Board Falls Nearly 20% Short of $1.0 Million Budget Cut

Superintendent Gerlach indicated that staffing reductions need to be approved at next week’s Board meeting as any layoff notices need to be sent to staff on April 15.  He is very hesitant to make a 5% cut to building budgets.  He stressed that he has faith in his administrators to make the right decisions.  If we can fall within one percent of our budget, he would be comfortable with that.

The Board had extensive discussion on the remaining proposed items, including building/department budgets, IMC paraprofessionals, extending the walk zone and increase in minutes for elementary related arts.

MOTION: Susan Manning moved to remove “elementary related arts-reduce instructional minutes per week” from the list of proposed reductions for this year. Lionel Norton seconded and the motion carried.

MOTION: Peter Sobol moved to remove the reduction of building budgets by 5% from the list of proposed reductions for this year.  Jason McCutchin seconded.

ROLL CALL VOTE:  Motion carried 6-1 with Susan Manning voting Nay.

The Board asked to receive copies of building budgets and department budgets, including the department budgets with a possible reduction of some amount up to 5%.

MOTION: Jason McCutchin moved to reduce IMC Paraprofessionals by 2 FTE for next year at an approximate cost savings of $66,000.  Peter Sobol seconded and the motion carried.

The Board conducted a variety of other board business, which can be found in the minutes on the district website.

Herald-Independent Article:

http://heraldindependentonline.com/main.asp?SectionID=2&SubSectionID=21&ArticleID=1655&TM=42679.37

Maywood & Winnequah Consolidation Delayed

Susan Fox announced that the district’s food service staff have taken a pay freeze for two years.

Discussion and Possible Approval of Consolidation of Maywood & Winnequah Schools. This was listed as a budget reduction item estimated to save $260,000 per year.

MOTION: Jessica Ace moved to delay the decision of the Consolidation of Maywood and Winnequah Schools until the 2011-2012 budget cycle. Susan Manning seconded.

The Board had extensive discussion regarding this item. They talked about the need for a three or five year plan to address both facilities and budget. In addition, the question was asked regarding what would be the tax impact on residents for a referendum. Superintendent Gerlach explained that a number of factors need to be considered but a general figure would be $50 per $100,000 of home value for the first year. Also, in order to address the financial needs, it would be up to $250 per $100,000 for the 5th year.

ROLL CALL VOTE: Motion carries on a vote of 4-3. Norton, Ace, Manning & Fox voted Aye. Sobol, McCutchin & List voted Nay.

Discussion and Possible Approval Budget Reduction Proposals. Superintendent Gerlach went through the list of final budget reduction recommendations without the building consolidation. The total amount of the recommendations is the reduction of $1,028.500. Superintendent Gerlach indicated that if there are a multitude of questions, the Board will schedule an additional meeting in early April, as decisions regarding staffing must be made prior to April 14.

MOTION: Peter Sobol moved that the Board accept the list of Final Budget Reduction Recommendations Without Building Consolidation, dated 3/23/10 as presented. Jason McCutchin seconded.

After discussion and several other motions, the Board removed the following items from the list to be discussed at a later meeting:

· Building Budgets/Department Budgets

· IMC Paraprofessionals

· Elementary Related Arts: Reduce Instructional minutes per week

· Extend the walk area to 2 miles

Susan Manning made two motions to remove additional items from the list. Jessica Ace seconded both motions, but they both failed. The motions involved two items relating to Class Size and reducing staffing in the 6-8 Music programs by 1 FTE.

President Fox restated the original motion to approve the list of Final Budget Reduction Recommendations Without Building Consolidation, dated 3/23/10 as presented, with the above named items removed. The motion carried.

The Board will meet on Wednesday, April 7 to discuss the budget reduction items that were pulled from the list during tonight’s meeting.

MOTION: Peter Sobol moved approval of the revisions to the Board Rule 343.2 - Guidelines for Class Size. Jason McCutchin seconded.

ROLL CALL VOTE: Motion carries on a vote of 6-1. Susan Manning voted Nay.

The Board conducted a variety of other board business, which can be found in the minutes on the district website.

Herald-Independent Articles:

Maywood will stay open at least one more year

http://heraldindependentonline.com/main.asp?SectionID=2&SubSectionID=21&ArticleID=1629&TM=66063.24

$745,500 in cuts approved by school board

http://heraldindependentonline.com/main.asp?SectionID=2&subsectionID=21&articleID=1630

MG Budget Decisions Must Be Carefully Considered By Dean Bowles

From the Herald-Independent:

After the recent public hearings and board meetings I feel compelled to write this letter. Your budget decisions over the next weeks and months will not be easy but are vital to the quality of the Monona Grove Schools, schools that our children attended, and my wife and I have supported for 44 years.


