Why is the Maple Dale-Indian Hill School District asking voters for more money for operations?

Like their neighbors in the Glendale-River Hills School Distrift, voters in the Maple Dale-Indian Hill School District will also have an operational referendum to decide upon come Nov. 5.

The Maple Dale-Indian Hill School Board will ask voters to approve a $1.75 million recurring, or indefinite, operational referendum, according to a district news release.

The neighboring Glendale-River Hills district is asking voters for a $9 million non-recurring operational referendum, also in November.

Here's what to know about the Maple Dale-Indian Hill referendum.

What are the details of the referendum?

If approved, the referendum would provide Maple Dale-Indian Hill with an additional $1.75 million annually, with no end date.

District voters approved a $9.8 million operational referendum in April 2019, which gave the district an additional $980,000 per year for 10 years. Just about halfway through, the November recurring referendum would work alongside the existing non-recurring referendum until it expires in 2029. If the new referendum passes, the district will use a portion of the funds to pay debt rather than levy for debt until 2029, according to district superintendent Timothy Joynt.

"After that, the recurring referendum would remain in effect, ensuring the district can continue providing an exceptional educational experience for our students. In addition, the 2029 levy is projected to decrease due to a change in the district’s debt schedule and the expiration of the existing operational referendum," Joynt said in an email to a reporter.

Joynt also said in the district's news release that the referendum would allow the district to avoid cutting critical programs and services, maintain its facilities and continue delivering a high-quality education to students.

What is the estimated tax impact of the referendum?

If approved, taxpayers would see an additional 10 cents per $1,000 of assessed property on the school tax rate, beginning in 2025-26.

Under the referendum, the owner of a $400,000 home would see an increase of $40 annually in school taxes. After the first year, the tax impact is projected to hold steady, according to Joynt.

"In addition, the 2029 levy is projected to decrease due to a change in the district’s debt schedule and the expiration of the existing operational referendum," Joynt said in an email to a reporter.

Maple Dale-Indian Hill's 2023-24 tax rate was $7.27 per $1,000 of property value.

Why is the district pursuing this referendum?

The district is facing an anticipated $390,108 budget shortfall for the 2024-25 school year. While the district could absorb this year's deficit, it cannot sustain that in the future.

"Rising costs will continue to deplete district resources and force MDIH to cut programs and services for students. Due to the state’s fixed revenue limit for public schools, which has not kept pace with inflation, the district is presenting this long-term solution to its voters," the news release said.

Joynt also said the school board passed a policy in August to ensure good fiscal management of the referendum funding, should it pass. That policy says:

• No more than $800,000 could be used for the operational budget
• The district would maintain reserves that are at least 38% of the ensuing year's budgeted general and special education expenses, with additional funds first being used to replenish the reserves used to offset the 2024-25 budget
• The district would commit at least $200,000 annually to the district's capital improvement fund to support the 10-year capital improvement plan and would limit requests to taxpayers for additional funding
• The district would continue making payments on the 2019 referendum debt to reduce expenses and long-term debt
• The policy would end in June 2029 when the 2019 referendum expires.

When was the district's last referendum?

The district's last referendum was in April 2019. Voters approved two referendums that year: a $16.37 million facilities referendum that addressed what the district deemed "critical" maintenance projects, along with high-priority safety, security and learning space improvements at both Maple Dale and Indian Hill schools; and the $9.8 million non-recurring operational referendum that gave the district $980,000 per year for 10 years. The funding for that referendum ends after the 2028-29 school year.

Contact Alec Johnson at (262) 875-9469 or alec.johnson@jrn.com . Follow him on Twitter at @AlecJohnson12 .

This article originally appeared on Milwaukee Journal Sentinel: Why is the Maple Dale-Indian Hill School District asking voters for more money for operations?