MPS board to consider referendum for over $200 million. Here's what it means.

Milwaukee Public Schools leaders are considering asking voters to raise taxes to ultimately provide the district with up to $262 million additional funding annually, according to proposals published Wednesday night.

It would be a significant amount for the district, which is running a $1.5 billion budget this school year to educate about 65,000 students across 156 schools.

School board members will discuss the proposals at a special meeting Thursday night. They may vote the same night to finalize the plan as they approach the Jan. 23 deadline to get it on the ballot this spring.

Here's what to know about the plans.

Why is MPS considering a referendum?

MPS leaders say they are facing a financial crisis. The MPS budget for this school year avoided cutting school staff positions by banking on hundreds of positions going unfilled.

State lawmakers set caps for how much funding MPS and other school districts can receive through state and local taxes. For 15 years, those caps have not risen as much as inflation.

The only way for a district to go over its cap is with a referendum.

What is a referendum?

A referendum is a question on a ballot. School districts in Wisconsin use referendums to ask voters for permission to raise property taxes to provide more school funding, exceeding caps set by the state.

School districts across the state are increasingly relying on referendums to keep their schools operational. A report from Forward Analytics found that 82% of school districts in the state have called for a referendum in the past three decades.

What are the details of the MPS referendum proposals?

MPS published three options Wednesday night for board members to choose from.

Each option allows MPS to increase revenue by a different amount for the 2024-25 school year, ranging from $132 million to $150 million. In all options, the amount rises over each of the following school years by $51 million, then $47 million, and finally another $14 in the 2027-28 school year.

The amount would stop rising after the 2027-28 school year. Depending on which option the board chooses, the amount would top out at between $244 million and $262 million. The district could continue receiving that amount each year thereafter.

The impact to local taxpayers would be offset by state funding. MPS officials estimate that, under the most expensive scenario, Milwaukee taxes would increase by about $107 million for the 2024-25 school year. For a taxpayer with a $100,000 home, that amounts to a $241 increase.

The local tax impact would level off in future years as state funding rises. 

The plans call for MPS to use the funds for "sustaining educational programming" including: career and technical education programs; attracting and retaining certified educators; and improving art, music, physical education and language programs.

When would Milwaukee vote on the MPS referendum?

If approved by the school board, residents of the city of Milwaukee would vote on the referendum during the spring election: April 2. Other races will be on the same ballot, including the presidential primary.

Didn't MPS have another referendum recently?

Milwaukee voters previously approved a referendum for MPS in 2020, with support from 78% of voters. The district will continue collecting $87 million annually in perpetuity as a result of that referendum. MPS has used those funds for recruitment, increasing salaries, and funding teaching positions in kindergarten, music, physical education, art and other specialties.

Its last referendum, in 1993, was rejected by voters. It asked for a $366 million bond issue for new buildings and maintenance.

How to share your views

To speak at the Thursday meeting, register to speak by 3 p.m. Thursday by calling 414-475-8200 or filling out an online form.

Members of the public can also share comments with school board members by emailing governance@milwaukee.k12.wi.us.

The district has also opened a survey about how the district should respond to its financial situation.