School District Suggests Deep Cuts to Address $1.9 Million Budget Deficit

Facing a $1.9 million budget deficit going forward next year, Supt. Blane McCann said Monday the district plans to cut $1.6 million from its budget, with little change to curriculum.

Combining savings under Gov. Scott Walker’s budget repair bill, staff turnover and the savings from a change in the district’s healthcare plan, the district plans to balance its budget. Passage of the would actually put the district in the positive, as it shifts retiree health care liability out of the operating fund, if it borrows the $11.6 million it says it now would borrow.

“This is the eighth year I have presented the budget to the School Board, and each year we have cut significant dollars,” McCann said. “At a time when I thought it would be an easy budget year, it turned into a much more difficult task."

The district saw its because of a 10 percent cut in state aid and freeze on the tax levy as part of the governor's 2011-2013 budget proposal. The district will lose $666 per student.

The revenue limit has only increased about 1 percent over the last couple years, said Mark Boehlke, district business manager, when the district really needs a 2 to 4 percent increase to mirror inflation and the cost of health care benefits.

McCann proposed a long list of cuts in an effort to balance the budget but said there were still several cuts that didn't make the list including increased class sizes, cutting a librarian position, moving music lessons to after school and moving elementary Spanish to outside the regular school day.

As long-time, veteran teachers retire and new educators move into the district, drawing lesser salaries, the district expects to save $174,348.

"Each year we have about five retirements ... most of our retirees are at the top of the pay schedule," McCann said.

Additionally, the district expects to save $621,933 from a 5.8 percent contribution to pensions from district employees and another $115,861 by capping salary increases at 1 percent — both mandated by the governor’s recently passed and controversial budget repair bill.

A 12.6 percent increase in health care benefit contributions from district employees is not required, because the district doesn’t have the state health care plan. But, at a earlier School Board meeting, a spokesperson for the Shorewood Education Association said district teachers are prepared to pay the additional amount to their premiums, which would save the district $140,000.

The district will eliminate elementary science aides and health care for instructional aides, saving $200,000. In addition, what McCann described as eliminating directorships for band, choir and orchestra would have some teachers teach across the district, effectively eliminating some staff positions.

The district will also take advantage of health care plan concessions made a .

Upgrades made to HVAC systems and other energy saving measures will save $50,000 and the district said it will reduce attorney fees at a savings of $15,000. Federal jobs bill money is expected to add $95,000 to the district's revenue; however, the district won't see that funding next year.

Athletic fees at the high school would increase from $100 to $125 across all sports. Club fees would change from $50 to $60.

School Board President Paul Zovic said the district could really address the budget by looking for a new health insurance provider. The district expects to save $185,000 by bidding for a new provider, but Zovic said the district might be able to save even more.

A 10 percent cut in state aid isn’t the most severe reduction the district has seen in the last five years, including a 15 percent reduction in 2007 and a 17 percent decrease in 2008, but there wasn’t a freeze on the tax levy.

Even with the nearly $2 million deficit, the district will still add $347,000 to its budget. The additional funding will help grow the district's summer school program, hire a director of administrative services, hire a literacy coach and add a new art class.

The district says long-term solutions to budget woes continue to be increasing resident enrollment, fundraising and setting up an endowment.

Meanwhile, including a $162,500 savings as a result of employees' increased contributions to their Wisconsin Retirement Saving funds and an anticipated 2 percent increase they won't be able to levy in property taxes.

If the governor's biennial budget were approved, it would take effect for Shorewood schools on July 1, while the village wouldn't see effects until the beginning of 2012.