ELLSWORTH Area News

‘Advocacy is key’ for next state budget

ELLSWORTH – Ellsworth Community School District residents can expect a reduction on the school portion of their property taxes this coming year. Although the pro- posed budget will not be finalized until state aid numbers come in Friday, Oct. 15 from the Department of Public Instruction, Superin – tendent Barry Cain is confident the proposed budget is accurate. Three electors at the annual meeting voted to accept the 2022-23 total tax levy of $9,381,646, which the school board will certify in a special meeting at 5 p.m. Oct.

25. The money can be broken down like this: $6,685,241 for general school purpos – es, $2,210,582 for referendum debt service, $336,023 for non-referendum debt, and $150,000 for community service.

Factors that auect the final budget num – bers include general aid dollar amounts from the state, district property values, and student enrollment population from the membership count which was conducted the third Friday in September. The mill rate, which is a number calcu lated from the total real estate property val- ue within a district's borders and the tax the district will levy to operate the schools, is projected to decrease from 8.06 to 7.24, a decrease of 10.17%. This means per $1,000 of property value, a property owner will pay $7.24 in school taxes. “This is the lowest mill rate on record with the Department of Public Instruction (for Ellsworth district residents) from 1984 forward,” said Cain. “This is a trend state- wide due to flat levies and property valuation growth across the state.”

While a lower tax bill is indeed good news for residents, it could spell trouble ahead for school districts in the next biennium stage budget. Essentially, the legislature froze funding for K-12 schools and told them to use federal ESSER (COVID relief) funds to fill in their budgets. "Property taxes were lowered yes, but it didn’t give us money to operate from,” Cain said. “It’s a tough concept for the general public to understand. Advocacy is essential." The district is projecting to see $21,368,928 in revenue, which is down from $21,885,435 last year. That amount is com – prised of $6,685,241 in property tax levy, $511,869 in open enrollment reimbursement, $227,500 in categorical state aid (transpor- tation and library funding), $11,170,454 in general state aid (final number will come in Friday) and $1,516,844 in high-cost trans portation aid and per pupil funding (which is $742 per student.)

Lower revenue can be explained by lack of an internet connectivity grant this year ($400,000), ESSER funds ($400,000 less than last year), and $150,000 in COVID relief from Gov. Evers, as opposed to $220,000 last year.

The 2022-23 proposed expenditure to- tal $21,937,535 as opposed to last year's $21,034,722. The increase can be attributed to several factors, such as a 7% increase in insurance costs, a 4% increase in wages, in – flation and having to transfer $500,000 into Fund 27 (special education fund). As for Fund 46, which is basically like the district’s savings account for capital improvement projects, last year's balance was $1,347,541. This year, due to installing chillers at the middle and high schools and other projects, the amount is now $627,150.

Later in his superintendent’s report, Cain said the financial cliu districts are facing after ESSER funds are done (which they are after this year) is not just due to ESSER spenddown, although that is one factor. Districts were forced to use ESSER funds to perform everyday operations. Those funds expire in September 2024, midway through the state's next budget. Another factor is declining enrollment.

Two-thirds of Wisconsin school districts have declining enrollment, Cain said, because the national baby bust trend is real. People are having less children. Less children doesn’t bode well for schools, which are funded per pupil.

Schools, like households, are facing chal- lenges due to inflation. Wages are increas ing. Ordinary expenses such as food, fuel and utilities are increasing. Construction and maintenance costs are increasing, as is the cost of borrowing funds (interest rates). Yet state school funding remains stagnant.

At the conclusion of the meeting, the elec- tors approved school board salaries for 202223: President, $2,700; vice president, $2,200; clerk and treasurer, $2,400; and member, $2,100.

The next annual meeting will be held Monday, Oct. 9, 2023.