A Message on the 2024-2025 Budget Reductions
Changes that impact positions and employment of staff are some of the most difficult to make and receive. We understand many of you have questions and more specific information will be shared in the coming weeks.
Since 2019, the District has been transitioning Abraham Lincoln to a one-section school. Last year, staffing and enrollment supported 2 grades being reduced instead of one. This year, it was decided to complete that process one year ahead of schedule. This decision was made in an effort to keep the highest number of employees on staff for the 2024-25 school year. A comparison of staff-to-student ratios across all buildings, educational programming needs, anticipated retirements, open staff positions, and roles that include student contact were considered. Abe will continue to have guidance, PE, and a school nurse through shared District staff and have library coverage from within the building from a split position. Over the next several months we will be working out the details at the building and administrative levels to ensure we have staff and support in the best places to serve our students.
We understand the frustrations and specifically acknowledge those who are experiencing the greatest impact with the reduction plan. The administrative team is committed to supporting the individuals and teams affected by the changes and retaining our educators. We will keep staff updated as we move forward with the budget reduction plan for next school year.
Board President Rich Deprez 3/11/24
At our Board of Education Meeting on March 11th the Board considered action on a recommendation from Administration to reduce expenses by approximately $937,000 for the 2024-2025 school year. For context, in October while approving the budget for 2023-2024 school year we discussed the predicted budget deficit to be 1.37 million dollars. In January the Board began considering possible budget reductions for the following 2024-2025 school year.
This is partly due to Public Education across the state, Monroe included, continuing to be underfunded. The state withheld any funding increases in the 2021-2023 biennial budget. That action forced districts across the state to use one-time Covid related ESSER funding to balance their operational budgets, instead of the intended use to help assist with additional expenses associated to the pandemic. During that time, we experienced some of the highest inflationary pressures in recent history. The increases we received in operational funding this year, and next, are about half of what was needed to cover what was lost in the previous budget cycle, let alone this cycle. Inflationary pressures on payroll, benefits, and services have outstripped our ability to reduce expenses through attrition while our enrollment has remained relatively flat. In the past, we have been able to make incremental budget reductions through attrition alone. Those headwinds coupled with the expiration of the 1.5-million-dollar annual operating referendum that has been in place since 2016 further compound the projected deficit for the 2024-2025 school year to around 2.8 million dollars. That is an untenable budget deficit that we cannot rely on our fund balance alone to make up.
Through several conversations with the Administration, the Board came to the difficult realization that budget reductions would be necessary to ensure that the District continues to operate with fiscal responsibility. We have a healthy fund balance that is projected to be around 7.4 million dollars at the end of this school year. That may sound like a large amount, but the timing for funding from local, state, and federal sources requires the District to keep around 4.5 to 5 million dollars of fund balance on hand to meet District obligations. Otherwise, we have to short term borrow, with interest applied to the funds borrowed, while we wait for the various funding sources to come in. Our fund balance is finite and will not last long if we continue to operate with a 2.8-million-dollar budget deficit. We will need to rely on that balance in the short term being careful not to draw it down to a level that requires cash flow borrowing.
The Board directed Fig and his team to identify between $900,000 and $1,000,000 in reductions for the 2024-2025 school year that have the least impact on students, staff, services, and programming. It should be acknowledged that none of these decisions are preferable and have impact in some way regardless of characterizing them as “least” impactful. We realize that the proposed reductions and changes to duties in some cases are very personal to those affected by them and I don’t want that statement to in any way minimize that impact. It is a reflection of decisions made in the context of the District as a whole and we would not have investigated taking these steps if they weren’t absolutely necessary.
The Administrative team was able to identify reductions through various means that Mr. Figueroa presented during the March 11th meeting. Administration’s recommendations will unfortunately result in the reduction of some positions that were described in Mr. Figueroa’s statement. At this time, we will rely on fund balance and our general experience of ending the year slightly better than budgeted to bridge the gap for the projected deficit for the 2024-2025 school year. Any deeper reductions would begin to affect our District in ways the Board was not comfortable considering. The action taken by the Board of Education on March 11th is effective for the 2024-2025 school year.
We value and deeply appreciate every member of the School District of Monroe. While we acknowledge that these decisions are difficult, they are necessary. We are communicating these budget reductions many months ahead of their effective date to ensure that our staff and community is aware and able to process through them. As the 2024-2025 budget process evolves throughout the year the Board is committed to communicating early, and often, to ensure our community is informed as the District manages our finances through a difficult chapter for public school funding all across the State of Wisconsin.
District Administrator Rodney Figueroa 3/11/24
At our Annual Meeting in October 2023, we shared a larger than normal budget deficit which is a direct long-term effect of underfunding public schools. This is accelerated by no increase in state funding in the previous biennium budget, and increases in the current biennium budget which did not address the inflation experienced the last several years, or correct the lost state revenue for public schools in the previous biennium.
The current and projected budget deficit and reductions are related to the day to day cost of operations for the District.
The capital improvement referendum for updates to Abe and construction of the new high school passed in November of 2022 may not be used toward the cost of operations. Capital improvement referendum funds and interest can only be used for the building project.
Our budget challenges are not unique as many districts across the state are forced to make difficult decisions regarding staffing and programming to get their budgets to work. This fact does not make our personal experience any easier, but it does show the realities of public-school funding in the State of Wisconsin. Simply said, we are not properly funded by the state.
As superintendent, it is my responsibility to work with my administrators and present a plan to be fiscally responsible while providing the best programming possible for our students. I provided approximately $900,000 in budget reductions for next school year after 5 months of repeatedly going through all areas of the budget. The recommendation keeps intact the integrity of our programs, least impacts our students, and eliminates the least amount of positions.
The process has been difficult and fully participated in by the administrative team under the parameters which needed to be set by the Board of Education. We acknowledge there is an emotional side to these types of decisions. We will continue to be understanding and respectful as those affected work toward some level of acceptance.
The majority of the budget reductions will be realized through attrition, reassignment of staff, and line item/ 3rd party services reductions. There are employees who are in positions this year which will be eliminated next year. Some will be reassigned in similar available roles; some positions will just not be filled.
The leadership team has communicated with the impacted employees prior to the Board meeting out of respect and as a professional courtesy so they are not first hearing of the changes at tonight's BOE meeting. In these meetings, employees were made aware of other currently open positions they may have interest in.
The recommended budget dollar reductions include:
- $248,000 Supplies, equipment, and 3rd party services
- $555,000 Attrition and staff reassignment
- This includes completing the transition of Abe to a one section elementary school
- $134,000 Reduced/eliminated staff
- 3 part time health assistant positions
- 1 part time crossing guard
- 2 part time LMC Aides
This has been a difficult and challenging process for everyone involved and amplified by the fact some of the reductions are people's jobs. We will work with our staff to address their concerns and work through their grief to find the best solutions in each area. We value all of our employees and feel the weight of the decisions which need to be made.
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