Frequently Asked Questions - Operational Referendum

The Mequon-Thiensville School District is facing a severe budget crisis, with projected deficits reaching up to $6 million for the 2024-25 school year.

All Wisconsin schools are subject to a revenue limit, which places a cap on the amount of money they can raise through state aid and property taxes. As a result, the MTSD does not receive enough revenue to adequately fund programs and services for students. 

Despite increased funding from the state over the past year, MTSD’s status as a property-rich district limits state aid to only 2.6%, with 97.4% of our revenue coming from local taxes under the revenue limit formula. The fact is that a significant portion of the funding increases from the state have gone toward tax relief for residents rather than providing spendable dollars for the district.

The state-imposed revenue limit on Wisconsin public schools means that the total revenue does not change, thereby exacerbating the funding crisis. Our currently projected $4.7 million deficit increases to $6 million when considering deferred costs such as full cost of living adjustments for staff, maintenance, and technology improvements. 

We are facing these challenges largely due to factors out of our control, including decades of insufficient state funding, inflation, rising operational costs, and unfunded mandates—particularly in special education. The special education funding gap has not been addressed appropriately in the state budgeting process. This means the district absorbs increasing costs without additional support from the state.

In the face of these challenges, district leaders and the Board of Education have worked extremely hard to make the most of every single dollar community members have invested into their community schools. 

In recent years, the district has taken the following actions to reduce costs: 

• Negotiated a health insurance renewal of 8% (down from the 11% rate cap)
• Leveraged attrition savings year over year
• Decreased district-level budgets
• Utilized flexibility granted by the Wisconsin DPI to modify our maintenance of effort calculations for special education costs
• Restructured retiree offerings
• Eliminated the ability for retirees to be covered on the district health plan in retirement
• Made significant plan design changes to our health insurance with the introduction of high-deductible health plans
• Did not negotiate up to the full cost of living increase for teachers and did not award a full cost of living increase across all positions 
• Eliminated positions funded with one-time grant dollars
• Reorganized district leadership personnel
• Moved to self-funded health insurance model

MTSD has already made substantial cuts, including $2.75 million in the last four school years. While we are proud of our financial discipline, we worry about negative impacts to our schools and students over the long term if this trend continues. A referendum is necessary to maintain current programming and provide residents with the high-quality school district they have come to expect.  

Last year, a Community Task Force evaluated the district’s financial needs and developed potential solutions. Made up of members from all areas of our community, the task force reviewed current and projected budget shortfalls, considered alternatives for generating additional revenue, and made a recommendation to the Board of Education. 

The task force recommended a bundled approach for the school district to generate additional revenue. This included the following:

• A non-recurring operational referendum, to be placed on the ballot in November 2024.
• Pursuit of philanthropic efforts to help support programs and services for students. 
• Use of district fund reserves to balance the budget as needed, although this is not a sustainable long-term solution.

This community input has been critical to our planning process. 

The Board of Education is asking our community to approve a $26.4 million non-recurring operational referendum that will appear on the ballot Tuesday, November 5, 2024. If it’s approved, it would expire at the end of the 2028 school year. 

An approved referendum would enable MTSD to:

• Balance the budget without tapping into reserves

• Develop a competitive compensation system for teachers and higher starting wages for support staff members to aid in the recruitment and retention of high-quality educators

• Manage healthcare costs

• Move forward with delayed maintenance projects

• Protect our Aaa bond rating

We believe an operational referendum provides our community an opportunity to share their support for further investment that ensures the high-quality public education and the excellent programming our exemplary school district provides.

MTSD has a proven track record of financial responsibility and has implemented significant cost-saving measures to manage budget shortfalls over the years. For more than a decade, our district has maintained Aaa bond ratings from Moody’s. More recently, we have embarked on a reorganization of our leadership, engaged in debt defeasance, and increased open enrollment. These measures have had a positive impact on our district finances and operations. Legislative advocacy, zero-based budgeting, and a potential bundled approach for long-term stability have all been considered, as well. 

