Referendum Exploration
Kenosha Unified is projecting a $17 million deficit for the 2026-27 fiscal year. To balance the budget, the district plans to use a combination of position vacancy funds and Fund Balance reserves.
While this approach allows the district to avoid immediate reductions to programs and services, it is a one-time decision that will significantly reduce the district’s reserves and is not a sustainable long-term solution.
The deficit is projected to grow even larger in the 2027-28 fiscal year, further amplifying the need for a long-term solution. As a result, the Board is exploring future budget reductions and a possible operating referendum. No referendum has been approved, and no final budget reductions have been made.
Like many Wisconsin school districts, KUSD’s costs are increasing faster than its available revenue. Expenses such as employee health insurance, utilities, transportation, instructional materials, and other operating costs continue to rise each year. At the same time, state revenue limits restrict the amount of funding school districts can receive from property taxes and state aid.
Overview
- KUSD is projecting a $17 million budget deficit for the 2026-27 fiscal year.
- The 2026-27 deficit will be covered using position vacancy funds and Fund Balance reserves.
- This is a one-time solution and is not a sustainable long-term solution.
- The projected deficit is expected to grow in the 2027-28 fiscal year.
- The Board is exploring budget reductions and a possible operational referendum on April 6, 2027.
- No referendum or budget reductions have been approved.
Potential Solutions Under Consideration
For budget planning purposes, administration has recommended that the Board approve budget reductions before considering whether to place an operational referendum on the ballot.
An operational referendum would provide funding to support the district’s day-to-day operations, including staffing, programs, services, and educational opportunities for students. It would not fund building construction projects.
If the Board decides not to pursue a referendum, or if voters do not approve a referendum, budget reductions would be implemented beginning in the 2027-28 fiscal year.
If the Board goes to referendum and voters approve it, some of those reductions could be rescinded before the start of the 2027-28 school year.
Under Wisconsin law, the Board must approve referendum ballot language at least 70 days before the election. For a potential April 6, 2027, referendum, that deadline is January 26, 2027.
Key Dates/Actions
- April 28, 2026
- Board directs the administration to explore options to address projected deficits, including a possible operational referendum.
- June 23, 2026
- Board reviews potential budget reduction options
- Board removes some proposed reductions from consideration.
- Board identifies April 6, 2027, as the preferred date for a potential operational referendum.
- January 26, 2027
- Deadline for the Board to determine whether to place a referendum question on the ballot and approve the referendum language for an April election.
- If approved, a referendum campaign will begin.
- April 6, 2027
- Potential operational referendum election.
Potential Budget Reductions for 2027-28
The image below is a snapshot from the June 23, 2026, Board report. Important: Items shown are for discussion only and should not be interpreted as approved reductions. No final decisions have been made regarding budget reductions for the 2027-28 school year.
The options illustrate the difficult choices that may be necessary if a long-term solution to the district’s financial challenges is not identified.
On June 23, the Board voted to exclude the items stricken below from future discussions.
| Reference | Est. Savings | Description |
|---|---|---|
| A | -$3,400,000 | Reduce 34 TEACHER FTE Secondary Staffing Push to Limit of Current Policy (-14 MS, -10 HS, -10 Choice) |
| B | -$600,000 | Reduce 6 TEACHER FTE Elementary Staffing Push to Limit of Current Policy |
| C | -$2,000,000 | Increase Class Size Policy by 2 at each level (target 20 FTE, 7 EL, 5 MS, 5 HS, 3 Choice) |
| H | -$2,424,000 | Health Insurance Modifications – Requires plan design changes and/or increased deductibles & MOOP (every % ~$404K) |
| I | -$500,000 | Reduce ESC Staffing |
| M | -$500,000 | Reduce Instructional Coaches at the High School Level (-5.0 TEACHER FTE) |
Since 2022, the district has worked alongside staff and community members to reduce costs, including staffing reductions, budget cuts, program changes, and school closures, to slow the growth of this budget gap. Despite these difficult measures, the financial pressure on our district continues to intensify due to factors beyond local control.
We know our community expects and deserves a district that offers strong academic outcomes and programs and opportunities that help every student thrive. It is heartbreaking to face a reality in which resources do not keep pace with rising costs and students’ needs.
Every day, we see the incredible resilience and talent of our students in classrooms, on stages, and on athletic fields. They are the reason we do this work, and they deserve a story defined by more than a budget or a state report card.
No one in our district wants to implement reductions that would diminish students’ opportunities. A referendum would allow our community to determine the level of investment in educational experiences for current and future students.
We remain committed to our students and to finding a path forward that preserves the high-quality education our community values.
Meetings with Referendum Discussion
- Tuesday, April 28, Regular Board Meeting
- Thursday, May 14, Audit/Budget/Finance Committee Meeting
- Tuesday, May 26, Regular Board meeting
- Monday, June 1, Special Meeting
- Thursday, June 3, Audit/Budget/Finance Committee Meeting
- Tuesday, June 16, Audit/Budget/Finance Committee Meeting
- Tuesday, June 16, Agenda Review Meeting
- Tuesday, June 23, Regular Board meeting
Resources
- Budget Reduction Submissions
- Compilation of Suggested Reductions
- NOTE: The survey shared with parents/guardians, staff and students yielded 259 responses. AI created this list to consolidate recurring themes.
