MONROE - The Monroe School Board may bank on its record of bringing in budgets less than projected as its considers ways to handle a $1.45 million deficit projected for 2012-13.
Monroe Business Manager Ron Olson recommended Monday that the district operate with a $1 million deficit next year in combination with some reductions. Olson said the district can continue to try to bring expenses in under budget to offset that deficit, and use part of the $7.45 million in fund balance to also help offset it.
Voters rejected a four-year, $8 million non-recurring referendum last April. The district cut $1.9 million from this year's budget. District leaders have developed a three-tiered, $1.43 million reduction list for 2012-13, which includes 39 individuals and 28.4 full-time equivalent positions.
"It's a big, ugly list to get to $1.45 million," Olson said. "I have run out of tricks in my bag to make money."
It's not unusual for school districts to start a year with a deficit: Monroe started this year with a projected $811,591 deficit. Olson said this year's budget is now expected to come in $1.01 million under budget.
Monroe School board member Les Bieneman was a proponent of using a portion of the almost $7.5 million fund balance and not making cuts, but instead working on a referendum plan.
"I don't see where we would be putting the district at risk for one year," Bieneman said. "Last year, we made all those cuts and it damaged the district. I don't think we should make any more cuts without the community saying "we will not fund you.' We have to draw a line in the sand and say "we just can't make do any more.'"
Olson said the district must maintain at least $6 million in fund balance to avoid major cash borrowing that comes with high interest payments.
Monroe School District Superintendent Larry Brown said using fund balance dollars is a risk.
"If we can make it work with as minimum amount of cuts as we can get by with, I will support it because of our history (of coming in under budget,)" Brown said.
The financial picture was compounded by Gov. Scott Walker's budget plan that cut funding for education by $800 million. The budget plan reduced school districts revenue limits by 5.5 percent, which prevents schools from using property taxes to make up the difference.
Board member Larry Eakins said the district will have to make a convincing argument to the public about a referendum down the road.
"At some point, we will have to ask the community if they want more cuts or if they want to pay more in taxes," he said.
The district hasn't determined how much it would cut if it elects to carry a $1 million deficit to start next year. Board member Brian Keith asked the administrators to rank the reduction list to help the board.
Olson said the district would look at different health insurance providers and transportation contracts. Health insurance rates alone are expected to increase 13 to 15 percent, Olson said, adding a realistic goal is to have an increase of no more than 5 percent. He also said the district could potentially save $75,000 compared to this year on a transportation bid if it's approved later this month.
Monroe Business Manager Ron Olson recommended Monday that the district operate with a $1 million deficit next year in combination with some reductions. Olson said the district can continue to try to bring expenses in under budget to offset that deficit, and use part of the $7.45 million in fund balance to also help offset it.
Voters rejected a four-year, $8 million non-recurring referendum last April. The district cut $1.9 million from this year's budget. District leaders have developed a three-tiered, $1.43 million reduction list for 2012-13, which includes 39 individuals and 28.4 full-time equivalent positions.
"It's a big, ugly list to get to $1.45 million," Olson said. "I have run out of tricks in my bag to make money."
It's not unusual for school districts to start a year with a deficit: Monroe started this year with a projected $811,591 deficit. Olson said this year's budget is now expected to come in $1.01 million under budget.
Monroe School board member Les Bieneman was a proponent of using a portion of the almost $7.5 million fund balance and not making cuts, but instead working on a referendum plan.
"I don't see where we would be putting the district at risk for one year," Bieneman said. "Last year, we made all those cuts and it damaged the district. I don't think we should make any more cuts without the community saying "we will not fund you.' We have to draw a line in the sand and say "we just can't make do any more.'"
Olson said the district must maintain at least $6 million in fund balance to avoid major cash borrowing that comes with high interest payments.
Monroe School District Superintendent Larry Brown said using fund balance dollars is a risk.
"If we can make it work with as minimum amount of cuts as we can get by with, I will support it because of our history (of coming in under budget,)" Brown said.
The financial picture was compounded by Gov. Scott Walker's budget plan that cut funding for education by $800 million. The budget plan reduced school districts revenue limits by 5.5 percent, which prevents schools from using property taxes to make up the difference.
Board member Larry Eakins said the district will have to make a convincing argument to the public about a referendum down the road.
"At some point, we will have to ask the community if they want more cuts or if they want to pay more in taxes," he said.
The district hasn't determined how much it would cut if it elects to carry a $1 million deficit to start next year. Board member Brian Keith asked the administrators to rank the reduction list to help the board.
Olson said the district would look at different health insurance providers and transportation contracts. Health insurance rates alone are expected to increase 13 to 15 percent, Olson said, adding a realistic goal is to have an increase of no more than 5 percent. He also said the district could potentially save $75,000 compared to this year on a transportation bid if it's approved later this month.