Three-Year Budget Plan. The FY2011 budget decisions should be in the context of at least a 3-year budget plan since state school aids will be no better, and probably worse, in the next biennium, and revenue caps are likely to remain. In short, this year’s $1 million budget cuts, while difficult, will be easier than in any of the next three years.


Fund Balance. Make no decisions that put the MG schools in a long-term structural deficit. I have heard casual, uninformed talk that “MG has a “slush fund,” “rainy-day fund,” or “money hidden in the budget” that could be used to save programs. Not so. However, MG has a minimal “Fund Balance” of about $5 million that is vital to the financial health of the MG schools and should stay at 15%-25% of the budget which is also Board policy. The Fund Balance should not be considered a “cash” balance but an asset that pays for ongoing liabilities during the school year to avoid high interest, short-term borrowing and low financial ratings. Tinkering with the current Fund Balance will be costly in the long haul and only make future budget decisions even more difficult.


Procrastination and Delay. Procrastination and delay will only make the problem greater. Act and vote incrementally with the best available information after you have had informed recommendations. Make perhaps 120% of the cuts necessary to balance the budget. All this should be done with the expectation that the Board will act on and amend the preliminary budget when the whole package is assembled incrementally.


Dean Bowles is a former Mayor of Monona, a Deputy State Superintendent of Schools, and Professor of Educational Leadership & Policy Analysis.

Full Article:

http://heraldindependentonline.com/main.asp?Search=1&ArticleID=1609&SectionID=5&SubSectionID=127&S=1

Monona 6th Grade Moves to Glacial Drumlin

Reed Foster, PEP (Physical Education Progress) Grant Coordinator and MG Teacher, presented an update to the Board regarding the PEP Grant that district received from the US Department of Education. This three-year grant, valued at $541,000 over the three years, will help make a change in our physical education program. Mr. Foster shared information on what changes are being made in the district.

Location of 6^th Grade Programming. President Fox asked for a motion to accept the administrative recommendation prior to holding discussion.

MOTION: Jason McCutchin moved to accept the Administrative Recommendation to move the 6^th grade students from Winnequah to Glacial Drumlin, beginning in the 2010-2011 school year and Jill List seconded.

MOTION: Susan Manning asked to amend the previous motion and to delay this decision by two weeks in order to address open enrollment and budget decisions. The motion failed for lack of a second.

The Board had lengthy discussion regarding this topic, including items such as busing, furniture, and efficiencies in programming and staff. Many members indicated that this is the most difficult decision that they have had to make since being on the Board. In addition, some mentioned that they realize there are inefficiencies with not combining the 6th grade students and above all, they agree that educationally this is in the interest of our students.

ROLL CALL VOTE: Motion carries on a vote of 6-1. Susan Manning voted Nay.

The Board will vote on the consolidation of Maywood and Winnequah prior to the reductions discussion at the March 24, 2010 meeting.

The Board conducted a variety of other board business, which can be found in the minutes on the district website.

Herald-Independent Article:

http://heraldindependentonline.com/main.asp?SectionID=2&SubSectionID=21&ArticleID=1600&TM=63049.93

School District Must Seek a Referendum By Robb Kahl

From the Herald-Independent:

Residents of the Monona Grove School District are hopefully by now beginning to fully understand the dire financial situation confronting our district. However, I think a quick recap is in order to ensure everyone fully comprehends the extent of the problem.


This is not a $1 million dollar budget hole that can be fixed this year with cuts including closing Maywood School. The district’s problems are much larger than that. Superintendent Gerlach has often referred to this as a $15 million dollar operating budget deficit and I know there are many questions of how he comes to that total. Quite simply, using a five year projection the total amounts to $15 million because the district needs to make $1 million in cuts each year in addition to the money cut in preceding years.


The multi-faceted state funding mechanism for public schools is not going to change anytime soon so revenue from that source will flatten off at best and more likely decrease in coming years. That leaves us with the option of either raising property taxes or cutting operational costs. It is apparent to anyone with a calculator that the district will need to go to a referendum to raise more property taxes and do so soon as it is simply unfeasible to make the total amount of needed cuts. The “plan” of the district is, prior to going to that referendum, to have some “blood in the streets” in their own words by undergoing significant cuts to programming and closing Maywood School. After this blood letting, they will then come to the citizens of the district within the next year or so and ask for permission to exceed the property tax levy limits.


