Our District is currently operating under the 2024-2025 budget, which was approved by the School board this past June. This budget includes a 10% reduction in supply funding, a suspension of conferences and travel for staff not funded by grants, and a pause on additional IT upgrades for students and classrooms. If the upcoming referendum does not pass, and we continue operating under this budget, the District’s fund balance is projected to be fully depleted by the end of next school year.
Like us, Districts across the state are increasingly turning to operational referenda as a tool to secure funding necessary to maintain day-to-day operations. Restrictive revenue limits and inadequate state funding on top of rising operational costs have made it challenging to balance our budget. We are bringing this proposal to our community to maintain our high- quality educational programming and operations.
Our District’s fund balance is important because it acts as a savings account or emergency fund, helping the district handle unexpected costs, maintain stability, avoid debt, and support long-term planning. If our fund balance were to be depleted, it would put our district in a financially challenging position to handle immediate and future needs.
If the proposed referendum is approved, the annual tax increase on $100,000 of equalized property value will be $203 in year 1, $14 in year 2, $33 in year 3, and $17 in year 4. It is important to note that the actual annual tax increase on assessed property value will be dependent on the municipality. The increase for year 1 is calculated in comparison to the referendum not passing.
The yearly amounts are validated by inflation, expected cost increases, and the effort to rebuild our fund balance. We are asking for more each year as our expenses are expected to increase.
If approved, the funds will support a variety of items such as supplies, technology upgrades, curriculum updates, staff compensation, facility repairs and maintenance, rising insurance premiums, and rebuilding the District’s fund balance. In essence, the approval of this referendum will allow our district to maintain its current level of operations without interruption, ensuring our students continue to receive high-quality education in a well-maintained and supportive environment.
If the proposed referendum is not approved, the financial outlook for our District will become increasingly challenging. Specifically, the District’s fund balance, which serves as our savings account and financial safety net, will be fully depleted by the end of the 2025-2026 school year. This looming depletion would force us to bring forth another referendum as early as next Spring to avoid severe operational disruptions. As a District we are already operating with minimal teaching staff and larger class sizes, leaving no room for staffing cuts. A failed referendum may also result in inability to maintain educational programs or loss of qualified staff.
The 2018 Referendum was for capital improvements – a new CTE facility, replacing the Elementary School Roof, and a new boiler for the High School. At the time, the District was comfortably maintaining daily operations and educational programs. However, the economy has changed significantly since the 2018 Capital Referendum putting us in a different, more demanding financial position.