Tuesday, August 18, 2009

Waupun school taxes are going up

SOURCE: Fond du Lac Reporter

WAUPUN — Taxpayers can expect a hike in school taxes this year, thanks to a hefty cut in state aid money.

The Waupun Area Board of Education approved the preliminary budget for the 2009-10 school year during the regular meeting Monday night. The $28.5 million budget calls for an estimated tax levy of $9 million, an 8.7 percent increase over last year.

Business Director Bill Zeininger said the driving force behind the tax increase is a decrease of $751,158 in state aid funds, even though expenditures are down $203,000 from last year.

"We expected it to be less, but this is huge," Zeininger said of the cut. "We've done all the things since the referendum failed to address our local situation, with cuts and restructuring saving over $1 million. I hope people understand that it's because the state isn't giving us the money."

Based on a projected 5.2 percent increase in district equalized valuation, the tax rate for the school district is estimated at $8.87 per $1,000 of assessed valuation for property owners, up 29 cents from last year.

Board member Ron Paul said people already pressed by the slumping economy probably won't understand the rationale behind the increase when they open their tax bills. He asked Zeininger to dig deeper to find more cuts.

"We'll still have an opportunity to look for more savings between now and when you formally approve the budget on Oct. 19," Zeininger said. "Hopefully, with all the student numbers in by then, we'll be able to recoup some savings from the special education contract or open enrollment."

In preliminary budget figures, Zeininger estimated a loss of more than $1 million in funding from students opting to leave the district.

Applications for open enrollment out of the Waupun district spiked after the board announced its decision to close both Alto and Fox Lake schools in addition to Jefferson Elementary School earlier this year following the failed referendum.

District Administrator Randy Refsland said all 424 school districts across the state are wrestling with their annual budgets due to the lagging economy and reduced state aid funds.

"Some districts have gone forward with their increases while others have made the decision that they're going to spend down their fund balances until there's nothing left just to keep the tax rate down," Refsland said. "I don't advocate that. What we know based on state projections, the budget deficit will even be worse next year. And two years from now, there will be this billion dollar hole where they used stimulus money to patch this budget. As a school district, you're damned if you do and you're damned if you don't. It's just reality, and it's an ugly reality."

The public will have the opportunity to weigh in on the budget during the annual meeting set for 8 p.m. Monday, Sept. 28, in the large group instructional room at Waupun Area Junior/Senior High School.