Mr. Kahl is the Mayor of Monona.


Full Article:
http://heraldindependentonline.com/main.asp?Search=1&ArticleID=1564&SectionID=5&SubSectionID=127&S=1

No Modular Units in Cottage Grove, Other Decisions Delayed

Superintendent Gerlach gave a brief update to the Board regarding Open Enrollment.  There were approximately 184 new applications into the district and 41 applications out of the district.

Superintendent Gerlach talked briefly about the Nichols property.  He and Mary Ellen VanValin, Director of Business Services, have met and will be ordering an appraisal on the property.

The Board had extensive discussion on the ramifications of the location of the district’s 6th graders.  There were questions and concerns raised, including costs, efficiencies and space.  The deadline date for the decision is March 10, 2010.  Administration and staff discussed the inefficiencies in running two programs in two separate buildings.  They stated that they are confident that there is ample space at Glacial Drumlin to house all 6^th graders.  Superintendent Gerlach mentioned that educationally it makes sense to put our 6^th graders together.  Additional information will be sent home with students next week.

The Board had discussion regarding the possible consolidation of Maywood and Winnequah Schools. Principals Ann Schroeder and Connie Haessly were available for questions.  There was additional discussion on cost concerns and spacing, especially availability of space for future growth.  The Board will make a decision on this item at the March 24 Board meeting.

The Board received additional information regarding the costs related to placement of modular units in Cottage Grove and had further discussion on the issue.  Administration recommended that modular not be added in Cottage Grove because CG Elementary will function next year as it has this past year in terms of space.  More space will be available at Taylor Prairie next year due to a decrease in kindergarten enrollment, and the belief that crowding issues may take care of themselves if enrollment decreases.

MOTION: Jason McCutchin moved that the Board accept the administrative recommendation not to add modular units to any schools in Cottage Grove in the next year.  Lionel Norton seconded and discussion was held.

MOTION – Susan Manning moved to table a decision on modular units until the March 10 School Board meeting and Jill List seconded. Motion failed.

Vote on the original motion.  Motion carried.

Herald-Independent Article:

http://heraldindependentonline.com/main.asp?Search=1&ArticleID=1565&SectionID=2&SubSectionID=52&S=1

The following items were added as future agenda items: Written report and presentation on open enrollment; 4K enrollment report, including information on residents vs. non-resident, procedure for assigning students to specific sites, and numbers; Strategic plan update; report on 3 years of budget cuts; Cost of moving District Office to Maywood and Winnequah; District split; update on Nichols (if sold, what would monies be used for); real estate analysis and district profile.

The Board conducted a variety of other board business, which can be found in the minutes on the district website.

Long-Term Budget Fix Must Include Reduction in Staff Compensation By Mike Mikalsen

From the Herald-Independent:

It should come as no surprise that the Monona Grove School District is struggling to devise a plan to reduce spending. That is simply the way of the world as we all focus on surviving this severe recession. However, the problems confronting our school district are not just the result of the current economic calamity, but a fundamental cancer that has plagued all levels of government for several years. That cancer is unsustainable spending levels.


The State of Wisconsin certainly shares in some of the blame by encouraging school districts to spend and then promising to pay about 2/3 of statewide public school costs. The single largest state funded program is K-12 public education. In the current school year (2009-10), the state will spend $5 billion on public school aid, which amounts to 37.3 percent of the entire state general fund budget. The remaining 1/3 is financed through the local property tax and other revenue sources.


In this week’s edition, you will also read a column from Peter McKeever of Monona who feels passionately that the school district should not cut one dollar and, in fact, he called for a referendum to exceed to the state revenue limit on the district’s property tax levy. I respectfully disagree with Mr. McKeever’s proposal for increasing property taxes. Now is not the time to solve our district’s spending problems by simply taking more money from our families and senior citizens.


We can wish that the situation facing our school district was different, but the financial realities only get worse for the children if the residents of Cottage Grove and Monona fail to come together behind well-crafted long term budget reductions. Frankly, I am disappointed that many of the preliminary budget reductions being advanced by district officials have significant direct impact on children. At the same time, the list of preliminary reductions seems to avoid employee compensation concessions and aggressive reductions in non-academic areas of the budget, especially in administration.

Mr. Mikalsen currently serves as the Cottage Grove Village President. He has worked on education policy in the Wisconsin State Assembly as a Research Assistant and Policy Analyst since 1991. He also previously served on the Mosinee School Board.

Full Article:

http://heraldindependentonline.com/main.asp?Search=1&ArticleID=1551&SectionID=5&SubSectionID=127&S=1