The following strategies were implemented to reduce expenses for the 2024-25 school year budget:

• Did not send staff members for professional development this year at the Summer AVID Institute
• Reduced utilities due to Solar Project
• Halted the performance pay component of our teacher strategic salary system and only paid the cost of living adjustment.
• Deferred building and grounds projects
• Removed furniture purchases for schools
• Removed purchase of Newline panels at Homestead High School
• Held cash in lieu of benefits offering for all staff
• Utilized an increase in common school funds in 2023-24 to purchase Chromebooks early
• Retirement and attrition savings

In addition to the strategies used in building the 2024-25 budget, the MTSD has made substantial cuts to reduce expenditures over time, including $2.75 million in the last four school years.

In recent years, the District has taken the following actions to reduce costs: 

• Negotiated a health insurance renewal of 8% (down from the 11% rate cap)
• Leveraged attrition savings year over year
• Decreased district-level budgets
• Utilized flexibility granted by the Wisconsin DPI to modify our maintenance of effort calculations for special education costs
• Restructured retiree offerings
• Eliminated the ability for retirees to be covered on the district health plan in retirement
• Made significant plan design changes to our health insurance with the introduction of high-deductible health plans
• Did not negotiate up to the full cost of living increase for teachers and did not award a full cost of living increase across all positions 
• Eliminated positions funded with one-time grant dollars
• Reorganized district leadership personnel
• Moved to self-funded health insurance model

Despite our challenges, MTSD continues to achieve the high levels of success that are the hallmark of our community’s public schools. 

Zero-based budgeting involves justifying every expense from scratch, ensuring that every dollar spent helps students achieve and grow, as outlined in our district's strategic plan. Despite this careful approach, our expenses increased due to rising costs of goods and services, combined with flat revenue over the years. 

The zero-based budgeting process categorized expenses into three groups:

• Minimum Level of Service (must do)
• Continuation of Current Services (should do)
• Desired New Service Levels (wishes)

While zero-based budgeting often finds savings in the private sector, it is not as common in public schools. Schools must balance the need to provide quality education with being financially responsible. For our district, zero-based budgeting showed that our existing expenses were already carefully managed and justified, reflecting years of tight budgets due to limited revenue. According to budget expert Don Sovey, MTSD has been highly effective in managing its budget.

Yes. Due to the outdated state funding formula and a lack of aid to schools from the state legislature in recent years, increasing numbers of Wisconsin school districts are turning to their communities to address financial challenges.

According to an analysis by Baird Public Finance, there have been more than 1,400 recurring or non-recurring operational referendum questions on ballots for Wisconsin school districts since 2000. In April 2024 alone, 63 school districts proposed operational referendums in their communities due to the same funding issues MTSD is experiencing.

In short, MTSD joins many other districts statewide and across southeastern Wisconsin in facing these financial challenges. 

The District risks losing its Aaa bond rating because using Fund Balance to cover the budget shortfall would reduce it to 11%. Having a Aaa bond rating offers significant benefits to a public school district:

• Lower Borrowing Costs
• Increased Financial Flexibility
• Positive Public Perception and Trust

In future efforts to balance the budget, a larger deficit would need to be managed to replenish the District’s Fund Balance.

• The state of Wisconsin funds public school districts according to an inequitable formula (based on local property values) that limits state-provided revenue (the Revenue Limit) and forces local control (relying on taxpayers, ie. going to referendum) to make up the difference.
• Philanthropic giving and fundraising takes a lot of time, money, and resources that public schools do not generally have easy access to. Donor relations take time to form and “advancement” offices like those managed by some private schools require several people to operate successfully (ie. USM’s advancement and donor office staffs five people) 
• The amount that can be raised with student fees is controlled and limited by state statute. 
• Public school districts are required by the state to provide a “free” and fair public education to all resident students even though the state does not fully fund this requirement.

The Mequon-Thiensville School District has passed three successful facilities referenda and has not passed two operational referenda.

