John Stellmacher, CFO Kettle Moraine School District The Big Four - PowerPoint PPT Presentation

John Stellmacher, CFO Kettle Moraine School District

The Big Four 1. Low Revenue Per Pupil 2. Declining Enrollment 3. Health Insurance 4. Transportation / 90 Square Miles

While the District’s Revenue Remains Flat, Inflation Rises

Our Budget Instruction & Pupil Services - 58% Operations - 16% Facilities - 12% Administration - 6% Transportation - 5% Food Service/Community Service - 3% DPI comparative cost data

True Transparency And Fiscal Conservatism The only Wisconsin school district to receive the ASBO International Certificate of Excellence in Financial Reporting for the past 25 years - and only 4% in the nation achieved this recognition. One of four districts in Wisconsin to receive an AA+ rating, which is the highest rating achieved by any district in the state from Standard & Poor’s Global.

2006-07 - Increased Class Sizes 2007-08 - Made Health Insurance Changes 2008-09 - Increased Class Sizes, Eliminated Programming 2009-10 - Increased Class Sizes, Eliminated Programming 2010-11 - Increased Enrollment through addition of 4K 2011-12 - Employee Contributions to Benefits 2012-13 - Insurance Changes, Retirement Benefits Eliminated Meeting 2013-14 - Health Insurance Redesign 2014-15 - Capital referendum, Health Insurance Redesign, Fees Increase Ongoing 2015-16 - Technology Parent Partnership to share costs 2016-17 - Health Insurance Changes Challenges 2017-18 - Health Insurance Changes 2018-19 - Health Insurance Changes, Reduced 22 FTE 2019-20 - Reduction of 16 FTE, Eliminated Programming, Fee Increase

Steps Taken To Balance Our Budget - Reductions every year since 2006-07 - $17.1 million in cuts $17.1 Million in - $1,221,000 per year, on average - Annual average cut of 2.32% Reductions - 28% of our budget VIEW REPORTS

KM Spends $712,000 Less Annually On Administration Than Comparable-Sized Districts 2nd-lowest among the 19 districts in Waukesha County on a per-pupil basis - 2017-18 Dept of Public Instruction comparative cost data

Operating vs. Capital Referendum

CAPITAL Capital Referendums incur debt for facilities (cannot be used for operational expenses)

2014 $49.6 Million Capital Referendum Provided: $21.2M in Deferred Maintenance $8.0M in Technology Infrastructure $12.6M in Safety and Security $ 7.0M in Limited Renovated Space

OPERATING Operating Referendums are utilized for operating expenses (not debt) - Personnel - Transportation - Utilities - Programs - Co-curriculars

We listened after the April, 2019 referendum. KM is asking for what it needs, when it’s needed. This is not a Band Aid. There is no cliff. This funding offers a sustained future with 100% of tax dollars staying in Kettle Moraine.

What KM needs, when KM needs it $2,500,000 for the 2020-2021 school year + $1,500,000 for the 2021-2022 school year + $1,500,000 for the 2022-2023 school year + $1,500,000 for the 2023-2024 school year ...which equals $7,000,000 in sustained funding on an annual basis.

Legally-required language Legally-required language Gives the board authority, Not a Band Aid but they are not required to utilize it

} ONE-TIME INCREASE Tax Rate Stays Flat at $9.78 The tax rate, as a result of a successful referendum, will increase by $0.15 (per $1,000 of property value) in the first year. This referendum WILL NOT INCREASE the tax rate above $9.78 in future years. It is a one-time increase. For example, a home valued at $400k would see the following impact: Tax Year Home Value KM Tax Impact 2020 $400K $3,852 2021 $400K $3,912 2022 $400K $3,912 2023 $400K $3,912 2024 $400K $3,912 2025 $400K $3,912 2026 $400K $3,912

KM Tax Rate Over Time 8 th lowest tax rate in the past 36 years.

Current Funding Reality: 81% of all WI Districts Have Passed Operating Referenda, the choice our Wisconsin legislature prefers to provide communities 697 Operating Referenda Passed By WI School Districts Since 1996 Custom Referenda Reports: DPI.WI.gov

We’re Not Alone Here’s Just A Sampling Of WI School Districts Who Recently Passed An Operating Referendum Sturgeon Bay • Sun Prairie • Shorewood • Mukwonago • Marshall • Potosi • Salem • Tomah • West Salem • Glendale-River Hills Frederic • Deforest • Fort Atkinson • Whitewater • Watertown • Stevens Point • Southern Door County • South Milwaukee Big Foot • Northland Pines • Wisconsin Heights • Goodman-Armstrong • Holmen • Laona • Oregon • Rhinelander Onalaska • East Troy • New Glarus • Whitewater • Monona Grove • Marathon City • Middleton-Cross Plains • Mineral Point Manawa • Loyal • Jefferson • Hillsboro • Fox Point • Gillett • Juda • Delavan-Darien • Edgerton • Elkhart Lake-Glenbeulah Brodhead • Bangor • Fontana • Westby • Valders • Shullsburg • Randall • Necedah • Merrill • Markesan • New Lisbon Mondovi • Manitowoc • Lacrosse • Hustisford • Kiel • Howard-Suamico • Gilman • Ellsworth • Clayton • Cambria-Friesland Alma • Adams-Friendship • Hamilton • Princeton • Florence • Three Lakes • Shiocton • Benton • Lakeland • Green Bay VIEW MORE DATA

Sustainability Study: “Further cuts diminish edcational excellence.” ONLY VIABLE OPTIONS: Referendum and legislative change VIEW REPORT

Voter Information Registration Deadlines for the April 7, 2020 Spring Election March 18, 2020 - Deadline to Register by Mail March 18, 2020 - Deadline to Register to vote online. April 3, 2020 @ 5:00 p.m. Deadline to Register in Your Municipal Clerk’s Office April 7, 2020 from 7:00 a.m.-8:00 p.m. Register to Vote at Your Polling Place Please visit My Vote Wisconsion for all voting information: Absentee Voting Deadlines For April 7, 2020 Spring Election April 2, 2020 @ https://myvote.wi.gov/en-us/ 5:00 p.m. - Deadline to Request an Absentee Ballot: Regular and Permanent Overseas Voters April 3, 2020 @ 5:00 p.m. - Deadline to Request an Absentee Ballot: Indefinitely Confined Possibly though April 5, 2020 - Deadline for In-Person Absentee April 7, 2020 @ 5:00 p.m. - Deadline for Hospitalized Voters April 7, 2020 @ 5:00 p.m. - Deadline to Request an Absentee Ballot: Military April 7, 2020 @ 8:00 p.m. - Deadline to Return Absentee Ballot