Is the State Funding Model Really the Problem for the Tosa School District?
Over the past year or two, the Wauwatosa School Board and administration have argued that state funding shortfalls are the root cause of the district’s financial troubles. They claim that without increased state aid, the district cannot sustain necessary programming, staffing, and infrastructure.
But is this truly the issue, or is this narrative masking deeper problems within the district’s financial management, priorities, and spending practices? A deeper dive into the data tells a different story – one that raises serious questions about how Wauwatosa is managing its substantial budget.
UPDATE (March 7, 2025)
Since publishing this update on March 2, we have further reviewed the Wauwatosa School District’s most recent FY (fiscal year) report, which was published June 30, 2024. In this report, you will see the district’s own audit outlines financial oversight and mismanagement, further displaying a disregard for fiscal responsibility.
Per-Student Spending: Wauwatosa vs. Other Districts
Financial Figures & Spending Growth
Recent analysis shows that Wauwatosa is now budgeted to spend $143 million per year on approximately 6,750 students.
In 2022 the district spent $98.68 million and in 2025 the district is budgeted to spend over $143.2 million.
This represents a 45% increase in spending over three years.
The district now spends approximately $21,200 per student (all funds), a substantial increase from prior years.
These spending increases raise critical questions about budget management, as they far exceed inflation rates and typical cost adjustments seen in other districts. The scale of the increase suggests that administrative decisions – not external funding shortfalls – are the primary driver.
Comparisons to Other Districts
Compared to Elmbrook: Wauwatosa spends approximately $21,200 per student, while Elmbrook is budgeted to spend only $17,500 (all funds) – a 21% higher per-student cost despite Elmbrook’s superior academic performance.
Compared to the National Average: The national average per-student spending, according to the Education Data Initiative is $17,700, making Wauwatosa’s cost nearly 20% higher per student.
Key Observations
Wauwatosa’s per-student spending has increased by 45% since 2021-2022.
The funding model worked for nearly 30 years – so what changed? The big jump comparing the current budget to 2021/2022 coincides with the change in the superintendent administration, when spending ballooned.
Arguments about inflation do not hold up – inflation rose 16%, while Wauwatosa’s per-student spending soared 45% in the same period.
Teachers report that additional administrative layers are not benefiting classrooms.
What Is Driving the Spending?
If state funding were truly the biggest issue, wouldn’t we expect Wauwatosa to be on the lower end of the per-student spending spectrum? Instead, the numbers suggest the real problem is not revenue but rather spending inefficiencies, administrative bloat, and misallocation of resources.
Patterns of Mismanagement & Wasteful Spending
Recent financial decisions by the board and administration raise serious concerns about transparency, oversight, and responsible fiscal management:
A No-Bid Contract for Insurance – The board awarded a lucrative insurance contract without competitive bidding, raising concerns about conflicts of interest and whether taxpayers received the best possible deal.
Recycled Projects from the 2018 to 2024 Capital Referendum – Evidence suggests some projects approved in the 2018 referendum were repackaged and resold to taxpayers in the 2024 capital referendum – without clear disclosure.
Budget Error Following a Gap in Oversight – The auditor explicitly identified a gap in monthly financial oversight, which led to a major $4.2 million budgeting error – one that the administration has yet to fully explain.
No Cap on Legal Costs for IEP Litigation – The district has no cost controls in place for legal expenses related to IEP litigation, a growing financial burden with a confusing and opaque budget path for funding.
Inadequate Contract Review for ADA Upgrades to Leased Spaces – The district assumed 100% of the costs for ADA upgrades in leased (not owned) spaces, instead of requiring cost-sharing with the property owner—an unnecessary burden on taxpayers.
Senior Leadership Office Upgrades – While schools struggle with resources, tens of thousands of dollars were spent upgrading senior leadership offices, showing a clear misalignment in spending priorities.
Disbursement Role for 2018 Referendum Funds Went Unfilled for Months – The district failed to fill the position responsible for distributing 2018 referendum funds for months on end, meaning many requests from school leadership went unanswered for months. This begs the question: What happened to that money that was never allocated?
The List Goes On – These are just a few examples. The district’s financial decisions deserve full transparency and scrutiny before any additional taxpayer dollars are requested.
With these repeated failures in oversight, why should taxpayers believe additional funding will be handled any differently?
Referendum Question: How Does Wauwatosa Compare?
It’s true that many Wisconsin school districts went to referendum last year – but does that mean Wauwatosa should, too? Before asking taxpayers for more money, we need to take a hard look at our own budget.
Wauwatosa already spends $21,200 per student, far exceeding Elmbrook ($17,500) — yet student outcomes have not improved.
In three years, spending has jumped by 45%.
This raises a critical question: if spending keeps increasing but performance isn’t improving, what exactly is this money being used for?
Given the evidence of mismanagement, how can taxpayers trust the administration to handle additional funds responsibly?
A forensic audit is the first step. Before Wauwatosa follows the referendum trend, we need full transparency on our budget and assurance that any future funds would actually be used to benefit students – not to expand bureaucracy or fund reckless spending.
Conclusion & Next Steps
With last year’s budget error and ongoing concerns about how funds were allocated from the last referendum, I continue to call for a forensic audit. These calls have repeatedly been ignored and dismissed by the board and administration. As a board member, I will continue to fight for accountability in past spending and referenda and hold the administration and board accountable by demanding transparency.
To truly reform Wauwatosa’s budget and educational outcomes, we must:
Conduct a forensic audit to determine where taxpayer money has gone and whether it has been used effectively.
Prioritize spending that directly benefits students and teachers rather than excessive facilities and administrative costs.
Reform open enrollment policies to ensure that financial sustainability remains a priority.
Align district spending with teacher support and student outcomes rather than bureaucratic expansion.
Hold leadership accountable for reckless spending and demand financial oversight at every level.
The status quo is unsustainable, and too many questions remain unanswered for this to continue. Wauwatosa families, taxpayers, and students deserve better – and I will continue to fight for transparency, accountability, and results-driven budgeting to ensure the district is truly serving its educational mission.
Sincerely,
Christopher K. Merker, CFA, Ph.D.
Candidate for Wauwatosa School Board, Seat #7