There are two types of referenda, and two time periods for potential referenda:

• Capital (Facilities) Referenda: Used for building projects such as major remodels, additions, or new buildings.
• Operational Referenda: Used to add to a district’s operations budget. They include a specific amount added on top of the state-imposed revenue limit. There are two types of operating referendums:
• Recurring: Allows for districts to exceed the revenue cap in perpetuity
• Non-Recurring: Allows for districts to exceed the revenue cap for a set period of time. 

The referendum being considered by the community on the November 5, 2024 ballot is a non-recurring operational referendum for $24.6 million over four years. It is a means of increasing revenue due to inadequate state funding for public education and historically high rates of inflation.

A History of Referenda in the MTSD:

In the history of the MTSD, there have been three successful referenda:

• June 1998: The M-T community passed a capital referendum for a major renovation project at Homestead High School. The district has paid off all debt that was incurred from this referendum.
• April 2015: The M-T community passed a $18.2 million capital referendum for remodeling and renovations at all school district buildings to enhance safety and security, and increase our focus on student-centered learning spaces. The debt incurred from this referendum is scheduled to be paid off in 2040.
• April 2020: The M-T community passed a $55.7 million capital referendum. The referendum funded efforts to improve safety and security across the school district and to address building capacity and enrollment growth by adding expansions to our elementary and middle schools, as well as renovating key common spaces, such as restrooms and cafeterias, at all six schools. The debt incurred from this referendum is scheduled to be paid off in 2040.

The Mequon-Thiensville community did not pass non-recurring operational referenda for up to $1.9 million per year over five years in 2002, and $7.5 million over three years in 2006. Passed referenda would have provided the funding necessary for building maintenance, employee retention, and curriculum updates. As a result of the failed 2006 referendum, approximately 40 positions were eliminated over two years, and building budgets were frozen.

If approved, the operational referendum will have an estimated tax impact of $0.73 per $1,000 of equalized fair market property value. For a home with a fair market value of $400,000, the total tax impact over four years is estimated to increase by $948.

See additional tax impact information here.

MTSD’s mill rate (or property tax rate) is lower than both the state average and many of our peer school districts in southeastern Wisconsin.

View the State Average Mill Rate Chart

Our 2023-24 mill rate was $6.81, while the state average was $7.22. Our mill rate was also below our neighboring districts in Shorewood, Brown Deer, Germantown, Elmbrook, Grafton, Menomonee Falls, and Port Washington-Saukville.

View the Mill Rate Comparison Chart

A reassessment does not increase the amount that schools or other local governments collect in taxes.

With a reassessment comes a shift in the tax burden to those whose property values have risen faster than average. This process does not result in new revenue for a town, county or school district. Rather, it generally results in some redistribution of the total amount paid in taxes among property owners. It is a common misperception that a reassessment will automatically increase taxes and/or be a windfall for schools or local governments. This is not the case.

If your assessment changes, you cannot assume your taxes will increase. Your taxes may go up, down or stay the same.

Historically, with increased property assessments, a reduction in the school tax rate is normal. Because the total amount that is collected in taxes is not related to the reassessment, if values have increased, it requires a lower rate to generate the same total amount of revenue.

The impact on your taxes will depend on how your assessment changes in proportion to the assessment changes made throughout your town.

As part of a comprehensive reassessment process, all properties in a municipality will be reviewed. Typically, properties become under-assessed over time when assessments are not kept up to date. How often reassessments take place in a community varies greatly. Some municipalities have assessments that are updated regularly, while others may go decades without a reassessment. How your individual school taxes are affected will depend on how your assessment changes in comparison to the overall change in the community. If you have questions, please contact your local assessor’s office.

An approved referendum would give the district access to the funding necessary to maintain academic programs and extracurricular activities for students across all grade levels. We would be able to maintain our current class sizes, avoid further reductions of teachers and staff, and prevent raising fees for our families. Achieving these objectives would have a real and immediate effect on all MTSD students. 

Without immediate and sustainable funding, MTSD will need to implement budget cuts that could significantly impact the educational experience available to our students.

Potential cuts include eliminating extracurricular activities, increasing class sizes, reducing staff, deferring essential maintenance, and raising fees. These cuts would directly affect the quality of education and increase the financial burden on families.

