MONROE - The Monroe school board Monday discussed the possibility of an April referendum to allow the district to exceed state-mandated revenue caps for the next four to five years.
The board will further discuss a referendum and potential length of a referendum at its Jan. 10 meeting, and possibly vote to authorize a referendum at its Jan. 24 meeting.
Board members said they wanted more information at the Jan. 10 meeting so they can get a better idea of how much money is needed, and what areas would be cut or reduced if a referendum isn't passed.
If the board votes to go to referendum in April, the district will have two months to educate and explain the need for the referendum to the voters, said Larry Brown, Monroe superintendent.
"It's going to take a lot of work," he said.
Board member Bob Erb said residents need to see the district has tried to cut expenses where it could while keeping spending to a minimum.
Ron Olson, district business manager, said the district will need a referendum for operating expenses. He said conservative projections show a continued increase in salaries and benefits as well as utility costs for the next five years. Olson said about 80 percent of the district's budget is for salaries and benefits for teachers and staff.
The district is at the end of its four-year, non-recurring referendum in which voters allowed the district to exceed the revenue caps by $8.3 million. Olson said the district was able to make cuts in administration and other areas for the past four years, using about $4.3 million of the total amount authorized by the referendum.
"The board has tried to be fiscally responsible," he said.
Without a referendum, Olson projected the district would have deficits of about $1.6 million in the 2011-12 school year; $2.3 million in the 2012-13; $3 million in 2013-14 school year; and $3.6 million in the 2014-15.
By showing voters the district has looked at budget cuts, and identified areas that could be cut or reduced, it will help voters to see the district is serious about spending money wisely and saving money where it can, Olson said.
The district has begun to look at areas it could cut to help make up the deficit in the first year. Some of the cuts include a teacher at the virtual school; a core classroom teacher at the middle school; a technology education teacher at the high school; and a special education teacher. With adjustments, the district could potentially save about $532,000 in the 2011-12 school year. Retirements could add to the amount the district saves, he added.
Olson said the district should consider the cuts even if a referendum is passed.
To that end, he presented more possible cuts to the board in the event a referendum doesn't pass. Staff reductions could be among those further cuts.
"No reduction is going to be easy," Olson said. "It's not what we want to do but we have to take a hard look at things."
Board members Brian Keith and Les Bieneman asked Olson for more information about other areas that could be trimmed, including extra-curricular activities.
"No matter what we do we're going to make someone mad," Keith said.
The board will further discuss a referendum and potential length of a referendum at its Jan. 10 meeting, and possibly vote to authorize a referendum at its Jan. 24 meeting.
Board members said they wanted more information at the Jan. 10 meeting so they can get a better idea of how much money is needed, and what areas would be cut or reduced if a referendum isn't passed.
If the board votes to go to referendum in April, the district will have two months to educate and explain the need for the referendum to the voters, said Larry Brown, Monroe superintendent.
"It's going to take a lot of work," he said.
Board member Bob Erb said residents need to see the district has tried to cut expenses where it could while keeping spending to a minimum.
Ron Olson, district business manager, said the district will need a referendum for operating expenses. He said conservative projections show a continued increase in salaries and benefits as well as utility costs for the next five years. Olson said about 80 percent of the district's budget is for salaries and benefits for teachers and staff.
The district is at the end of its four-year, non-recurring referendum in which voters allowed the district to exceed the revenue caps by $8.3 million. Olson said the district was able to make cuts in administration and other areas for the past four years, using about $4.3 million of the total amount authorized by the referendum.
"The board has tried to be fiscally responsible," he said.
Without a referendum, Olson projected the district would have deficits of about $1.6 million in the 2011-12 school year; $2.3 million in the 2012-13; $3 million in 2013-14 school year; and $3.6 million in the 2014-15.
By showing voters the district has looked at budget cuts, and identified areas that could be cut or reduced, it will help voters to see the district is serious about spending money wisely and saving money where it can, Olson said.
The district has begun to look at areas it could cut to help make up the deficit in the first year. Some of the cuts include a teacher at the virtual school; a core classroom teacher at the middle school; a technology education teacher at the high school; and a special education teacher. With adjustments, the district could potentially save about $532,000 in the 2011-12 school year. Retirements could add to the amount the district saves, he added.
Olson said the district should consider the cuts even if a referendum is passed.
To that end, he presented more possible cuts to the board in the event a referendum doesn't pass. Staff reductions could be among those further cuts.
"No reduction is going to be easy," Olson said. "It's not what we want to do but we have to take a hard look at things."
Board members Brian Keith and Les Bieneman asked Olson for more information about other areas that could be trimmed, including extra-curricular activities.
"No matter what we do we're going to make someone mad," Keith said.