate financial challenges while maintaining fiscal responsibility. This approach ensures that:

• The district can re-evaluate its financial needs at the end of the three years, rather than making a permanent tax increase.

• The community has future input on funding decisions.

• The district continues to explore cost-saving measures and potential funding increases from the state before seeking further taxpayer support.

3. IS THIS REFERENDUM HAPPENING BECAUSE THE DISTRICT SPENDS TOO MUCH OR DOESN’T MANAGE MONEY WELL?

No, the referendum is a response to financial pressures stemming from:

• State funding that has not kept pace with inflation

• Declining student enrollment

• The expiration of previous funding sources, including federal pandemic relief funds

• Expiration of a 2022, 3 year,  non-recurring operational referendum for $800,000

Many districts across the state face similar challenges and increasingly depend on referenda to address funding gaps. Despite these challenges, the district remains committed to identifying cost-saving measures to ensure financial efficiency.

4. CAN’T THE DISTRICT FIX THE BUDGET SHORTFALL BY SPENDING LESS?

The district has already implemented cost-saving measures, including adjusting staffing levels in response to declining enrollment. However, certain costs—such as transportation, utilities, and facility maintenance—are fixed and cannot be reduced without impacting the quality of education. Budget cuts alone cannot address the significant shortfall without affecting critical programs and services.

5. I DON’T HAVE KIDS IN THE DISTRICT. WHY SHOULD I CARE ABOUT SCHOOL FUNDING?

Strong schools benefit the entire community by:

• Supporting property values – Homes in districts with strong schools tend to have higher resale value.

• Creating a well-educated workforce – This attracts businesses and supports local economic growth.

• Enhancing community vitality – Good schools contribute to a strong and desirable community.

Investing in education ensures long-term benefits, even for those without school-aged children.

6. HOW WILL THE FUNDING BE PHASED IN IF THE REFERENDUM PASSES?

If approved, the referendum would provide $1.9 million annually for three years. The funds would be allocated to:

• Maintaining academic programs

• Covering salaries and benefits

• Addressing operational costs, such as transportation and utilities

The district will ensure transparency in how funds are spent.

7. WHY NOW?

The district faces an immediate budget shortfall due to:

• The expiration of a 2022 referendum ($800,000 annually)

• The depletion of federal pandemic relief funds

• Rising costs and declining enrollment

Delaying action could lead to larger deficits, deeper program cuts, and increased borrowing costs.

8. WHAT HAPPENS IF THE REFERENDUM FAILS?

If the referendum fails, the district may have to make significant budget cuts, which could lead to:

• Larger class sizes – Fewer resources and staff could mean combined classes or reduced instructional support.

• Elimination of programs – Extracurricular activities and specialized educational services may be reduced or eliminated.

• Reduced services – Essential services like transportation and facility maintenance could be impacted.

• Potential borrowing – The district may need to borrow money to cover operational costs, adding interest expenses and increasing financial strain on future budgets.

9. WHY IS STATE FUNDING NOT KEEPING UP WITH INFLATION?

State funding for education is determined by legislation and has not fully accounted for inflationary increases over the past decade. As a result, the district has lost an estimated $1 million in state funding for this year alone due to these shortfalls.

10. HOW CAN I GET MORE INFORMATION ABOUT THE REFERENDUM?

We encourage the community to attend our upcoming Referendum Information Sessions to learn more and ask questions:

• Tuesday, February 25 – 6:00 PM at Brookwood Middle School

• Thursday, March 6 – 6:00 PM at Brookwood Middle School

• Monday, March 10 – 6:00 PM at Brookwood Middle School

Shall the Joint School District Number 2, Village of Genoa City, Town of Bloomfield and Village of Bloomfield, Walworth County, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $1,900,000 per year for three years, beginning with the 2025-2026 school year and ending with the 2027-2028 school year, for non-recurring purposes consisting of sustaining educational programming and school district operations?

Find My Polling Place: https://myvote.wi.gov/en-us/FindMyPollingPlace

Wisconsin Election Commission

Voting Frequently Asked Questions & Absentee Ballot Information

If you have any additional questions, please feel free to contact the following:

Paul Weber - GCJ2 Interim Superintendent
Paul.Weber@gcj2.k12.wi.us
262-279-1053

Kim Disalvo - GCJ2 Business Director
Kim.Disalvo@gcj2.k12.wi.us
262-279-1053

Katie Coari - GCJ2 School Board President
Katie.Coari@gcj2.k12.wi.us