MONROE — The School District of Monroe Board of Education held its regular meeting on Nov. 24 at the Bauer Education Center.

District officials presented a comprehensive overview of its Potential Budget Reduction Plan at the meeting. The presentation detailed the financial pressures facing the district, the significant reductions already made in recent years, and the additional cuts that will be required if the community does not approve an operational referendum planned for April 2026.

Structural Funding Challenges Impacting Wisconsin Schools

District leadership emphasized that Monroe’s financial situation reflects a statewide challenge affecting hundreds of school districts. Wisconsin’s revenue limit system — which caps the combined amount of state aid and local property tax revenue — has not kept pace with inflation for more than a decade. In addition, special education mandates continue to outpace state reimbursement, placing further strain on local operating budgets.

Across Wisconsin, 82% of school districts have pursued referendums to sustain staffing and programs. In 2024 alone, 131 districts brought a combined 148 operational referendum questions to voters.

“This is not just a Monroe issue,” School District of Monroe Superintendent, Joe Monroe, noted. “This is a statewide funding challenge.”

The Wisconsin legislature promised to cover 42% of special education costs this year and 45% next year. The first payment, however, was just 35% — far short 90% guaranteed to private voucher schools, which districts lose money to when students open-enroll to one of those schools.

“Imagine you were sharing an apartment with a roommate, who was expected to kick in half of the rent and utilities. You create your personal budget with this arrangement in mind. Then, months later, your roommate decides they are only going to pay you 1/3 of the shared costs,” said District 7 State Senator Chris Larson of Cudahy. “That’s basically what the Wisconsin legislature has done to our public schools for special education costs. Remember, these are for costs already incurred. So school districts have to pull from other areas of the budget or increase property taxes to make up the difference.”

Recent Challenges Lead to Four Years of Staffing Reductions

The District has realized challenges that have forced the organization to become more efficient. Since 2020, district enrollment has declined by 200 students, resulting in a revenue loss of more than $2.26 million. The district’s most recent non-recurring referendum — which had provided $1.5 million annually for eight years — failed in April 2024. As a result, the District has made a series of significant reductions to effectively manage the budget.

Since 2022, the district has reduced 27.8 full-time equivalent (FTE) positions, including both professional and support staff, in an effort to manage rising costs and declining revenues. These reductions reflect years of tightening budgets, restructuring, and service consolidation, all with a focus on protecting classroom instruction. This is an addition to a number of changes made to operations and benefits packages that have also resulted in significant savings.

“We have demonstrated strong fiscal discipline,” said Superintendent Monroe. “But we have reached the point where further reductions will directly impact students, teaching, and learning.”

Potential $2 Million Reduction Plan for 2026—27

If the April 2026 operational referendum fails, the district will be required to implement more than $2 million in additional reductions. These cuts include: 

• 12.5 FTE at the elementary level (classroom teachers, encore teachers, interventionists, and custodians)
  
• 9.0 FTE at the secondary level (core teachers, CTE/FCS/PE positions, and at-risk specialists) 
• 1.0 FTE district-wide reduction in the AV Center 

The additional reduction of 22.5 FTEs would result in larger class sizes, fewer intervention and at-risk supports, decreased elective options, and significant program changes. Specifically, these reductions would lead to the elimination of the Family and Consumer Sciences program at Monroe Middle School and limited access to Advanced Placement, Career and Technical Education, and foreign language offerings.

Commitment to Transparency and Fiscal Responsibility

Superintendent Monroe reaffirmed the district’s commitment to responsible stewardship of taxpayer dollars and transparent communication with the community.

Even with a successful referendum in April, the district recognizes the need to identify recurring cost savings to offset inflationary pressures. As part of this ongoing effort, the district will reduce $285,000—$380,000 in staffing through the elimination of 3-4 teaching positions based on class size analysis and program restructuring. These reductions will be finalized in the spring based on enrollment and staffing needs.

“This plan is not a scare tactic,” Superintendent Monroe said. “It is the financial reality we face under current state funding constraints. We will continue to prioritize efficiency and make thoughtful, student- centered decisions. But we also need our community to understand what is truly at stake.”

Next Steps & Community Engagement

The District is hosting a Community Listening Session at 5:30 p.m. on Wednesday, Dec. 3 at the Monroe High School LMC.

The Board of Education will continue reviewing the proposed reduction plan on December 8. A final resolution to place an operational referendum question on the April 7, 2026 ballot is expected on January 12.

The district will provide additional updates, community engagement opportunities, and informational materials as discussions progress.