MONROE - After looming in the distance for more than a year, the possibility of a referendum solidified at the Monroe school board meeting Monday. The remaining questions are: When? How? And how much?
Business Manager Ron Olson laid out two budget projections for the next few years - one with "reasonable numbers" for increasing costs the district could expect to see and the other with baseline estimates.
Despite an unexpected drop in student enrollment this year, Olson projected membership to hold steady over the next two years and increase slightly by the 2018-19 school year. But the drop still means a declining three-year membership average, which lowers revenue in the long run.
Between the two potential budgets, the main difference is how much Olson projects for salaries and related costs. On the "reasonable" end, he marks a 2-percent increase to salaries, while they only increase by .5 percent in the baseline budget.
Salaries in the district have been flat in recent years, Olson said, partially because some positions have been left open after retirements or resignations.
"Part of the objective of having a referendum is to not have to do that and to actually be able to fill those positions," Olson said. He also noted the administration team's goal of addressing poverty and literacy, which would mean adding two "literacy teachers."
Unfilled positions in the district have increased class sizes and eliminated some offerings, such as structured study hall.
With the baseline budget, Olson projects the deficit to grow from about $850,000 this year to about $1.86 million by 2018-19. In the budget with higher estimates, he projects it to grow to more than $3 million by 2018-19.
Based on the deficit, the baseline referendum the district would need to maintain the same programs and to add two literacy teachers is about $1.8 million each year for three years.
"That doesn't deal with a lot of the other issues of our district, but I think it gives you all a starting point," Olson told the board. The other issues include the worn-out track at Monroe High School, safety issues and maintenance projects.
"One point six or 1.8 is probably going to be our floor," said Brian Keith, the board's treasurer. "If we're truly going to do this right, we'll probably need to ask for more than that."
The higher estimate is about $2.3 million for three years.
Scott Schmidt, the board's vice president, suggested the district will have to offer higher salaries to stay competitive as an employer, which would increase the amount needed in a referendum.
Board members discussed the possibility of putting out another survey to get more concrete feedback on what community members would be willing to vote for in a referendum, but several indicated that could create a timing issue.
Olson outlined possible timelines for the referendum: The district could aim to get one on the ballot by the spring election, which would allow time to make budget cuts for the following year if the referendum fails. Or it could wait until the fall election in 2016, which wouldn't leave time for budget cuts if the referendum fails, making the district operate another year on a deficit and further deplete the fund balance.
Bob Erb, the board president, said no matter how the referendum goes, board members have to figure out what to cut to protect the fund balance.
The board also has to consider what kind of referendum to hold - recurring or non-recurring. A non-recurring referendum would give the district permission to levy a specific amount over a specific time period, whereas a recurring referendum would allow the district to levy the amount indefinitely without asking voters for permission again.
Olson said the board has to decide whether to ask for the referendum in one question or multiple questions that ask for different amounts of money for specific uses, such as safety projects or maintenance.
The board is expected to discuss these aspects of the referendum, along with the timeline, over the next few meetings. Members also suggested holding a community information session on the potential referendum, noting other area districts are doing the same.
"What we're trying to do is give the public an option here - to go to the polls and say "no, trim the budget,' or "yeah, keep doing what you're doing,'" Erb said.
The referendum discussion came at the same meeting the board authorized a line of credit for this school year of up to $2 million with Wisconsin Bank and Trust. The move will allow the district to borrow money for short time periods in order to pay bills until state funding comes in December and June. Olson said the short-term borrowing won't incur much interest.
Board member Michael Boehme was absent.
Business Manager Ron Olson laid out two budget projections for the next few years - one with "reasonable numbers" for increasing costs the district could expect to see and the other with baseline estimates.
Despite an unexpected drop in student enrollment this year, Olson projected membership to hold steady over the next two years and increase slightly by the 2018-19 school year. But the drop still means a declining three-year membership average, which lowers revenue in the long run.
Between the two potential budgets, the main difference is how much Olson projects for salaries and related costs. On the "reasonable" end, he marks a 2-percent increase to salaries, while they only increase by .5 percent in the baseline budget.
Salaries in the district have been flat in recent years, Olson said, partially because some positions have been left open after retirements or resignations.
"Part of the objective of having a referendum is to not have to do that and to actually be able to fill those positions," Olson said. He also noted the administration team's goal of addressing poverty and literacy, which would mean adding two "literacy teachers."
Unfilled positions in the district have increased class sizes and eliminated some offerings, such as structured study hall.
With the baseline budget, Olson projects the deficit to grow from about $850,000 this year to about $1.86 million by 2018-19. In the budget with higher estimates, he projects it to grow to more than $3 million by 2018-19.
Based on the deficit, the baseline referendum the district would need to maintain the same programs and to add two literacy teachers is about $1.8 million each year for three years.
"That doesn't deal with a lot of the other issues of our district, but I think it gives you all a starting point," Olson told the board. The other issues include the worn-out track at Monroe High School, safety issues and maintenance projects.
"One point six or 1.8 is probably going to be our floor," said Brian Keith, the board's treasurer. "If we're truly going to do this right, we'll probably need to ask for more than that."
The higher estimate is about $2.3 million for three years.
Scott Schmidt, the board's vice president, suggested the district will have to offer higher salaries to stay competitive as an employer, which would increase the amount needed in a referendum.
Board members discussed the possibility of putting out another survey to get more concrete feedback on what community members would be willing to vote for in a referendum, but several indicated that could create a timing issue.
Olson outlined possible timelines for the referendum: The district could aim to get one on the ballot by the spring election, which would allow time to make budget cuts for the following year if the referendum fails. Or it could wait until the fall election in 2016, which wouldn't leave time for budget cuts if the referendum fails, making the district operate another year on a deficit and further deplete the fund balance.
Bob Erb, the board president, said no matter how the referendum goes, board members have to figure out what to cut to protect the fund balance.
The board also has to consider what kind of referendum to hold - recurring or non-recurring. A non-recurring referendum would give the district permission to levy a specific amount over a specific time period, whereas a recurring referendum would allow the district to levy the amount indefinitely without asking voters for permission again.
Olson said the board has to decide whether to ask for the referendum in one question or multiple questions that ask for different amounts of money for specific uses, such as safety projects or maintenance.
The board is expected to discuss these aspects of the referendum, along with the timeline, over the next few meetings. Members also suggested holding a community information session on the potential referendum, noting other area districts are doing the same.
"What we're trying to do is give the public an option here - to go to the polls and say "no, trim the budget,' or "yeah, keep doing what you're doing,'" Erb said.
The referendum discussion came at the same meeting the board authorized a line of credit for this school year of up to $2 million with Wisconsin Bank and Trust. The move will allow the district to borrow money for short time periods in order to pay bills until state funding comes in December and June. Olson said the short-term borrowing won't incur much interest.
Board member Michael Boehme was absent.