Middleton referendum discussion highlights tension between property taxes and school funding

Bob Hesselbein and Middleton community members discuss the upcoming school referendum request that will appear on ballots. (Photo by Baylor Spears/Wisconsin Examiner)
Kate Murrain, a realtor and mother of two Middleton-Cross Plains School District students, said she has a couple of questions before she makes her mind up whether to vote for the district’s $118.5 million referendum request.
Murrain told the Wisconsin Examiner that she wants to see a side-by-side comparison of budgets, one of if the referendum passes and one if it fails. Her questions reflect the competing concerns that surfaced in a recent public discussion of rising property taxes and the school district’s troubles meeting rising costs.
“At this point, without any information and being as educated as I need to be I would vote no,” Murrain said, adding she noticed that the meeting was attended by a relatively small group of neighbors who appeared to be pro-referendum. “I was surprised. I expected to walk into 100 people having questions to get better educated. I’m just shocked that this is the turnout.”
Murrain was one of about 20 who gathered in the performing arts center of Middleton High School on Sept. 17 to listen to district leaders explain the request and take questions. The district is holding at least four of these sessions open to the public leading up to the Nov. 3 election.
Middleton’s request is part of a wave of more than 70 school district referendum requests this fall seeking $1.6 billion in support from property taxpayers. Under Wisconsin’s school funding system, there is a cap on how much school districts can bring in through a combination of state aid and property taxes. To exceed the caps, Wisconsin school districts have to go to voters for approval.
Among the requests 17 are for one-time building costs, eight are recurring, to provide permanent support for operating costs, and the remaining are non-recurring, slated to help with operating costs but for a set number of years.
By the end of the year, the total number of referendum requests appearing on spring and fall ballots will total more than 150. Eight of the school districts asking voters for more money in November are trying for the second time this year after a spring request failed.
In April, 75 referendum requests went before voters. According to the Wisconsin Policy Forum, 46 of those passed — a 61.3% approval rate. The Policy Forum found that a similar result in November would represent “a substantial decrease from the 70.1% approval rate in 2024” and the “lowest approval rate of any even-numbered year since 2010, when voters approved 52.7% of referenda.”
The Middleton-Cross Plains School District request is the second largest referendum ask on ballots in November behind Green Bay Area School District, which is seeking $158 million over four years and is currently a party in a lawsuit suing the state over the school funding formula.
Middleton is considered “property rich,” meaning it gets less state aid than other school districts and relies more heavily on property taxes for its budget. According to school leaders, about 80% of the district budget comes from property taxes. The other 20% comes from state aid.
The request would be split to provide $24.9 million in year one of the referendum. That amount would continue the funding the district is currently receiving through a 2022 nonrecurring referendum. The next three years the funding would rise by about 3% each year to account for inflation, so $27.9 million in year two, $31.1 million in year three and $34.6 million in year four.
Bob Hesselbein, the school board president, told the Examiner that the district considered about six different referendum scenarios.
“Like a lot of districts within Wisconsin since 2010, we have been forced to find operational funding with our own community because the state each year is giving us in real dollars less in buying power,” Hesselbein said. “We recognize with the economics going on now in the country, we didn’t want to ask for more because everyone’s hurting.”
The district conducted surveys while working to develop the question. In one survey of about 1,800 community members, 66% said that they would probably or definitely vote for a 2026 referendum. Those who opposed the referendum cited property-tax fatigue, spending reductions and a preference for state level solutions.
Hesselbein said the district hasn’t had a “No Vote” committee form. In other districts, “No Vote” and “Yes Vote” committees will form and can come into contention with one another as residents concerned about rising property taxes are pitted against those who want their schools to be able to meet costs.
One attendee at the recent meeting in Middleton asked for clarification on the actual cost to individual taxpayers of the referendum and said he was worried about how the additional taxes would affect seniors on a fixed income.
An explanatory page provided by the district shows that property taxpayers could expect to pay no additional money in the first year, $21 in the second, $40 in the third and $59 in the fourth. However, the numbers are pegged to $100,000 of property. The district said it provided the information in the form it did so individuals could do the math easily depending on the cost of the house.
“Who has a $100,000 house in Middleton?” the attendee said. “I’d rather see the average house in there, so people can get a feel as to what you’re looking at.”
The average cost of a house is $500,000 in Middleton, meaning in the second year of the budget an average homeowner could expect to pay an additional $105 in property taxes in the second year of the referendum.
“You’re going to be squeezing me,” the attendee said. “You want to keep everything status quo. There’s room to cut.”
If the referendum fails the district will have to cut its budget by about 20%.
Whether the referendum passes or not, the district plans to cut $5 million from its budget, though conversations are just beginning on where those cuts will come from.
“We’re going to probably find ourselves cutting some of the enhancements to education, not the meat of what we do here,” Hesselbein told the Examiner, adding that it likely wouldn’t mean layoffs, but retirements may mean conversations about dividing work among current employees instead of a new hire.
The same retiree who spoke up about the cost of the referendum asked why the district wasn’t turning to state lawmakers.
“I called Sen. [Dianne] Hesselbein’s office last year, and asked, what have you done to get more money?” he said. “I got the typical political run around.”
Gov. Tony Evers and Republican lawmakers tried to pass a deal earlier this year that would have tapped the state surplus to give schools some additional funding and send rebate checks to property taxpayers. The bill failed in the Senate, where most Democrats opposed it, saying it didn’t do enough to help schools or spend money responsibly, along with a couple of Republicans, who opposed the spending.
Since then, progress on school funding changes have been stalled as most politicians have turned their attention to the upcoming elections.
Bob Hesselbein, who is married to the Democratic leader of the Senate, said he had some inside information for the disgruntled taxpayer at the Middleton meeting.
“I happen to know Sen. Hesselbein pretty well,” he said, drawing a few chuckles in the room.
“You can yell and swear all you want,” he added. “In Dane County, we have very pro-education representation in both our Assembly and our Senate. Unfortunately, they’re a minority within the state of Wisconsin, and until the rest of the cities, Wisconsin, come to that realization that their public schools are being damaged, we can’t expect anything different from our local politicians, because that’s the constitutional laws of our state.”
Sen. Hesselbein has said that Democrats will pass legislation to fund public schools in January.
“We are going to be fully there for our public schools, especially when it comes to special education reimbursement,” Sen. Dianne Hesselbein said at a press conference last week. “One thing that school administrators are telling us all across the state — principals as well — that they want to see something they can count on and they want to rely on it.”
Sen. Hesselbein said that her caucus has started having conversations over the summer about what needs to happen, including putting more money into special education and general aid. She said Democrats are also looking at other states to understand how the school funding formula could be changed.
“We’re also looking at a long-term goal of seeing what other states are doing and how they are funding their public schools, but that’s going to take probably a multi-year task to try to figure that all out and talking to our friends in Minnesota, Michigan, Illinois,” Hesselbein said.
Meanwhile, school districts continue to rely on taxpayers to help them meet costs.
Jim Coursey, treasurer of the Middleton school board, explained the stakes to Murrain.
“If we were to lose that 20% of the budget, there will be no question that classrooms will be impacted, that’s too much,” Coursey said. “That’s going to lead to larger class sizes because it’s going to lead to a reduction in the number of staff that we’re going to be able to have supporting. It’s going to lead to elimination of programs.”
Murrain, who said she values the education her children are receiving, remained unconvinced.
“I don’t know, it’s tough… I would need to see exactly where those funds are being allocated,” she said.
