The district needs to secure adequate funds to ensure our students continue to have access to the opportunities, technology, and resources they need to succeed and thrive—both now and in the years ahead.

Yes. The proposed operational referendum is a non-recurring, four-year referendum. This means it would expire at the end of the 2028 school year unless voters approve a new operational referendum before that time. 

The Board of Education reviewed and discussed four different options when considering an operational referendum dollar amount to place on the ballot. The difference in taxes between Option A (complete continuation of services totaling $29.8 million) and Option B (a final amount totaling $26.4 million) is fairly small. With that said, why didn’t the Board of Education select Option A?

Based on feedback gained from the Community Survey distributed in May 2024, it is not likely that voters would have supported a referendum totaling the amount reflected in Option A, which was nearly $30 million. Option B (final amount totaling $26.4 million) gives the school district the best chance of maintaining current programming and services with increased revenue through an operating referendum at an amount that a majority of voters in the community may support. Though the actual tax impact between the two options is similar, the perception to voters is that the District may be asking too much of taxpayers with a ~$30 million ballot question. Option B also reflects our dedication to reducing expenditures and continuing our work to cut or eliminate costs where possible.

• Potential cuts include eliminating co-curricular activities, reducing staff (increasing class sizes and eliminating course options), deferring essential maintenance, and raising fees. Course options to be reduced would be those with the lowest enrollment (impacting the fewest number of students) and those not required for graduation.
• Programs at risk would include those not required by the state and those not federally mandated: 4-year-old kindergarten, fine and performing arts, and co-curricular options (athletics, clubs and student activities). 
• Outside of instructional staffing, cuts would be made to administrative support staff, student support personnel, and administrators. 
• There would also be less flexibility to support changing needs within a school year. For example, in the event of increased enrollment in any particular grade level cohort, extra sections of classes would not be created, increasing class sizes and the burden on teachers.

We aren’t sure yet. First, it is important to remember that the budget for the upcoming school year will ultimately be determined when variables such as the following are finalized:

• Student Enrollment
• Equalized Property Values
• State Equalization Aid

In 2025-26 and beyond:

• State Funding for Public Education
  • Revenue Limit Authority
  • % of Funded Special Education Costs
• Cost-of-Living Increases (employee compensation and benefits, materials, and services)

Additionally, each year the MTSD administration will engage in zero-based budgeting to arrive at a recommended budget for presentation to the Board and the community, assigning a job and purpose to every single budget line item, and reducing expenses in ways that minimize direct impact to students and leave our excellent educational environment as unaffected as possible.

• Education is a people business. The success of our students is directly linked to the quality of our educators, the relationships formed in the school setting, and the engagement of our students in opportunities and activities that round out their educational experience and growth as learners.
• An unsuccessful referendum would negatively impact:
  • The retention and recruitment of quality teachers.
  • The wide variety of curriculum and program offerings in place to support student engagement.
  • The maintenance of facilities that are safe, secure, and conducive to learning.
  • The services in place to adequately support students academically, socially, and emotionally. 
• MTSD will not be attractive to families or staff members.
• These negative impacts may not be immediate, but they are inevitable.

An approved referendum will increase the overall revenue generated for the school district. Each year, the MTSD administration will engage in zero-based budgeting to arrive at a recommended budget for presentation to the Board and the community. The revenue gained from a passed referendum would allow the District to:

• Maintain competitive compensation and benefits packages to our teachers and support staff members.
• Continue to offer all current academic, athletic, fine/performing arts, and co-curricular offerings.
• Maintain current staffing levels and class sizes. 
• Address deferred maintenance projects (parking lot repairs,
  window replacement, and safety/security resources, etc.) 

Election day is Tuesday, November 5, 2024. This is the general election date in the state of Wisconsin.

District residents can cast their ballots at their usual polling location on Tuesday, November 5. For more information on requesting a mail-in ballot, visit https://myvote.wi.gov/en-us/VoteAbsentee.

