Somerset board reviews multi-year budget shortfalls and outlines possible operational referendum for Nov. 3, 2026

Administrators for the Somerset School District told the board on March 16 that under current assumptions the district faces a growing operational shortfall and began a public discussion about whether to place an operational referendum before voters in November 2026.

Rod, the district budget presenter, said the district projects "a little over $200,000" shortfall next year, rising to "almost $600,000" the following year and approaching roughly $1,000,000 within three years if current trends hold. He said the projection assumes salary growth of about 2.8 percent, higher benefit-cost increases in the first year, declining enrollment and no change to the current state funding model. "It does not include any funds that are set aside for buildings and grounds," he said, adding that major capital repairs are not factored into the operating projection.

The superintendent-level presenter described an accelerated timetable the administration would use if the board elects to proceed quickly: a planning session April 6, detailed projection work through June, a community survey to assess tax tolerance, a latest board resolution deadline in August, and a November 3, 2026, operational referendum on the general-election ballot. "Generally speaking, you want a referendum on a general election," the presenter said, explaining the rationale for timing.

Administrators outlined two categories of referenda in Wisconsin — capital referendums for construction and large projects and operational referendums that seek voter approval to raise local taxing authority for day-to-day school operations — and urged the board to survey the community before final decisions. The presenter recommended a professionally administered, one-time survey mailed and/or emailed to district residents to measure support and tax tolerance.

Board members asked detailed questions about how deficits are carried year to year, and Rod clarified that the projection is calculated annually (it "resets each year"), and about declining enrollment: the district is graduating larger cohorts than it is bringing in at younger grades, which is driving the enrollment decline. The administration said it is preparing scenarios for possible cuts (including changes to class sections, program reductions and targeted personnel reductions) and for a list of about $500,000 in potential cuts the district could pursue if a referendum does not pass.

Administrators also said a portion of the district’s existing debt will fall off in coming years, and restructuring that debt could free up roughly $1,000,000 in capacity with little to no mill-rate increase. The administration said it will return with refined, per‑million cost estimates and the requested survey design.

The board did not take a formal vote on issuing a referendum during the meeting; rather, administrators asked the board to identify follow-up questions and information needs before the April planning session.

Next steps: the board is scheduled to hold a planning session April 6 to review projections and questions requested by board members, and the administration will prepare survey options, refined cost-per-million estimates and scenarios showing the impacts of specified cuts.