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Less aid may drive up school tax levy
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MONROE - Plugging a projected $1.08 million deficit became harder for the Monroe School District after Business Manager Ron Olson informed the finance committee that the district will receive 3 percent less in state aid than last year.

Olson updated the finance committee last week and said the district would receive $218,000 less than the district projected in the spring. The projections are based on the state Department of Public Instruction's July state aid estimates.

"It's not as good as we would have liked when we looked at it in the spring," Olson said. "We are still trying to get down to a $1-million deficit."

The school board in June approved a $27.71 million 2012-13 preliminary budget that includes a 3-percent reduction from last year and a $1 million deficit. The final budget won't be set until the enrollment count is finalized the third Friday in September, final state aid numbers are in, and the district holds its annual meeting Monday, Oct. 15.

In the spring, Olson estimated the tax levy would decrease about $100,000. But now, Olson said the tax levy will probably increase about $100,000 because of the lower state aid amount.

The district and teacher's total Wisconsin Retirement System contribution will jump from 6 to 6.6 percent.

"It's probably the second largest increase I have seen them make," Olson said. "Our employees and the district who pay into the WRS will probably have a 10-percent kick."

The district cut $233,500 from its budget in March. The cuts include eliminating $40,000 from the high school building budget; cutting $10,000 from the middle school building budget; reducing to part-time a speech and language pathologist; as well as reductions by not filling positions from a middle school aide retirement and a middle school teacher resignation.

The district first built the budget with a stipulation that health insurance rates would not go up more than 5 percent. District leaders approved a new health care insurance carrier with Unity that includes a 3.2 percent increase. Olson said switching to Unity will save the district $96,000 and will save $757,000 in premiums based on the Wisconsin Education Association Insurance Trust's renewal proposal.

Olson said the Delta Dental insurance carrier will save the district $21,500 compared to last year. The district also has a new transportation contract with Lamers that will save about $70,000.

The district purchased iPads for each incoming sixth-grader this year by using $140,000 from last year's curriculum budget. The iPads didn't get to the district by June 30, so they will fall on this year's technology budget.

Olson said the technology budget deficit will be covered by the unused fund balance dollars from the curriculum budget last year.