Slight Drop Expected in School Taxes Once Again

The climate for budget planning in the is markedly less volatile than last year when school officials were held in a state of flux awaiting the approval of the state budget.

Now, in the second year of the state budget cycle, the district has more solid information about its state funding picture as it begins to develop assumptions for a spending plan next school year. That doesn’t mean the facts from the state are necessarily more positive. However, taxpayers will likely welcome another slight reduction in the school district portion of their tax bills.

Despite another decrease in overall revenue, Falls taxpayers should see a small decrease in school taxes for the second year in a row.

Superintendent Patricia Greco said officials anticipate the district tax rate to decrease from $11.07 per $1,000 of assessed value to $11.02 per $1,000 next year. That equates to a tax payment of approximately $2,755 for the owner of home assessed at $250,000.

State equalization aid is once again expected to decrease 15 percent next year from roughly $7.2 million this year, according to total state revenue figures from the . Overall, district officials are expecting to work with a $46.3 million revenue limit in 2012-13, which is a 1 percent decrease from $46.7 million last year.

“It is not the most challenging budget the district has ever seen…we believe we are planning it well based on the information that we have right now,” Greco said.

The district portion of the tax bill does not include the village portion or Waukesha County Technical College portion of a property tax bill. Greco also emphasized these figures are based on the district’s assumptions about enrollment and stable federal and state policies. These figures could change slightly as the planning process moves forward.

In order to buffer a decrease in overall revenue, the district will decrease overall spending by 0.5 percent. The district hopes to limit layoffs, but will likely cut between seven to 12 teaching positions. That equates to a savings of about $546,000. The district will send out some 60 to 70 preliminary layoff notices in a month.

Currently, layoffs are based on seniority and levels of certification. However, that will all change next year when the district moves to a merit-based employment system.

“This is going to be a whole new discussion next year,” said board member Lori Blodorn. “Seniority is sunsetting here in Menomonee Falls.”

Several other cost saving measures implemented this year should also buffer the impact a reduced budget will have on programs and staff. District staff agreed to by 3.5 percent, which netted the district a savings of $230,000.

Overall health insurance costs decreased by 5 percent, or $300,000, by switching providers from the WEA Trust to Humana. The district is also moving toward a self-funded model for health coverage.

Additionally, district officials agreed to prepay outstanding debt, which will save the district a total of $230,000 over the next ten years. A $25,000 administrative assistant position was eliminated, custodial services were restructured, and the district reduced its out of district costs for special education as additional cost saving measure.

“We want to make sure (the budget) makes a significant difference for student learning with limited resources and funneling it together to make sure that the net outcome stays strong,” Greco said.

The budget development is an 18-month process, and will continue to become clearer in the coming months. The preliminary budget will be discussed again at the March 26 School Board meeting, and will move forward for a vote on April 23. The final budget is voted for approval by taxpayers in fall.