CONLEY COMMENTARY (WSAU) – There are two school districts in Wisconsin that have sprung unpleasant surprises on their residents.
The Monona Grove School District, in Dane County, has been operating under a deficit for the last three years. They’ll borrow $7-million to square their books, to be paid back at $1-million per year through 2031. The Wauwatosa Schools have a $3-million structural deficit. It will grow each year if it isn’t addressed now.
The problem in both of those districts appears to be poor accounting procedures and poor controls on spending.
This should bring the Wausau School District’s budget problems into focus. Both of the other districts are property-rich compared to Wausau. The value of the land in those districts is greater. In Wausau, a budget shortfall is more likely to fall on taxpayers.
There are two reasons for Wausau’s school shortfall. First, school districts got lots of money from the state and from Washington during the COVID years. That money allowed districts to put off difficult financial decisions. But that was one-time cash. That money is gone now. And second, enrollment is down. Part of this is demographics; there are fewer school age kids in the district. But the other part is self-inflicted. Wausau was one of the last school district to open its building for in-person instruction during the COVID years. Many students open-renrolled in nearby districts. Families who sent their kids to D.C. Everest, Mosinee or Merrill are unlikely to ask their kids to change schools again. So the state aid that’s tied to those students is unlikely to come back to Wausau.
In Wausau the school board has already decided not to pursue an operating referendum in November. If they try in the spring, they’ll be voted down. Property owners are already facing a revaluation-fueled tax increase at the end of this year. They won’t voluntarily raise their taxes again.
What to do? There will be school closings and staff layoffs. That should be obvious to everyone. Fewer kids means a smaller district. The challenge will be this: no one wants their favorite teacher or their neighborhood school to be cut. These cuts will be difficult and unpopular, but there are few options left when voters say ‘no’ to higher taxes. What we need is a right-sized school district that lives within its means. The school board should begin preparing for that reality now.
Chris Conley
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