Yes, voters may request that an absentee ballot be mailed to them for any reason. However, you must be registered before you can request an absentee ballot. 

If you are registered, you can request an absentee ballot by visiting https://myvote.wi.gov/en-us/VoteAbsentee. Note that you must provide a photo ID with your absentee ballot request.

Eligible voters can register up to election day, and can even register at the polls. 

The deadline to register by mail is October 16, 2024. The deadline to register in person at the City Clerk's Office is November 1, 2024.

To learn more about registering to vote, visit https://myvote.wi.gov/register-To-Vote. Additional information on registration and other deadlines is available at https://myvote.wi.gov/en-us/Voter-Deadlines. 

Voters will see the following question on their ballots on Tuesday, November 5: 

"Shall the Mequon-Thiensville School District, Ozaukee County, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $5,500,000 for the 2024- 2025 school year, by $6,200,000 for the 2025-2026 school year, by $6,900,000 for the 2026-2027 school year, and by $7,800,000 for the 2027-2028 school year, for non-recurring purposes consisting of operational expenses?" 

Please note: This question will appear on the BACK of the ballot, so please be sure to flip your ballot over to vote on this resolution. 

Different school systems provide special education services using various models. Some prioritize inclusion, where students with disabilities are integrated into general education classrooms with support, while others opt for self-contained classrooms or pull-out services where students receive specialized instruction separately. Each model reflects different philosophies on how best to meet the needs of students with disabilities and ensure they receive appropriate support. MTSD believes that the inclusionary model, with approximately 80% of students spending the majority of their time in general education, is best practice in providing effective and meaningful special education services.

The MTSD believes that inclusion benefits all students, not just those receiving special education. The inclusionary model fosters empathy, encourages real relationships, and promotes high expectations for all individuals. Additionally, it emphasizes strengths-based learning and helps students build social, emotional, and behavioral connections. This model supports authentic conversations about differences and is considered a best practice within education, promoting a more integrated school community where students are full and accepted members of the student body.

While the inclusionary model may have higher initial costs due to the need for professional development and collaboration, it often results in long-term savings by reducing future dependency on specialized services. Exclusionary practices, on the other hand, may increase segregation and lead to higher long-term social costs. Moreover, any shift away from the inclusionary model would face significant challenges, as Individualized Education Plans (IEPs) are legally required to meet each student’s needs. Efforts to cut costs without adhering to these legal mandates could result in noncompliance with Free Appropriate Public Education (FAPE) laws, making drastic changes both legally and ethically difficult.

The chart below depicts the enrollment of students with special needs in the MTSD as of October 1 each year from the 2018-2019 school year through the 2023-2024 school year. In addition to this data, the number of students with IEPs for the current school year was projected to be 420 (11.8% of the total enrollment) in June 2024. To date, there are 409 students with IEPs (11.5% of the total enrollment) enrolled in the MTSD. This number could change as some initial special education evaluations already started, and families continue to register and share special education-related documents from previous schools. That said, the current 409 number represents an increase of nearly 90 students with special needs (2.5%) in four years. This is statistically similar to what public schools have seen nationwide since the 2019-2020 school year, with a noted total increase of 1.1 million students identified with special needs since the 2012-2013 school year.

For the 2023-2024 school year, $8,868,021.73 was the overall total cost associated with special education services within the school district. State aid provided the district $2,577,245.56, while federal aid gave $774,193.50. Another $10,857.34 was recouped from other districts. Thus, the total reimbursement was $3,362,296.40. That left the district with a Fund 10 transfer of $5,505,725.33.

• Public school districts are required by law (an unfunded mandate) to provide special education services to students who qualify. These services must be available to students regardless of whether there is the budget to provide them.
• With special education services individualized and legally required, making significant cost reductions are difficult to achieve quickly. As such, the services provided would continue to take a growing percentage of the general education budget. Over time, with adjustments to IEPs, the changes to the program would result in a negative impact to: 
  • The retention and recruitment of quality special education teachers and specialists.
  • The breadth of special education programming
  • The services in place to adequately support students academically,
    socially, and emotionally.

