Wisconsin lawmakers are exploring ways to make it easier for school districts to consolidate as they face declining enrollment and financial difficulties.

There are 421 school districts in the state of Wisconsin and about two-thirds are struggling with declining enrollment. According to from the Department of Public Instruction, enrollment for public school districts in the 2025-26 school year fell by about 13,600 students, representing a nearly 2% decrease from last year鈥檚 estimate. Total enrollment across school districts is about 759,800 this year.

Reps. Joel Kitchens (R-Sturgeon Bay), Amanda Nedweski (R-Pleasant Prairie) and Sen. Mary Felzkowski (R-Tomahawk) said during an Assembly Education Committee public hearing Tuesday that declining enrollment is to blame for the financial troubles that schools are facing.

鈥淭he districts that are going to referendum all the time. It鈥檚 almost always because of declining enrollment. It just gets more expensive per student to educate those kids as the districts become smaller,鈥� Kitchens said. 鈥淲e鈥檙e not telling districts this is what you have to do or what you should do. We鈥檙e telling them this is an option for you to consider.鈥�

Schools in Wisconsin have seen a drop of about 53,000 students over a decade, from the 2013-14 to 2022-23 school years. Kitchens pointed to estimates from the Wisconsin Department of Administration that the population in Wisconsin is projected to drop by 200,000 by 2050, noting it will be largely due to the state鈥檚 declining birth rate.

Wisconsin鈥檚 school funding system is based in part on per pupil numbers, meaning that if fewer students are enrolled schools receive decreased funding from the state, even if a district鈥檚 overall costs may not fall.

Kitchens said that having 421 school districts is not going to be sustainable in the long term in Wisconsin and questioned whether there is another state that 鈥渙n a per capita basis has that many鈥� school districts.

Kitchens said the issue shouldn鈥檛 be partisan. He noted that school consolidation is something that the on Wisconsin school funding supported through its recommendations.

鈥淢any districts have used the referendum process to increase the property tax burden on the local residents to backfill the loss in state aid revenue,鈥� Nedweski said. 鈥淢any others have seen them repeatedly fail as property taxpayers are unwilling to raise their taxes to increasingly fund empty schools.鈥� She noted that a recent Marquette Law School Poll found that 57% of participants said they would vote against a referendum request. 鈥淭here is no referendum that can be passed or law that can be signed to single-handedly reverse decades of birth rate declines to alleviate the stresses of declining enrollment in our schools. It鈥檚 clear that a more long-term solution is needed to address these demographic challenges because the status quo is not sustainable.鈥�

Wisconsin has had a record number of school districts go to referendum to help meet costs. But beyond declining enrollment, public school advocates say the burden on local taxpayers asked to fund their schools through referendum has grown mostly due to the fact that state investments in public schools have not kept pace with inflation for almost two decades. In the most recent state budget, Wisconsin lawmakers provided additional special education funding, but opted not to provide any increase in general aid, leaving increased costs to fall on property taxpayers.

State Superintendent Tom McCarthy noted during the hearing that Wisconsin is currently spending the least, proportionally, in state revenue that it has ever spent on schools under the current funding formula. He noted that about 32.1% of state general purpose revenue goes to state general aid to schools, and that percentage used to be around 35%. He also said the conversation about declining enrollment and costs had to include the acknowledgement that school districts鈥� revenue limits have been frozen at different points over the last decade, prohibiting school districts from raising more funds unless they go to referendum to ask voters.

Nedweski said the bills would be useful tools and incentives for districts facing decisions about whether to consolidate.

鈥淏uildings do not educate kids, teachers do,鈥� Nedweski said. 鈥淏y finding efficiencies through voluntary consolidation, districts will be able to reduce overhead and direct resources to the classrooms so that our students can continue to receive a quality education, while taxpayers receive relief on their property tax bills.鈥�

The package of bills would take a number of steps to encourage districts to explore consolidation, including providing financial incentives.

School districts already receive additional aid when they consolidate. For the first five years after consolidation, a consolidated school district gets $150 per pupil. In the sixth year, the aid drops to 50% of what the school district received in the fifth year and in the seventh year, the aid drops to 25% of the fifth year.

would increase that additional state aid to schools that consolidate in 2026, 2027 and 2028 to $2,000 per pupil in the first year. The last six years would be the same as under current law.

Kitchens said that he thought most school districts would be able to decide within a year whether consolidation is something that they want to pursue.

鈥淚鈥檓 very open in the future to extending that deadline, but I think to get it passed, we need to put a sunset on it, so we鈥檙e doing three years,鈥� Kitchens said.

