The referendum question will appear on the Tuesday, April 7, 2026, ballot as follows:

“Shall the Lake Country School District, located in Waukesha County, Wisconsin, be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $800,000 per year for four years, beginning with the 2026-2027 school year and ending with the 2029-2030 school year, for non-recurring purposes consisting of operational expenses?”

The district is asking for an additional $800,000 of general operational revenue from tax payers starting in 2026-2027 and ending in 2029-2030.

Wisconsin school districts typically use two types of referenda: operational and capital.

An operational referendum allows a district to exceed state revenue limits to support daily operations such as staffing, classroom instruction, transportation and student services.

A capital referendum allows a district to issue debt for major facility projects, similar to a home mortgage. Capital referenda are typically repaid over a long period of time and cannot be used for operating expenses.

The April 2026 ballot includes only an operational referendum.

Funding for public schools in Wisconsin is both complex and restrictive. The two main sources of funding for public schools (state aid and property taxes) are subject to a state-imposed revenue cap. 

Revenue cap increases are determined by the state government and are determined through the state biennial budget process. Increases to the revenue cap have not kept pace with inflation (cost of living).  

Although progress was made in recent years to close this widening gap through per-pupil aid, the increase has not closed the gap. In short, this means that as expenses have risen, revenues have not kept up with increasing expenditures.

An operational referendum requests permission from voters to exceed the cap on property taxes, allowing districts to help offset the budget gap. 

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 Lake Country is experiencing.

Lake Country School District is facing a growing structural budget gap that cannot be solved through reductions alone. Despite reducing its operating budget by more than $1.6 million over the past three years, the district continues to face rising costs that outpace available revenue under state law.

Without additional revenue, the district will not be able to continue operating in its current form while preserving the educational quality the community expects.

Consolidation is a complex, multi-year process – typically taking three to four years to study, negotiate, and implement. While consolidation may offer long-term advantages, it cannot be implemented quickly enough to address LCSD’s immediate budget gap. If approved, the referendum would provide temporary, time-limited funding to stabilize district finances while it explores long-term solutions, including potential consolidation with neighboring districts. By the referendum expiration in the 2029-30 school year, LCSD would be able to implement any decisions made during the consolidation study, or residents would have the opportunity to vote on a replacement operational referendum.

In a consolidation scenario, tax rates across participating communities are typically averaged, meaning some residents would see increases and others decreases. For Lake Country residents, who have the second lowest mill rate of all K-8 Feeder Schools, consolidation would likely result in higher property taxes than current levels.

If approved, the referendum would provide temporary, time-limited funding to stabilize district finances for four years. This would allow Lake Country School District to maintain staffing, classes, and essential student programs while continuing to explore and evaluate long-term solutions, including potential consolidation with neighboring districts.

The referendum would automatically sunset at the end of the 2029–2030 school year.

Following the failed 2025 referendums, the district established an Ad Hoc Committee composed of community members to:

• Learn about school funding and financial structures in Wisconsin,
• Explore pathways forward for the Lake Country School District, and
• Gauge community perceptions and priorities regarding the district’s future.

Read Committee Summary Here

Ad Hoc Committee Presentation 8/6/25 (School Finance 101 & LCSD Budget)

Ad Hoc Committee Presentation 8/29/25 (Explanation of LCSD Financial Concerns)

Ad Hoc Committee Presentation 11/6/25 (Potential Paths Forward)

At the same time, the district has already made significant reductions over the past several years, including staff cuts, benefit restructuring and program reductions. Lake Country School District now operates as leanly as possible without compromising educational quality.

Because the majority of the district’s budget is dedicated to staff salaries and benefits, additional reductions would require eliminating core educational services and programs. These reductions alone would still not fully close the projected budget gap.

To address facility needs in 2024, voters previously approved a capital referendum. Capital referendum funds are legally restricted and cannot be used for operating expenses such as staffing or instructional programs.

The operational referendum on the April 2026 ballot is separate and addresses a different financial need.

Approval of the referendum would help preserve appropriate student-teacher ratios, staffing levels, and student programs during a period of financial uncertainty. Without this temporary funding, the district would be forced to consider structural changes that would directly impact students’ educational experience.

A mill rate is the amount of tax charged for every $1,000 of a property’s fair market value.

