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Tuesday, May 21, 2024

Wisconsin’s Referendum Process Results in Misleading Tax Increases, Leaves Voters in the Dark

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Rick Esenberg President and General Counsel | Official website

Rick Esenberg President and General Counsel | Official website

The Wisconsin Institute for Law & Liberty (WILL) has revealed concerning transparency issues within Wisconsin’s referendum process through its latest report, "Piercing the Fog: Shedding Light on School District Referenda in Wisconsin." The report sheds light on how these problems lead to misleading tax increases and ultimately leave voters uninformed about critical financial implications.

Will Flanders, the Research Director at WILL, emphasized the importance of providing voters with comprehensive information, stating, “Using referendums to fund school districts is not going away, but for voters to make smart decisions, they must be armed with all necessary information." Flanders highlighted the urgent need for reform in Wisconsin's referendum process to ensure voters are fully informed to make informed decisions, asserting that referenda can be a valuable tool for direct democracy when utilized correctly.

The report delves into the significant impact of referenda on Wisconsin schools, with over 90 school districts holding referenda during the 2024 spring elections, of which 58.8% passed. The ongoing debate surrounding the necessity and effectiveness of referenda in funding education has been a persistent issue.

Key findings from WILL's report include the misleading use of the Mill Rate, the presence of Balloon Payments that obscure the full cost of referenda, and the failure to disclose potential tax reductions if referenda are not approved. These findings underscore the urgent need for increased transparency and accountability in the referendum process.

In response to these findings, WILL proposed solutions to enhance transparency, recommending that school districts provide voters with essential information such as the estimated net tax impact, total cost of a capital referendum, and potential tax rate reductions if referenda are not passed. Additionally, WILL developed model legislation to promote transparency, which is detailed in the report.

The report by WILL calls for significant reform in Wisconsin's referendum process to ensure that voters are fully informed about the financial implications of these decisions. It highlights the critical need for transparency and clarity in advocacy materials to prevent misleading tax increases and empower voters to make informed choices regarding school district funding.

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