As previously reported, the Menomonie
Board of Education took action this week to reduce the district’s future
liability related to early retirement benefits for employees in the
school district. While this change should help the school district
mitigate a projected “bubble” in the area of budget associated with
these future benefits, it does little to impact the district’s budget in
the next few years.
Much of the school district’s budget
is controlled by the state. Mostly based on enrollment, revenue limits
dictate how much money school districts can raise per student through a
combination of property taxes and state aid. Over the years, and for
various reasons, state officials have also established alternative
school funding mechanisms such as the “school property tax levy credit”
and “per pupil aid” that might or might not impact the district’s
budget. While per pupil aid is funding that impacts school district
budgets through direct payments, any funding increases in general school
aid and the school property tax levy credit only impact our schools if
there is a corresponding increase to the revenue limit. Some reports
make it appear that the state is increasing funding for public schools,
but when revenue limits are not increased, dollars designated for
general school aid or school property tax levy credits are really
intended for a property tax reduction.
Earlier this month, the governor
released his budget proposal for the next biennium, which once again
included significant changes for education in our state. The governor
recommended unprecedented cuts and tuition freezes for the University of
Wisconsin system and a freeze on the revenue limits for K-12 public
school districts, while at the same time continuing to expand the new
private school voucher system. In addition to allowing no increase in
the revenue limit for public K-12 students over the next two years, the
proposal also reduces per pupil aid by $150 per student in 2015-2016. In
Menomonie, that creates a gap of more than $500,000 in next year’s
budget. Per pupil aid is currently slated to return in the second year
of the biennium, but that could change based on other factors in the
state budget.
Current estimates project a budget
deficit in Menomonie of close to $1 million for the 2015-2016 school
year. Nearly half of that deficit is directly related to the proposed
elimination of state per pupil aid. The other half of the deficit comes
from the revenue limit freeze that would be used for projected
inflationary increases such as salaries, benefits, consumables, etc.,
and other changes in school district needs and priorities. Next year’s
budget in Menomonie is also impacted by the need for local funding to
pick up costs for student academic interventions in buildings no longer
qualifying for federal funding.
Having anticipated a possible
reduction in revenue in the next state budget, administrators in
Menomonie have been working for months reviewing programs and staffing
to determine which adjustments could possibly be made to cut costs while
maintaining effective services for our students and community. Over the
next several weeks, we will be collaborating with staff members and
getting more input from the board and other stakeholders as we develop a
budget to be considered in the months ahead. We are hopeful that the
legislative process will improve the fiscal landscape for K-12 public
education before the final state budget is approved, but it is unclear
if legislators (including our local representatives and state senators)
are willing to address these concerns on behalf of the public schools in
our communities.
Should school stakeholders have any
questions about the budget, or anything else in our school district, I
invite you to visit the Administrative Service Center on Pine Avenue or
contact me at 715-232-1642. More information about our schools can be
found on the school district website (www.sdmaonline.com) and on Twitter (www.twitter.com/sdmaonline).