BRODHEAD - The Brodhead school district needs a referendum to maintain its current programs and facilities, Superintendent Charles Deery told about 100 people in attendance at a public meeting Monday at the high school.
"The (school) board is asking if the community wants to maintain programs or make cuts," Deery said.
Residents gathered at the public hearing - the second public meeting in less than two months - to learn about a referendum for operating expenses.
Deery said declining enrollment and state-mandated property tax revenue caps have left the district with a $393,000 deficit next year; a $567,000 deficit in the 2011-12 school year and a $797,000 deficit for the 2012-13 school year.
The district has three choices to solve the deficit including, the district could cut programs, spend the money in the district's fund balance or pass a referendum, he told those at the high school.
Without a referendum, cuts will have to be made, he said.
"Are the programs something we want to keep?," Deery said.
The property tax revenue cap of 2.5 percent, which allows the district to increase spending only by 2.5 percent, was meant as a temporary measure when it was put in place in 1993, Deery said.
Since the caps were established, costs have continued to increase, including salaries and benefits, which account for about 80 percent of the district's budget.
Brodhead teachers and the district agreed to a pay freeze for the 2010-11 school year, which would save the district about $70,000. Additionally, administrators have agreed to a pay freeze, which would save the district another $17,000 for the 2010-11 school year.
Monday's meeting was meant to answer questions about the referendum as well as the district's finances.
Some residents asked the board why the district pays 100 percent of the teachers' insurance. Most companies don't pay that amount, they said to the board.
Board member Chris Searles said that was an issue that could be discussed when the district and teachers negotiate a new contract.
The board knew residents had questions about the need for the referendum and tried to answer questions discussed at previous meetings.
One of the frequently asked questions of board members is why athletics was no longer on the cut list. Before the Feb. 16 referendum, which failed by a vote of 55 percent to 45 percent, the board told people it would eliminate extra-curricular activities if the first referendum failed.
After it failed, the board decided not to cut sports.
Searles said the board changed its mind after about 150 students took out applications to enroll at other districts. He said if even half of those students left the district, it would lose about $510,000 in state aid.
Board member Susan Welch said the district was hesitant to cut teachers because it would have a negative impact on student achievement.
Welch, who used to be a teacher, said it was difficult to properly educate classes with 35 students.
"There's never enough time to get around to help the students individually," she said. "Teachers educate children, develop relationships with the children and keep parents informed."
Monday's meeting was less contentious than the public meeting Feb. 18 at the high school.
Several people told the board members they thought the board was doing a good job to educate the public about the referendum this time around.
If the referendum passes, Deery explained, the tax rate for 2010-11 would be $8.27 per $1,000 of equalized property value, which is lower than this year's rate of $8.45. In the second year of the referendum, taxpayers will pay $9.52. In the third year, the tax rate will increase to $10.16.
Residents would see their taxes increase and estimated $260 over the next three years, he said.
More information about the referendum is available at the district's Web site, www.brodhead.k12.wi.us.
"The (school) board is asking if the community wants to maintain programs or make cuts," Deery said.
Residents gathered at the public hearing - the second public meeting in less than two months - to learn about a referendum for operating expenses.
Deery said declining enrollment and state-mandated property tax revenue caps have left the district with a $393,000 deficit next year; a $567,000 deficit in the 2011-12 school year and a $797,000 deficit for the 2012-13 school year.
The district has three choices to solve the deficit including, the district could cut programs, spend the money in the district's fund balance or pass a referendum, he told those at the high school.
Without a referendum, cuts will have to be made, he said.
"Are the programs something we want to keep?," Deery said.
The property tax revenue cap of 2.5 percent, which allows the district to increase spending only by 2.5 percent, was meant as a temporary measure when it was put in place in 1993, Deery said.
Since the caps were established, costs have continued to increase, including salaries and benefits, which account for about 80 percent of the district's budget.
Brodhead teachers and the district agreed to a pay freeze for the 2010-11 school year, which would save the district about $70,000. Additionally, administrators have agreed to a pay freeze, which would save the district another $17,000 for the 2010-11 school year.
Monday's meeting was meant to answer questions about the referendum as well as the district's finances.
Some residents asked the board why the district pays 100 percent of the teachers' insurance. Most companies don't pay that amount, they said to the board.
Board member Chris Searles said that was an issue that could be discussed when the district and teachers negotiate a new contract.
The board knew residents had questions about the need for the referendum and tried to answer questions discussed at previous meetings.
One of the frequently asked questions of board members is why athletics was no longer on the cut list. Before the Feb. 16 referendum, which failed by a vote of 55 percent to 45 percent, the board told people it would eliminate extra-curricular activities if the first referendum failed.
After it failed, the board decided not to cut sports.
Searles said the board changed its mind after about 150 students took out applications to enroll at other districts. He said if even half of those students left the district, it would lose about $510,000 in state aid.
Board member Susan Welch said the district was hesitant to cut teachers because it would have a negative impact on student achievement.
Welch, who used to be a teacher, said it was difficult to properly educate classes with 35 students.
"There's never enough time to get around to help the students individually," she said. "Teachers educate children, develop relationships with the children and keep parents informed."
Monday's meeting was less contentious than the public meeting Feb. 18 at the high school.
Several people told the board members they thought the board was doing a good job to educate the public about the referendum this time around.
If the referendum passes, Deery explained, the tax rate for 2010-11 would be $8.27 per $1,000 of equalized property value, which is lower than this year's rate of $8.45. In the second year of the referendum, taxpayers will pay $9.52. In the third year, the tax rate will increase to $10.16.
Residents would see their taxes increase and estimated $260 over the next three years, he said.
More information about the referendum is available at the district's Web site, www.brodhead.k12.wi.us.