On November 3, 2026, residents within the Oconomowoc Area School District will have the opportunity to vote on a recurring operational referendum. If approved, the referendum would close the projected budget deficit. Keep reading for more information about the funding challenges affecting the OASD.
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20 Years of Funding Lagging Behind Inflation
State per-pupil funding for public schools has lagged behind inflation, failing to keep pace with real-world costs for over 20 years, creating structural deficits.
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$11 Million Less Funding Annually
The OASD is one of the lowest-funded districts in Waukesha County, receiving $11 M less each year than our closest neighbor, Kettle Moraine School District.
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$5.8 Million Redirected to Local Public Charter Schools and Private Voucher Schools
Local public charter and private voucher students are funded at a higher amount than OASD students.
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Financial Impact of Declining Enrollment Outpaces Fixed Costs
- Modest enrollment declines are spread across all 8 schools and many grade levels, making it difficult to reduce fixed costs like staffing, utilities, and transportation.
- Under the state's funding formula, the loss of revenue resulting from modest enrollment declines far outpaces the district's ability to reduce its operational costs.
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Personnel Make Up 75% of District Costs
Being one of the lowest-funded districts in the area, it’s increasingly difficult to maintain competitive compensation packages and compete for exceptional staff.
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Reduced Staffing by Over 49 Full-Time Equivalents (FTE) & Cut $9.4M
Over the last four years, the OASD has reduced staffing by over 49 full-time-equivalent positions and cut over $9.4 million from the budget.
- Maximized Operational Efficiencies: The district has exhausted the opportunities for efficiencies in busing, food service, utilities, and technology leases.
- Budget Cuts: School and department budgets, vehicle replacement, capital project budgets, and retiree and employee benefits have been redesigned and reduced multiple times.
OASD's History of Responsible Financial Decisions
Despite funding challenges that have impacted our annual operations, the OASD has taken intentional steps to ensure our district is in a strong, long-term financial position. Keep reading to learn more about the OASD's history of responsible fiscal management.
Positive Fund Balance
Each year we allocate a small amount of our budget towards long-term savings. Over the course of many years, this has helped us generate a positive fund balance. That’s important because the bulk of public school revenue is provided in January, halfway through the academic year. That means we need to start the school year with enough funds to cover expenses through December. Some school districts borrow money to cover these expenses. In the OASD, we have a fund balance that allows us to pay our operating expenses over the first six months of the school year without any borrowing. That saves taxpayers money because we're not paying fees or interest on borrowed money.
Long-Term Capital Projects Fund
Beyond our fund balance, we have also been intentionally saving for long-term capital projects, which include periodic maintenance or smaller construction projects, ensuring our buildings remain safe and clean. These funds can only be used for maintenance or construction projects; they cannot be used for district operational expenses. The OASD created this long-term capital projects fund, called Fund 46, in 2015 to slowly save money to fulfill our obligation to keep our schools and grounds safe and well-maintained. At that time, the District also created a Capital Projects Plan that is updated annually and reflects the future maintenance and equipment replacement needs of our buildings.
In the 2025-26 school year, the proceeds from the sale of the former Meadow View Elementary School property, totalling $1,995,000, were transferred to Fund 46. Fund 46 now has over $15 M, which is also earning interest.
Moody Bond Rating
Through strong fiscal oversight, OASD has attained a Moody's rating of Aa1, something only 12 other school districts in Wisconsin have accomplished. That rating means we'll qualify for a lower interest rate on any money we need to borrow in the future.
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At The Tipping Point
The district has reached a stage where further budget cuts will impact the student and family experience.
- Points of Pride: We pride ourselves on our strong academic programs, steady increases in student achievement, nationally recognized visual and performing arts programs, unparalleled career readiness programs, and strong partnerships with our community. Our schools contribute to Oconomowoc and help make it a destination for businesses and families.
- Changes Ahead: To close projected future budget deficits, the district will have to make changes to class sizes, further reduce staffing, and change or reduce program offerings, negatively affecting the experiences that draw families to Oconomowoc and differentiate us in the region.
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Why An Operational Referendum?
- Closing the Budget Deficit: The proposed referendum would close the anticipated budget deficit in each of the next 5 years to maintain the exceptional educational experiences that differentiate the OASD and the Oconomowoc community.
- Responsible Approach: The operational referendum is structured to fill the anticipated budget deficit each year, not exceed it. After 5-years, the operational referendum (ranging between $2 M and $3 M annually) totals $12.2 M.
- Ensuring Our Exceptional Programs Continue: The operational referendum will close the budget deficit and allow the OASD to maintain current class sizes, support our unique career pathway opportunities, maintain robust academic and career course offerings, sustain partnerships across the community, and compete for talented staff.
Question On The Ballot
Shall the Oconomowoc Area School District, Waukesha, Jefferson and Dodge Counties, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $3,000,000 for the 2027-2028 school year; by an additional $2,000,000 (for a total of $5,000,000) for the 2028-2029 school year; by an additional $2,000,000 (for a total of $7,000,000) for the 2029-2030 school year; by an additional $2,500,000 (for a total of $9,500,000) for the 2030-2031 school year; and by an additional $2,700,000 for the 2031-2032 school year (for a total of $12,200,000 and to remain at that amount thereafter), for recurring purposes consisting of operational and maintenance expenses?
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OASD Mill Rate Below Area Average
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The OASD mill rate is below the statewide and Waukesha County averages and is lower than the mill rate for many area school districts.
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The current Mill Rate estimate for 2026-2027 is $5.65 (the actual rate will be finalized in late October with the adoption of the final budget).
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Mill Rate Projections If The Referendum Passes
- The current mill rate estimate for 2026-2027 is $5.65, which is $.14 lower than the mill rate in 2025-26.
- If the Oconomowoc community supports the operational referendum, the estimated mill rate for 2027-28 through 2030-31 is $5.67, returning to $5.65 for 2031-32. These low mill rates are due to an anticipated increase in equalized property values and a decrease in the district's debt service obligations.
Operational Referendum Estimated Tax Impact for $400,000 Home*
*Based on assessed value, which may differ from fair market value. Assumes a 4% property value increase each year.
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