Focus Newsletter Return of K-12 borrowing little noticed, topped $1.35 billion in 2016

March 6, 2017  •  Vol. 2017 No. 4
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  • Summary
  • Press Release
  • Wisconsin is seeing a resurgence in school district borrowing. Last year, districts approved a record $1.35 billion in new debt. That was 10 times more than five years ago and the most since at least 1993. Another $707.9 million in borrowing is being requested this spring. Voter approval rates for both borrowing (77.1%) and revenue-limit (81.7%) referenda are near or exceeding 80%.

  • Todd A. Berry or Dale Knapp

    Voters Approved $1.35 Billion in School Borrowing Last Year

    Approval Rates of School Referenda Highest Ever

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    MADISON—In 2016, voters in 54 Wisconsin school districts approved $1.35 billion in borrowing for new construction projects. That amount was the highest in at least 25 years and about 30% greater than the inflation-adjusted $1.04 billion approved in 1996, according to a new report from the Wisconsin Taxpayers Alliance (WISTAX). WISTAX is a nonpartisan, nonprofit organization devoted to public policy research and citizen education.
    Although reasons for school borrowing vary, growth is a factor: Over the past five years, in districts where student numbers rose, 55% held debt referenda. Over those same years, voters have approved almost $3 billion in new borrowing. However, that is less than the inflation-adjusted $4.7 billion approved during 1996-2000, the last period of major school construction.
    Debt referenda in 2016 were unusual in several other ways. According to WISTAX research, the 83 proposed were the most since 2001 and 64 approved the most since 2000. The percentage passed (77.1%) was the highest since at least 1993. In February and April of this year, districts are asking to borrow another $707.9 million for building projects.
    The surge in new borrowing comes at a time when referenda to exceed state-imposed revenue limits are passing at record rates. In 2016, 81.7% of these referenda were approved, nearly double the average during 1996-2010 (44%).
    Districts seeking revenue limit exceptions are different from those seeking new borrowing in at least one key aspect: They are likely to be suffering declining enrollment. Of 171 districts with revenue limit referenda in the past five years, 130 (76%) had falling student numbers—the reverse of districts seeking new debt.
    The new WISTAX Focus newsletter, “Return of K-12 borrowing little noticed, topped $1.35 billion in 2016,” is available by visiting; emailing; calling 608.241.9789; or writing WISTAX at 401 North Lawn Ave., Madison, WI 53704-5033. WISTAX is a nonpartisan, nonprofit organization devoted to public policy research and citizen education. o

    (Editor’s Note: An electronic version of this release is available at



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