Today’s school environment is more complex and demanding than it was twenty years ago, necessitating a greater number of administrators to manage these expanded responsibilities. The combination of increased data, legal requirements, accountability pressures, and the need for specialized human resource management and communication has made administrative roles essential for the effective operation of schools.

In the MTSD, several factors contribute to the increase in leadership within the District over the years, and each position comes with its own historical context, unique expectations from the community, and professional capacity in the evolution of roles and responsibilities as a means of defining why the number of administrators in the school district has increased over the last two decades. The administrative additions over the last two decades are summarized below.

Technology Department: The MTSD technology department was led into and through the early 2000s by a leader with a teacher contract. Technological advances, increased demands in instructional technology, and student and staff access to technology generated the need for an information and technology director going into the 2011-12 school year. With a district leadership reorganization and in what resulted as a cost savings, the position was dissolved and the administrator role was changed into the Educational Services Department as the Director of Curriculum & Instruction following the 2022-23 school year. 

Curriculum & Assessment: The Director of Assessment and Academic Programs - formerly, Data, Research and Assessment Coordinator position was added for the 2012-13 school year to address the increase in mandated state testing and accountability measures implemented by the state. Compared to twenty years ago, schools now have access to vast amounts of data related to student performance, attendance, behavior, and more. Oversight is needed to analyze this data and use it to inform instructional practices, identify areas for improvement, and ensure that interventions are targeted effectively. In addition, schools face increased accountability for student outcomes. The requirement to track and report on various metrics has grown, with the need for an administrator to be responsible for ensuring data accuracy, maintaining records, and fulfilling state and federal reporting requirements.

Human Resources: Today, schools have more specialized staff, including instructional coaches, technology specialists, and social and emotional support professionals to support student wellbeing. Additionally and as it relates to human resources, schools must navigate an array of local, state, and federal policies as it relates to staffing, and following Act 10, staff hiring and retention became more complex. In the 2013-14 school year, a full-time position was implemented that is now the district’s Chief of Staff position. This administrator is needed to manage the diverse roles of those employed across the school district, ensure proper professional development, and maintain high standards of performance.

Communications: Schools must communicate effectively with a wide range of stakeholders, including parents, community members, and policymakers, and in the last two decades, demands for this communication have only increased. Additionally, with the advent of social media and the 24/7 news cycle, schools must be prepared to communicate quickly and effectively during crises. In the 2013-14 school year, a part-time position was created to support increased needs, community engagement expectations, and the capacity of school and district personnel. Not long thereafter, the position transitioned to full-time. The Chief of Communications position manages district and many school communications and is tasked with helping maintain transparency and building trust within the community.

Student Services: For the 2014-15 school year, in response to increased student needs and requirements for administrative oversight, the school district transitioned from a District-level team of one administrator and two management confidential positions for student services to two administrators and one management confidential position. The second administrator position became necessary as special education needs and requirements increased, school safety became more complex, and the number of students with 504 plans increased, health plans, and plans for English language learner services increased.

Elementary School Leadership: With the largest elementary school enrollment (over 550 students) and the addition of four-year-old kindergarten, an Assistant Principal position was added at Wilson Elementary School for the 2015-16 school year. In alignment with other schools in the area, the additional administrative position at the elementary school came with at least four sections at each grade level. At the time neither of the other two elementary schools in the school district were running as many grade levels at four sections. With the additional classes, the second administrative position supports teacher supervision and evaluation as well as student management. Additionally, the Assistant Principal position provides an increase in visibility and communication with students, staff members, and families.

Recreation/Athletics: In the MTSD, the school district oversees the community’s recreation department, and through the early 2000s, the administrator for the department was also the high school athletic director. The recreation department has significantly grown, annually increasing the number of programs offered and the number of participants served. As such, during the 2016-2017 school year, the District separated the two positions, creating a Director of Recreation.

