Opinion: Here's why Manitowoc Public School District needs a new operating referendum to avoid the risk of substantial cuts

As the district’s current referendum expires, the district’s projected $5.2 million deficit rises to $9.5 million.

James Feil
Special to Manitowoc Herald Times Reporter USA TODAY NETWORK – WISCONSIN
James Feil

Manitowoc Public School District is an excellent educational institution that provides community students with a high-level learning experience.

However, funding challenges created by an inequitable state funding system, below-average property tax revenues, and the cost of unfunded mandates places MPSD at risk of substantial cuts if the upcoming referendum fails. 

As the district’s current referendum expires, the district’s projected $5.2 million deficit rises to $9.5 million. A new five-year operating referendum replacement is needed to offset this shortfall.

Exacerbating this funding shortfall is the requirement to collect and transfer funds to private and public schools for resident students not choosing MPSD. This transfer now totals $5.5 million.

Add unfunded state and federal mandates exceeding $8 million, and the district’s non-general operating fund transfers total $13.5 million.

Additionally, the state provided no per-pupil increase to school districts over the past two years.

If the state had provided a $200 per pupil increase for the last two years, the district would have had nearly an additional $2 million ($200 x 4,762 students x 2 years). Add this to the $13.5 million, and MPSD would have had $15.5 million more and a balanced budget.

Fortunately, the federal government provided emergency relief funds of $12.5 million over the past three years. Had these funds not become available, MPSD would have faced significant staff layoffs, larger class sizes, more deferred maintenance, and further delays in providing much-needed curriculum, technology and equipment upgrades.

The district has a revenue problem, not an expenditure problem. Unfortunately, the revenue problem is further exacerbated as the state still needs to raise its school funding limits to keep up with inflation.

If per-pupil funding had maintained pace with inflation, MPSD would have about $3,200 more per pupil ($16 million in additional funding annually).

MPSD's per-pupil funding level is also the lowest in Manitowoc County and lower among comparable-size districts within the state.

Funding MPSD at the rates of the other five county districts would provide MPSD $7 million to $17.5 million more annually to cover these essentially inflationary operating increases.

While some of these issues are outside the district's control, the district works to enable all students to reach high achievement and success. Accordingly, the district's results-oriented Board of Education and new leadership team have launched a three-year strategic improvement plan to elevate the achievement of all students.

Despite these funding challenges, MPSD has again set its sails on being a top-tier, high-performing, achieving school district. A beacon for others to follow. A destination point.

The passage of the district's proposed five-year operating referendum will once again enable MPSD to cover inflationary increases, maintain programs and class sizes, and offset some of the cost of maintaining aging facilities, outdated curriculum, technology and capital upgrades.

The good news is that the five-year mill rate is projected to remain below the state average, one of the lowest in the county and state.

The five-year cumulative tax increase on a $100,000 home is estimated at less than $300.

James Feil is Manitowoc Public School District superintendent and can be contacted at 920-686-4781 or feilj@mpsd.school.

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