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School aid down, tax rate is up
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MONROE - Homeowners can expect a higher school tax bill after Monroe Business Manager Ron Olson received final state aid numbers Monday that include $260,00 less in state aid than what the state Department of Public Instruction projected in July.

The updated numbers mean the district will end up receiving $704,526 less in total state aid for 2012-13 compared to last year.

Olson, who updated school board members during an annual meeting Monday night, said the tax levy will increase 3.93 percent to $11.52 million compared to last year. District leaders first projected a $11.26 million levy.

"Some people will see that and be alarmed," Olson said, adding "we have lost $3 million in state funding the last four years."

The district will continue to operate this school year with a $1 million deficit in a $34.63 million total budget. Board members will vote on the final budget and adjusted levy Oct. 22.

Olson said the tax rate, after the budget is adjusted, will increase 4.77 percent to $11.65 per $1,000 of assessed valuation. For 2011-12, the tax rate was $11.12.

That means the owner of a $100,00 home will pay $1,165 in taxes for school purposes next year, compared to $1,112 this year.

District leaders project a 2.72-percent decrease in expenditures and 3.75-percent decline in revenues compared to last year. Equalized valuation in the district has decreased 0.77 percent, Olson said.

Monroe School District Superintendent Cory Hirsbrunner said the focus the last several years has been for school districts to do more with less.

"It's our obligation to provide a good education for our students," Hirsbrunner said. "We have to be strategic in how we use the dollars our community entrusts in us."

Olson also presented a comparative cost per student and equalized valuation aid comparisons to other area schools and Badger South and Badger North Schools. Monroe is the only district in the state which uses a portion of its tax levy to support the Monroe Public Library.

Olson said $220,000 that would go to the district is being funneled to Milwaukee school programs, such as voucher schools. He said the public library and virtual school are two anomalies in the Monroe district that other districts don't have to deal with. Olson said when the library and virtual school are factored out of the equation, the district receives $11,992 per student. The state average for the cost per student is $13,020.

District officials point to steps they've taken to cut costs: Teachers are in the final year of a two-year salary freeze. The district also cut $233,500 from its budget in March, which included eliminating 2.6 teaching positions and three support staff positions.

The district has about $8 million in its fund balance it can dip into to offset part of the deficit, but Olson has said that is not a long-term fix. Rather, he said, the district will continue working to bring in the budget less than projected.

"If we use $1 million from the fund balance, we are looking at two years before we have to go to referendum again," he said. "If we can keep bringing in our budget under, then we can buy some time."

In Monroe, Olson said the district's budget is 60 percent driven by state sources and 30 percent through taxes. About 75 to 80 percent of the general fund budget is slated for salaries and benefits. There is 11 percent for services like utilities, maintenance and transportation and six percent for capital and non capital projects.

The revenue generated through open enrollment, which is driven by the virtual school, has decreased $250,000 to $1.6 million. Olson said the virtual school is about a break-even program.

"It's not a big money maker," Olson said of the virtual school. "We are not relying on that for the budget."

The state expanded the open enrollment period last year. District leaders are hoping that will help them lure more students.

No taxpayers spoke at the annual meeting.