Based on state data submitted to DPI, for the 2023-24 school year, the MTSD’s student enrollment was 15% higher than Cedarburg. Total staff FTE was 18% higher than Cedarburg: 

• Teachers: +42.23 FTE 
• Paras: +1.27 FTE
• Admin: -2 FTE
• Pupil Services Staff: +9.51 FTE

Every school district is different and in the MTSD, our community has asked for and advocated for broad and comprehensive student programming. Besides having a higher student enrollment, the MTSD offers additional student programming that the Cedarburg School District (CSD) does not. For example: 

• The MTSD offers four world languages vs. three in the CSD. 
• CSD does not have an orchestra program. 
• The MTSD staffs and maintains two middle schools, whereas CSD only has one. 

Across the nation, it is common for high schools with a range of 1,000 to 1,500 students to have one principal and two assistant principals. Many school districts aim for one administrator for every 500–700 students at the high school level. 

High schools with 1,000 or more students often require additional leadership to handle day-to-day administrative tasks, such as student discipline, teacher evaluations, and program oversight. In line with this, assistant principals (APs) at Homestead High School are not simply responsible for supervising students, they also provide administrative leadership and support services to the instructional and non-instructional staff of Homestead High School, including supervision and evaluation responsibilities. Each AP helps oversee two grade levels (Grades 9 & 11 and Grades 10 & 12) and helps facilitate systems and processes related to daily high school operations that occur regardless of fluctuations in total student enrollment. 

In general, the salaries of public employees are lower than those provided to employees in the private sector. As such, benefits are, on average, higher in value and lower cost for employees compared to the private sector. Please refer to the Board’s meeting and discussion on employee benefits held on August 5, 2024. All meeting materials are accessible to the public. 

To be clear, the MTSD is paying less than 90% on both plans offered to employees (86.23% for $500/$1000 deductible plan and 89.41% for HDHP). The District has been paying approximately 89% since at least 2015. Of note, although the percentage covered has stayed relatively consistent, the dollar amount employees pay has gone up fairly significantly on a percent basis and the plan benefits (deductibles/copays/max out of pocket) have been modified where the employees are responsible for more costs.

Please refer to the Board’s meeting and discussion on employee benefits held on August 5, 2024. All meeting materials are accessible to the public. 

Please see below:

Please refer to the Board’s meeting and discussion on employee benefits held on August 5, 2024. All meeting materials are accessible to the public.

If the District paid 80% of health care premiums, the impact would be an approximate savings of $632,466 based on the 2024 budget.

All eligible public school employees are automatically (and required to be) enrolled in the Wisconsin Retirement System (WRS)/Employee Trust Funds (ETF). The current WRS rate is 13.6%, and rates are determined annually. This means the employee share is 6.8% withheld as a payroll deduction and sent to WRS; the employer share is a 6.8% match that is also sent to WRS.

During the 2023-24 school year, the District conducted an extensive market investigation that compared MTSD teacher salaries with other Southeast Wisconsin School Districts, and specifically identified a peer group of ten (10) school districts for use in the investigation. Additionally, the District reviewed all potential sources that provide market intelligence around professional staff compensation levels to inform this comprehensive review. 

Following this recent market investigation, the following points were noted:

• MTSD’s average pay for teachers with a bachelor’s degree is 3% higher than the average of the peer group. 
• MTSD’s average pay for teachers with a master’s degree is 14% higher than the average of the peer group.
• MTSD’s starting rate is comparable to the peer group, albeit about 3% higher.
• MTSD’s highest-paid teachers are at the top of the peer group at 26% higher than the average of all other districts’ highest rates.

From a public sector perspective, MTSD is proud to offer competitive wages and benefits to our educators compared to those in our surrounding geographic area. During our 2023-24 market investigation, the following points were noted: 

• MTSD’s average pay for teachers with a bachelor’s degree is 3% higher than the average of the peer group. 
• MTSD’s average pay for teachers with a master’s degree is 14% higher than the average of the peer group.
• MTSD’s starting rate is comparable to the peer group, albeit about 3% higher.
• MTSD’s highest-paid teachers are at the top of the peer group at 26% higher than the average of all other districts’ highest rates.