Dee Pattack, executive director of the Wisconsin School Administrators Alliance, noted that the inclusion of 2026 won鈥檛 really be useful for school districts since districts that want to consolidate have missed the opportunity to do so if they haven鈥檛 decided by now for next year. She also suggested that lawmakers look at spreading out the additional aid more gradually, saying that dropping aid from $2,000 to $150 per student creates a cliff.

Kitchens said he would look at amending the timeline included in the bill.

Rep. Francesca Hong (D-Madison) noted that decisions about consolidation can be emotional and personal for communities.

鈥淧ublic schools are the heart of our communities, oftentimes in rural communities, especially. They鈥檙e one of the largest employers. It鈥檚 where you have the most celebrations. There鈥檚 athletic events that are important to everyone in the communities and so this decision of consolidation is deeply complex. It鈥檚 personal for a lot of school districts,鈥� Hong said.

Hong, who is running in the Democratic primary for governor, questioned whether lawmakers had considered just leaving the decisions on consolidation up to local communities altogether, noting that Wisconsin law favors local control of schools.

鈥淭hat鈥檚 why it鈥檚 voluntary. That鈥檚 why we鈥檙e offering these tools. It is not mandatory. We know it鈥檚 going to be difficult,鈥� Kitchens said, adding that Door County used to be full of one-room school houses until there was a consolidation in 1960. 鈥淲hen they consolidated that and formed Southern Door [County] School District, people were out there with pitchforks. It鈥檚 always going to be difficult, but we have to look at the future and what it鈥檚 going to be.鈥�

Kitchens noted that districts are not 鈥渃lamoring鈥� to consolidate and that the option exists as a last resort for most.

鈥淭here are a few that are, and you鈥檒l hear from at least one of them today that really have reached that point where they know it鈥檚 necessary,鈥� Kitchens said. 鈥淲e鈥檙e not hearing districts begging for this.鈥�

Joe Green, district administrator and director of special education for the Greenwood School District, and Chris Lindner, district administrator for the Loyal School District, testified about the rural school districts鈥� journey of consolidation, which their school boards are focused on getting done by July 1, 2028. They said it has been an emotional journey as people are attached to their schools and communities, but that it could be the best option for them.

鈥淚t might be the thing that gets us over the hump to consolidation,鈥� Green said of the new legislative proposal. 鈥淚t might be the funding that our two districts need to put a good plan in front of our communities. It might allow us to do some small projects to make consolidation smoother. There may be small construction, or things that we need to do to retrofit buildings, if that鈥檚 the way that our facility studies go. There鈥檚 a million different scenarios out there on what consolidation can look like. But without that funding, I mean, honestly, with our two districts $150 bucks a kid is $100,000 鈥� not gonna do much with that鈥� it鈥檚 just not going to do much.鈥�

Green said the districts already share bus service and that 50% of their co鈥揷urricular activities are shared. They said that the schools began sharing students and staff due to their difficulty finding adequate staff to deliver instruction in rural Clark County in central Wisconsin.

Lindner said that consolidation could help open up more opportunities for students. 鈥淲e do drama together. If we did not, we would have five to six students that would not be able to do drama because, you know, can鈥檛 do it with five or six kids,鈥� he said.

Lindner said consolidation could also help save money.

鈥淥ur taxpayers are paying a lot of money for our operating referendums,鈥� he said. 鈥淲e tell communities if we do not start working together more, then we will be losing.鈥�

would instruct DPI to provide grants of up to $25,000 to groups of two or more school district boards for the costs of a feasibility study for school district consolidation or whole grade sharing agreements.

Another bill,, would have DPI provide four-year grants of up to $500 per pupil enrolled in a single grade to school districts that enter into a whole-grade sharing agreement, agreeing to educate students at one location.

Felzkowski said that whole-grade sharing is a step before consolidation.

鈥淚t lets them test the waters if they ever want to move to full consolidation,鈥� Felzkowski said, adding that middle and high schools may be able to provide more class offerings, including advanced coursework, to students with grade sharing.

AB 648 would help create new supplemental state aid for consolidated school districts to address differences in school districts鈥� levies when they merge. The measure is meant to address concerns of higher property taxes for residents of low-levy districts when a consolidation takes place.

AB 649 provides the funding for the bills, including $2.7 million for grants to schools that enter whole-grade sharing agreements, $3 million to provide state aid to offset levy limit differences and $250,000 for feasibility studies.