- AST FTE Analysis
- This image illustrates changes in the Administrative, Supervisory, Technical (AST) group over time. In 2018, the district updated its hourly pay schedules. As part of that process, a group of employees classified as “Miscellaneous” was reviewed and reassigned to existing employee groups to better align positions with established classifications, benefits, and handbook provisions. At that time, 35 employees from the Miscellaneous group were reassigned to the Technical category of the AST group. As a result, the total number of employees reported within the AST group increased. This increase reflects the reclassification of existing employees rather than the addition of new AST positions. In addition, the 2026-27 budget includes a reduction of two FTE from the AST group.
Frequently Asked Questions
What deficit is KUSD facing?
The projected deficit for 2026-27 is $17 million.
- Projected 2026-27 Budget Position (with hypothetical salary increases)
- Projected 2026-27 Budget Position (without salary increases)
What factors are driving the need to explore a referendum?
Wisconsin’s school funding system limits the amount of revenue school districts can receive each year from state aid and local property taxes. These revenue limits are tied primarily to state-approved adjustments and student enrollment.
For many years, state funding adjustments have not kept pace with inflation. As a result, the district’s revenue has grown much more slowly than its operating costs. Meanwhile, expenses such as curriculum and instructional materials, utilities, health insurance, transportation, and employee salaries continue to increase.
At the same time, declining enrollment driven by an ongoing decrease in birth rates has reduced the number of students attending the district’s schools. Increased competition from neighboring districts, private schools, charter schools, and other educational options has also contributed to enrollment challenges. Because school funding is closely tied to student enrollment, these trends have further limited the district’s revenue growth.
Unlike private businesses, schools cannot raise prices to offset rising costs. When expenses increase faster than available revenue, districts must reduce spending. Without additional funding, those reductions can affect educational programs, student services, staffing, and other investments that support student learning and success.
What date is being reviewed for a possible referendum?
Tuesday, April 6, 2027.
Where can voters find budget and financial documents?
What types of services and departments are housed at the John J. Hosmanek Educational Support Center (ESC)?
The John J. Hosmanek Educational Support Center (ESC) is the heart of the behind-the-scenes operations that keep KUSD schools running smoothly. While the building may appear large from the outside, a significant portion of its square footage is dedicated to operational functions, including the central kitchen, warehouse, and facilities areas that serve schools across Kenosha.
Inside, teams work together to support our schools through a range of services, including human resources, curriculum and instruction development, special education services, technology services, meal preparation and distribution, facilities and maintenance, communications and family engagement, financial services, and much more.
To give our community a closer look, we partnered with the Kenosha Police Department Drone Team to create this quick video tour that highlights the building’s main areas.
Join us for this brief tour to learn more about the various departments and services housed at the ESC that support our students, staff, and families every day.
Learn more about each department.
Additionally, the ESC will soon welcome the Kenosha County Job Center as our new neighbor, located in the strip mall currently under construction adjacent to the ESC.
Would reducing the number of school days help financially?
No. The state mandates a minimum number of instructional minutes per year. The district maximizes efficiency with bus routes and scheduling while meeting these requirements. Reducing school days would not significantly reduce costs.
Has KUSD considered alternative funding solutions, such as reaching out to philanthropic organizations or implementing a user tax?
Philanthropic support exists, and we are grateful for these partnerships; however, they are not sustainable or anywhere near the level of funding we need for next year and beyond.
A user tax has not been considered, as it is outside the scope of our school board’s authority.
Has the district considered selling the closed school buildings?
On Jan. 28, 2025, the Board approved the transfer of the former Hillcrest building, Jefferson, Kenosha eSchool, KTEC West, McKinley and Washington Middle School from KUSD to the City of Kenosha for redevelopment. The City is overseeing and financing the redevelopment process.
Any profits from the redevelopment and sale of the former Hillcrest building, Kenosha eSchool, KTEC West, McKinley and Washington Middle School—beyond redevelopment costs—will be shared equally between KUSD and the City.
The City will retain any profits from the redevelopment of the Jefferson site in exchange for KUSD’s acquisition of the former KTEC East property.
Why did the district tear down the old Washington Middle School after installing new windows?
To clarify, the window replacement at the former Washington Middle School on Sheridan Road was approved by a previous administration using ESSER funds to improve indoor air quality and support student and staff safety. At that time, the building’s closure was not being considered.
The decision to relocate the school came later through the district’s rightsizing process. The review found significant ADA accessibility, facility condition, and maintenance concerns, including more than $40 million in needed repairs. As a result, the district determined that relocating the school to the newer former EBSOLA building was the most responsible long-term solution.
These were separate decisions made at different times based on different circumstances.
What are the current building capacity and utilization rates?
This chart shows each school’s utilization rate based on the September 2025 student count, along with projected utilization rates for the 2026–27 school year.
When reviewing these figures, it is important to note that utilization rates are based on the number of instructional spaces available in each building. Some adjustments may still occur before the start of the 2026–27 school year. For example:
- Converting certain classrooms to non-instructional spaces (such as secure entrance projects) may affect available capacity.
- Hillcrest recently moved into a larger facility; however, not all rooms in the new space are designated for instructional use and are therefore not included in capacity calculations.
- Capacity calculations include a planning buffer of 8% at elementary schools and 5% at middle and high schools to accommodate enrollment fluctuations and operational needs.
The district’s overall planning target is 80%. Below are approximate projections for the 2026-27 school year:
- Boundary Elementary Schools: 80% utilization
- Boundary Middle Schools: 77% utilization
- Boundary High Schools: 71% utilization
- Choice Schools: 80% utilization
These targets help ensure that schools have sufficient space to support student learning while maintaining flexibility for future enrollment changes.