MASD heads to referendum

Posted: Jan. 17, 2012

Mukwonago Area School District - In April 2007, voters in the Mukwonago Area School District authorized additional funds for the district's operating budget for the next five years.

Now, facing the sunset of that referendum, coupled with dropping enrollment and cuts in state aid, the School Board is going back to voters for more money.

The School Board on Monday approved an operational referendum question that will ask for $11.2 million over the next four years, increasing class sizes slightly but maintaining programs within the district.

The question will be put to voters during the April general election.

The escalating referendum would increase the current tax rate of $9.22 per $1,000 of valuation to $9.41 next year, or about $47.50 annually on a $250,000 home, and $9.98 by 2015-16. Under the referendum, the district would have the authority to levy up to $1 million next year, $2.1 million in 2013-14, $3.7 million in 2014-15 and $4.4 million in 2015-16 totaling $11.2 million over four years.

Deficit

Faced with a $17.3 million shortfall over the next four years, Superintendent Paul Strobel and Director of Business Services Darren Clark spent weeks going over possible reductions before three public hearings on the budget and possible referendum earlier this month. As the Finance Committee went over input from those hearings and considered referendum options, Strobel and Clark presented staffing reductions totaling $775,000 a year by cutting 11 full-time teaching positions, split between elementary and secondary levels, due to declining enrollment.

Enrollment decline

With projected enrollment figures pointing to fewer than 4,500 students by 2016-17, elim inating the smallest class sections would increase class sizes from about 18 or 19 students in elementary grades to class sizes in the mid 20s, according to Strobel. That change would garner $3.1 million in savings over four years. The high school would on average see several students added to classes.

Strobel noted that School Board policy calls for elementary class sizes to be kept under 25 students in all sections or an aide would be added, which is in line with the proposed reductions.

Under the 2007 referendum, the district saw an increase in open enrollment due to maintaining programs, which helped allow the board to under-levy to the tune of $2.8 million over the course of the referendum.

"If we are going to reduce classroom numbers, there will be some buildings that won't be able to accept open-enrollment students," Strobel said. "I believe we can maintain that quality education with those (class size) numbers."

Additionally, the district promised no reductions with the 2007 referendum and lived up to that, Strobel said. "With this, there will be reductions but it is reductions we can handle."

Benefits savings

While the potential cost savings in staff benefits are not yet determined as the district continues work on the employee handbook, the board set a goal of creating $700,000 a year in savings, or $2.8 million over four years. Together with other savings, that would bring the unt sought in the referendum to $11.2 million.

As the district bids out health insurance and retirement benefits, Clark said he doesn't have hard numbers on the potential savings, but anticipated saving about $500,000 a year, mostly on changes with benefit carriers, which would total $2 million over four years.

Responding to several questions received from residents, School Board President Loren Tieman asked for clarification on savings the district has achieved through the state's budget-repair bill, also known as Act 10. Since district employees were already contributing toward pension and health benefits, MASD didn't see the full impact of savings that other districts realized when employees contributed to the state-required level, Strobel and Clark explained.

State aid drop

Tieman also fielded questions from residents about state aid. Clark explained that the base revenue limit was set in the mid 1990s when MASD was a low-spending district, and that has not changed. MASD spends just over $1,000 less per student than neighboring districts, he said. Additionally, Mukwonago is among the highest aided districts, so it stands to lose the most when state aid is cut.

"Remember, as aid goes down, the levy goes up," Strobel said. "Since we received so much aid, we have more to lose."

The district is anticipating a $2.2 million drop in state aid this year and a drop of $3 million next year.

"If state aid would have stayed the same, we would be in good shape right now," Strobel added.

The uncertainty surrounding state aid figures prompted board member Kurt Kaesermann to ask for full levy authority in case aid figures changed, since the board has proved its fiscal responsibility in the past by not taking the full levy amount each year.

"I would rather ask for more and not need it rather than be caught short-handed," said Kasermann. "I don't see this board as being frivolous."

While Kaeserman also questioned the value of holding the referendum as a special election, only Rodell Singert agreed, and the board voted 6-2 to hold the referendum during the April 3 election.