McCarthy of DPI noted at the hearing that there are already several legal and mechanical supports in place to encourage consolidation, and that even with those, the last major consolidation that took place was on July 1, 2018. Two K-8 districts merged to become the Holy Hill Area School District in Richfield.

McCarthy of DPI said the slate of bills being proposed are 鈥渓argely building from past efforts to support and to incentivize consolidation鈥� and that the agency doesn鈥檛 view them as 鈥渁 brand new door that鈥檚 being opened up鈥� to solve problems.

The final bill in the package, , would study what changes should be made to Wisconsin鈥檚 school districts. Under it, DPI would hire a contractor to conduct a study of Wisconsin鈥檚 school districts that looks at current school district boundaries, potential school district consolidations, existing school district facilities, staffing levels and salary scales, the population of school-age children in each school district, and revenue limits and current overall spending.

McCarthy said the agency is most excited about this final proposal. He said it is similar to what and addresses some of the factors that are important to consider when consolidating.

The study would culminate in recommendations for changes to school district boundaries, a survey on the conditions of school district facilities across the state, information on the current and 10-year projection of the population of school-age children in each district and recommendations for school district consolidations that promote efficiency, are geographically feasible and economically viable.

鈥淲e probably owe it to our school partners to take a long look at what are the right geographical boundaries here,鈥� McCarthy said. 鈥淎s we鈥檙e thinking about how to manage this stuff, it might be a good moment in time to slow down and think about how do we sync some of these things up to be a more effective patchwork of schools that are serving our communities?鈥�

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During a rainy recess at Kaaawa Elementary, students in grades kindergarten to six swarmed the school playground, splashing through puddles and racing each other on the field. 

Principal Jennifer Luke-Payne greeted children by name, kicking a soccer ball to some students and allowing others to retrieve play equipment from her office. As a teary-eyed kindergartener passed by, Luke-Payne offered him a hug.

鈥淭hey鈥檙e all my babies,鈥� Luke-Payne said. 

Just over 120 students attend Kaaawa Elementary. On average, Hawaii鈥檚 elementary schools enroll roughly 450 students. 

It鈥檚 financially difficult to run a school with fewer than 250 students, Luke-Payne said, because enrollment plays a large role in determining how much money schools receive each year. Small schools like Kaaawa Elementary struggle to fund key teaching positions when they鈥檙e working with annual budgets of roughly $1 million or less, she added. 

Since 2013, student enrollment in Hawaii鈥檚 state-run public schools has steadily declined. Some neighborhoods have aging populations with fewer young children, while other families have enrolled in charter or private schools.

The number of small schools enrolling 250 students or less has grown from 19 to 35 over the past decade. At these schools, annual budgets have come under greater strain, requiring principals to cut teaching positions or eliminate classes like music or physical education.

Legislators recently approved $6 million to supplement the budgets of small and geographically remote schools next academic year. But the additional money is only good for a year, and principals say small schools need more permanent funding sources to stay afloat. 

Alternatively, DOE has moved to consolidate or close small schools in the past. These closures have drawn strong opposition from the community, but it鈥檚 sometimes necessary when schools are so small they can鈥檛 provide a full range of academic and extracurricular opportunities, said Board of Education Chair Roy Takumi. 

Takumi anticipates the issue of school closures coming to the board during his tenure, but it鈥檚 up to the department to initiate the discussion, he added. 

鈥淏y design, schools should have a useful shelf life,鈥� Takumi said. 

Funding Shortfalls 

Kimberly Kaai runs Maunaloa Elementary on Molokai with a budget of roughly $890,000 a year. 

The school doesn’t have enough money to pay for a teacher for each grade, so the school combines its kindergarten and first grade class, as well as its fifth and sixth grade classes, Kaai said. As of September, Maunaloa Elementary was the second-smallest school in Hawaii and enrolled 43 students.  

The DOE allocates school funding using what’s known as the weighted student formula, a calculation based primarily on the number of students enrolled at each campus. Schools also receive additional money for students with certain characteristics, such as low-income or gifted and talented students. 

鈥淭hat amount from the weighted student formula is definitely not enough to adequately staff our schools,鈥� Kaai said. 

Luke-Payne and Waiahole Elementary Principal Alexandra Obra estimate that small elementary schools need annual budgets of at least $1.38 million. 

Last summer, a DOE committee studying the weighted student formula identified eight small schools, including Waiahole, Kaaawa and Maunaloa Elementary. All eight schools enroll fewer than 150 students and, as of June, had projected budgets of $1.3 million or less.

