Superintendent’s Corner
By Andrea Sheridan and Beth Steinke
This month, I chose to co-author this article with my colleague, Beth Steinke, business office manager, who lends her expertise and understanding regarding school finance. We recognize how very timely the opportunity is to communicate school district budget information with the members of our community.
The school district financial calendar spans July 1 to June 30, and is used as a guide to keep the board of education informed of the financial condition of the district. During monthly school board meetings, the business office manager and superintendent review financial statements, provide school finance education, and share a summary of the school district operational costs.
Voters in the School District of Athens approved the district’s non-recurring operational referendum that was on the April 4 spring election ballot. The measure allowed the district to exceed its state-set revenue limits by $1.67 million in 2023-24 and by $1.2 million for each of the next three years. Several months have passed since the spring referendum, and we are pleased to provide an updated financial forecast for the current fiscal year.
The Wisconsin school funding formula is complex, and the Department of Public Instruction (DPI) provides school district officials with the following guidance: “Public schools in Wisconsin are funded with a combination of revenues including various state and federal education aids. Revenue is derived through four major sources: state aid, property tax, federal aid, and other local non-property tax revenues. School district membership data are used to determine revenue limits, which in combination with the general school aids, determine school boards’ maximum property tax levies.”
The School District of Athens has experienced an increase in membership counts the past three years. Membership is based upon the September third Friday count of the students in attendance on that day, and includes open enrolled students in and out of the district, which is prorated. Revenue limits are based upon a three-year “rolling” average of September membership. The current threeyear full-time average membership count is 437. On October 1, property values were released by the Department of Revenue, and on October 15, the DPI released certified aid figures. The general school aid amounts for school districts are calculated using membership counts, and year-end financial data from the previous school year. This information is necessary to determine the mill rate, and establish the tax levy.
Property values continue to increase, which in turn decreased the district’s 2023-2024 mill rate to $9.50, lower than projected, and communicated during the spring referendum season. On Monday, October 23, the Athens Board of Education approved the 2023-2024 tax levy of $3,733,308. The total tax levy is higher than 2022-2023 due to the passing of a four-year non-recurring operational referendum, and an increase of $325 per member in the state biennial budget. This increased revenue allows the district to maintain programming for all students, repay debt, address deferred maintenance projects, and reestablish the fund balance.
Maintaining a healthy fund balance reduces the expense of short-term borrowing, provides funds to cover unforeseen one-time expenses, and demonstrates financial stability. The district is committed to rebuilding the fund balance, which has been decreasing since 2016-2017, by balancing revenues and expenditures which comprise the overall annual operating budget.
The process to rebuild a healthy, stable, and sustainable school district budget will take time, and due diligence. Our continued collective efforts, using a conservative approach to budgeting, will help us meet our future financial goals. We invite you to attend our monthly school board meetings to learn more about the financial operations of the School District of Athens.
Andrea Sheridan
