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February 11, 2000
Dist. 88 considersexcess referendumBy TONY ZIEBOL Journal Staff Writer NEW ULM -- District 88 faces the possibility of asking the voters for a new excess levy referendum, which was discussed at the regularly scheduled school board meeting Thursday. If, when or how much has not yet been decided, but members of the school board said looking at the financial status of the school is a high priority. Currently, revenues are down and expenditures are up in District 88, which is causing school officials to seriously consider a new referendum. As of June 30, 1999, the general fund balance for the district was $2,470,556, but the estimated balance for June 30, 2000 is $1,567,968. "We hope it will be higher than that, but we can't guarantee it," Superintendent Harold Remme said. One of the major problems is that student enrollments were lower than the projections. Also, expenditures are up due to higher than anticipated employee settlements, significant additional expenses for special student services, which the district is required by state law to pay, and a carryover of health and safety project costs. The district has calculated that enrollment will keep declining at a rate of 100 (per pupil unit) per year, which will translate into a revenue reduction of nearly $600,000 per year. Because state aid increases are below needed levels, the district must come up with the money it needs itself. According to Remme, the district has three choices to fix the monetary problems. The first plan would be to reduce expenditures, but this is not preferable, Remme said, because it would mean making future program cuts and increasing class sizes. A second plan would be to increase revenues, but since state money has not satisfactory helped districts experiencing enrollment decline, the only way to do this would be to create a local excess levy referendum. The last plan would include a combination of both, but making reductions in programs or staff would would still not match revenue losses. Under this plan, the district would need to make staff and expenditure reductions with increases in revenue to accomplish the vision and goals as a district, Remme said. If the district continues to spend at the same rate, the fund balance will be gone, programs and staff will have to be cut. This has happened to the district in the past, and Remme said he doesn't want to see that happen again. Therefore, the district needs to be concerned with not only the present, but the next five years. "We need to look at both short and long-term (finances)," Remme said. Parent survey results show that the parents in the district want additional programs and services. That, couple with the fact that the state is recommending that districts reduce the teacher/student ratios, means District 88 should be adding staff members instead of reducing them, Remme said. The district has goals to provide a balance program of curriculars and extra-curriculars, maintain small teacher/student ratios and maintain an adequate fund balance for cash flow and emergencies "so we can protect ourselves," Remme said. District 88 currently has two referendums in place -- one from 1992, which expires in 2008, that this year provides $106 per pupil unit and another one from 1997, which expires in 2002, and gives gives the district $146 per pupil unit -- for a total of $252 per pupil unit. These amounts are still well below the state average referendum size of $460 per pupil unit in 1999-2000 which will grow to $505 for the 2001-2002 school year (the state cap on excess levies is $968 per pupil unit). If District 88 is to put forth an excess levy to its voters for approval, it must be authorized by the Board of Education and have a maximum length of 10 years. About 80 percent of school districts in the state have an excess levy in place. The school board will continue to discuss the possibility of a referendum in upcoming months, but hinted the district may have no choice. "It looks like we're pointed in the direction of the taxpayers," said Mark Wiger, District 88 Chairman.
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