Under the , the eight schools will receive an additional $250,000 for the 2024-25 academic year. Six geographically remote schools on Big Island, Maui, Lanai and Molokai will also receive additional funding. 

At Waiahole Elementary, Obra said she鈥檚 planning to use the extra money to hire a librarian for the first time. Currently, Obra added, she鈥檚 responsible for checking books in and out and cleans the library on the weekends. 

But small schools aren鈥檛 guaranteed the additional money next year, which can make it challenging for principals to attract and hire teachers, said Marlene Zeug, a consultant who studied small schools and published a report on Kaaawa and Waiahole Elementary in 2022. Principals do their best to fundraise and partner with local organizations to provide more opportunities for their students, she added, but they need a more consistent source of money. 

鈥淭here鈥檚 no easy answers,鈥� Zeug said.

Small Elementary Schools, Honolulu and Windward Districts

Small schools enroll 250 students or less.

Kate Stanley, who served on DOE鈥檚 2023 committee evaluating the weighted student formula, said middle and high schools typically don鈥檛 face the same funding challenges as elementary schools because they have larger student populations. But some secondary schools still face tight budgets amid low enrollment numbers. 

At Jarrett Middle School, Principal Reid Kuba said he needed to cut a teaching position when enrollment was especially low around 2013. But since then, he added, Jarrett Middle has used its low enrollment to its advantage, encouraging more families to send their kids to the school because of its small class sizes and close-knit community. 

Jarrett Middle is still the smallest middle school on Oahu, enrolling 287 students, but Kuba said he hasn鈥檛 needed to reduce staffing in recent years. 

鈥淲e embraced our small school status,鈥� he said. 

The Debate Over Closures

Frederick Reppun remembers hearing discussions about closing Waiahole Elementary when he was a third grader in the 1990s. The school remained open, celebrating its 140th anniversary this year, but conversations around consolidation and closure have persisted. 

Amid budget cuts in 2008, DOE produced nearly a dozen reports looking into the effects of closing and consolidating elementary and middle schools across the state, including Waiahole’s partner school, Kaaawa Elementary. 

Kaaawa Elementary was spared, but the department closed three elementary schools by 2011 鈥� Wailupe Valley in East Honolulu, Keanae Elementary on Maui and Queen Lydia Liliuokalani Elementary in Kaimuki. Keanae hadn鈥檛 enrolled any students since 2003, but community members came out in full force to oppose the closures of Wailupe and Queen Liliuokalani Elementary. 

Randy Moore, who was serving as an assistant superintendent in DOE at the time, said closing the schools wasn鈥檛 an easy decision. The department needed to assess the quality of small schools鈥� facilities, the academic opportunities available to students and what campuses families would attend if their current school closed.

Moore, who rejoined DOE as an interim deputy superintendent last week, said he would be surprised if the department didn鈥檛 resume its assessment of small schools and the value of keeping them open. 

In Kailua, Rep. Lisa Marten said her district could potentially benefit from consolidating schools. 

Kaelepulu, Enchanted Lake and Keolu Elementary Schools fall within a 10-minute drive from one another. All three are small schools, enrolling between 91 and 250 students. 

Because more families are growing older or sending their children to private schools, Marten said, it makes sense to close the smallest school, Keolu Elementary, and send its students to Enchanted Lake, where enrollment had dropped by half in the past decade. Marten said she worries the two schools are struggling to offer important classes like music, art and physical education. 

鈥淲hen the population goes down, you have to adjust,鈥� Marten said. She added that school closures may not work in rural areas where families have fewer educational options.

But Noel Richardson, principal of Enchanted Lake, said consolidating with Keolu Elementary would be difficult. Keolu Elementary currently provides breakfast and lunch to nearby schools, Richardson said, and it could be challenging to find another campus with the kitchen capacity to produce more daily meals. 

鈥淚n an effort to save some money, you鈥檝e created a bigger problem,鈥� Richardson said. 

At Kaaawa Elementary, Luke-Payne said there鈥檚 no shortage of learning opportunities, despite the school鈥檚 small size. Behind the school, Kualoa Ranch has donated a small patch of land where students grow kalo and pound poi at the end of the year. Across the street at Kaaawa Beach, students have grown native plants that help to combat beach erosion. 

The community rallies to support the school, and every child feels valued on campus, Luke-Payne added. 

鈥淚 ask them, 鈥榃ho loves you?鈥�, and they point at me,鈥� she said. 鈥淭hey know it.鈥� 

Civil Beat鈥檚 education reporting is supported by a grant from Chamberlin Family Philanthropy.

This was originally published in Civil Beat.