Voter Responses to Referenda Seeking to Exceed Revenue Limits

Following voter approval of California's Proposition 13, a body of research has attempted to explain referenda outcomes aimed at restricting public sector tax and spending authority. Evaluating the determinants of voter attitudes toward referenda to exceed spending/revenue limits, however, has received little attention. Using data for all Wisconsin school districts, we examine the outcomes of referenda to exceed revenue caps. A key finding of our research is that when voters support bonding for capital expenditures, they tend also to approve referenda to override revenue limits. This enables school districts to cover new operating costs often associated with new capital projects.