From a private sector perspective, we can provide the following information from the Economic Policy Institute regarding the teacher pay penalty:

• Recent high inflation has significantly reduced the average weekly wages of teachers but has had less of an effect on other college graduates. The average weekly wages of public school teachers (adjusted for inflation) decreased by $128 from 2021 to 2022, from $1,457 to $1,329 (in 2022 dollars). In contrast, inflation-adjusted weekly wages of other college graduates stayed about the same from $2,170 to $2,167 over the same period.
• The erosion of relative weekly wages for teachers continued apace in 2022. The weekly wage penalty for teachers (regression adjusted) grew considerably after controlling for factors such as differences in age, education, and state of residence. Calculated this way, the penalty reached a record 26.4% in 2022, a significant change from 6.1% in 1996 for all teachers. For men in the teaching profession, the penalty hit 36.6%, and for women, it was 21.3% in 2022.
• The benefits advantage for teachers has not been enough to offset the growing wage penalty. The total compensation penalty for teachers grew to 17.0% in 2022 from 14.2% in 2021. Large increases in the teacher wage penalty have not been offset by smaller increases in the teacher benefits advantage.

• The relative teacher wage penalty exceeds 20% in 31 states. State-specific estimates of weekly wage penalties for teachers range from 7.6% in New Jersey to 37.4% in Colorado. In 31 states, teachers are paid less than 80 cents for each dollar earned by similar college-educated workers in those states.

Regarding benefits, teachers generally receive a higher share of their total compensation as benefits than other professionals do, partially offsetting the weekly wage penalty. The Bureau of Labor Statistics Employer Costs for Employee Compensation (ECEC) series measures the average employer cost per employee hour worked for total compensation, wages and salaries, and benefits, and costs as a percent of total compensation. Please see the table below for comparisons.

Students interested in entering the workforce upon graduation are supported through MTSD’s Academic & Career Planning (ACP) Program. With guidance from the District’s ACP Coordinator, students begin to research options and assess their interests and strengths in Grade 6, participating in career exploration and pathways through Grade 12. Students interested in pursuing the trades or enrolling in a technical or 2-year college after high school may participate in the Ozaukee Youth Apprenticeship (OYA) program. 

Through OYA, students work in partnership with an employer-identified mentor, specialized classroom instructor, and our ACP Coordinator to receive the best skills and knowledge possible. The apprenticeship requires that students work a minimum of 450 hours to complete a one-year apprenticeship and 900 hours to complete a two-year program.  Upon successful completion of the apprenticeship, students are awarded a Certificate of Occupational Proficiency from the Wisconsin Department of Workforce Development. 

No. The program does not generate revenue in excess of its cost on its own. It does provide an academic benefit to our students and supports families considering where to enroll their students in their early elementary years. MTSD’s four-year-old kindergarten program (4K) generates approximately $415,000 revenue through enrollment. Expenses to run the program total approximately $865,000.

The AVID K-12 system was established in the MTSD with the goal of ensuring high-quality instruction that provides all students with rigorous learning opportunities. AVID’s mission is to “Close the opportunity gap by preparing all students for college readiness and success in a global society.” 

In the MTSD, AVID strategies and professional learning is utilized to develop teacher skills, dispositions, and effectiveness that lead to improvement of teaching craft and student success. As an example, each year after participating in AVID professional learning, 95%-100% of teachers strongly agree that their teaching practices have improved as a result of professional learning. In MTSD, 62% of high school staff are AVID-trained, 60% of middle school staff are AVID-trained, and 64% of elementary school staff are AVID-trained. As part of MTSD’s professional learning plan, we have a strategy to continue to grow the percentage of teachers across the district trained in AVID methodologies. Some MTSD teachers are certified as national AVID Summer Institute Facilitators, which allows us to provide internal AVID professional learning. 

Qualitatively, families and students who are enrolled in the AVID elective have shared great support for the program; some students have returned as alumni to communicate its importance. Teachers throughout the District have shared over the years their support for the professional development provided through AVID. The school district collects data annually to evaluate the return on investment and measure the impact of AVID K-12. To date, it has been an expense valued each year and included in the budget.