The district mill rate for 2025-26 of $3.19 was calculated as follows:

• Take the total school-based tax levy: $5,531,306
• Divide it by the District’s total equalized property value: $1,692,836,390
• Multiply the result by 1,000

The referendum’s impact on the mill rate is reflected in the chart below.

If the referendum is approved, the district’s equalized property tax mill rate would increase by approximately $0.13 per $1,000 of fair market property value.

In short, if the referendum fails, the district will start on the path toward dissolution (closing down).

There is a real concern that if the referendum fails, banks may stop providing the usual short-term loans we rely on, which could put the district’s operations at risk for the 2026-27 school year. In fact, some banks have already declined loan requests due to the district’s projected financial outlook.

Because of this, LCSD’s next steps would be to spend down its fund balance and apply for a loan from the State Land Trust before facing insolvency, a serious challenge that would hinder our ability to fulfill our financial obligations.

Even if the State Land Trust loan is approved, it would help support our operations for just one to two years. After that, we may still face insolvency.

If the State Land Trust loan is denied, the district is projected to be insolvent after the 2026-27 school year.

The board is considering consolidation, which is the process of joining two or more independent school districts into a single, larger district.

However, consolidation is a complex puzzle that can take three to four years to study, negotiate and implement, which is why we need additional funding to fully see this process through.

As future planning continues, it is important to keep three things in mind:

• Consolidation requires partnership: Other communities must also want to partner, and the partnership must be mutually beneficial.
• Consolidation can be painful: When districts join together, significant cost savings typically come from closing neighborhood schools and divesting facilities.
  • While merging districts may reduce some administrative overhead, the majority of LCSD’s budget (67%) is dedicated to staff and faculty salaries and benefits. Cutting leadership or administrative costs alone would not meaningfully close the budget gap.
• Educational outcomes must be central to decision-making: Lake Country School District is a leader in educational excellence; what we’re doing works, and any major changes or disruptions must be planned carefully and thoroughly. 

The operational referendum is time-limited and will expire after four years. By that time, the district expects to have clarity on long-term solutions. If needed, residents would have the opportunity to vote on a replacement referendum before the existing one expires.

We’ve reduced our $6 Million budget by over $1.6 million dollars over the past three years through:

• Staff Reductions: 9.46 FTE classroom teachers, 2.3 FTE elective teachers, 1.0 FTE other certified staff, and 1.46 FTE (2,080 hours) support staff.
• Programs Affected by Reductions: Spanish, Band, and Strings.
• Benefits Restructuring:
  • Health Insurance – We are now level, self-funded.
  • OPEB (Post-Employment Benefit) eligibility was sunset and all liability will be off the books by August 2029.
  • Cash benefit reduced.

While all separate school districts, the Arrowhead feeder schools look to share services where possible. Currently, the Lake Country School District and the North Lake School District share School Psychologist Services and the Lake County School District shares Curriculum and Testing support with the Stone Bank School District. Lake Country also partners with the Swallow School District of ELL Services.

In addition to these services, all of the feeder schools, along with Arrowhead Union High School, are also part of a transportation consortium for the bussing of our students.

Beginning in January, the district will offer informal coffee conversations, followed by formal information sessions starting in February. Community members are encouraged to attend, ask questions, and learn more about the referendum and the district’s financial situation on the following dates:

Informal Coffee Conversations w/ Chad Schraufnagel, District Administrator

• Friday, January 9, 2026 at 8:15 a.m.
  • Location - Lake Country School Library
• Friday, January 30, 2026 at 8:15 a.m.
  • Location - Lake Country School Library
• Friday, February 6, 2026 at 8:15 a.m.
  • Location - Lake Country School Library

Information Sessions

• Thursday, February 19, 2026 at 6:00 p.m.
  • Location - Lake Country School Library
• Friday, March 13, 2026 at 8:30 a.m.
  • Location - Lake Country School Library
• Tuesday, March 24, 2026 at 8:30 a.m. and 6:00 p.m.
  • Location- Lake Country School Library

Additional information is available at www.lcs.k12.wi.us/sotd, or residents may contact future@mylakecountryschool.org to schedule a meeting.

You can cast your vote in one of three ways: through absentee mail-in ballots, in-person absentee voting, or in-person voting on election day, April 7, 2026.

Voting hours on election day are 7:00 a.m. to 8:00 p.m. Wisconsin voters are required to show an acceptable voter ID in order to vote. Additional voting information, including about polling places and requesting an absentee ballot, can be found on myvote.wi.gov