MADISON, Wis. — The State Senate on Wednesday approved legislation authored by Senator Rob Hutton (R–Brookfield) and Rep. Amanda Nedweski (R-Pleasant Prairie) to ensure school districts meet basic fiscal accountability standards before asking taxpayers to approve higher property taxes.
Assembly Bill 457 requires school districts to be in compliance with existing Department of Public Instruction financial reporting requirements before placing an operating or capital referendum on the ballot. The bill does not create any new reporting mandates, it simply ensures that currently required financial information is current and complete so voters can make informed decisions before being asked to approve significant tax increases.
“This legislation is about transparency, accountability, and respect for taxpayers. Before a school district asks families who are barely making ends meet and seniors living on fixed incomes to give them more money, it should meet some basic standard of due diligence,” Hutton said.
The bill follows the Milwaukee Public Schools referendum where voters approved a $252 million recurring referendum only to learn afterward that the district was a fiscal mess behind the scenes. That fiasco brought to light serious fiscal mismanagement and raised concerns that voters were asked to make a major decision that will impact their own household budgets without complete information.
AB 457 protects responsible school districts as well. The MPS referendum and its management failures had a statewide fiscal ripple effect that cost many other school districts a portion of their state aid, effectively penalizing responsible districts that have followed the rules.
“When families apply for a loan, no bank would proceed without basic financial documentation. Taxpayers deserve at least that level of assurance when a school district seeks additional revenue. This bill provides a basic safeguard and encourages stronger fiscal stewardship so that other districts don’t follow the path of MPS,” Hutton said.
AB 457 has already passed the State Assembly and now heads to Governor Evers for consideration.
“This bill sets a minimal but necessary expectation of school districts. I hope the Governor recognizes that taxpayers deserve some basic level of protection and signs it,” Hutton said.
