A survey that was sent out to Butternut School District residents in Ashland and Price counties is designed to guide the school board planning process for the future of the school district with under 200 enrollment in pre-kindergarten through 12th grade.
The survey is gauging support for a referendum to allow the school district to exceed its revenue limits by $1.2 million each year from the 2024-25 school year to the 2027-28 school year. The plan is a response to the school district property tax mil rate decreasing by 46% over four years, requiring the school district to draw more than 200% of its Besse fund in four years.
Less than 15% of school district revenue came from the Besse fund until the 2021-22 school year when it increased to around 20%. The level increased to around 26% in 2022-23, and approximately 33% for the 2023-24 school year.
The referendum would allow the school district to maintain its fund balance for unforeseen emergencies and to avoid short-term borrowing at higher interest rates, stated Superintendent Benjamin Heninger in the survey. The decrease in enrolled students and corresponding drop in anticipated state funding has left the school district in a difficult position to sustain itself.
Heninger was not available for comment until further notice, according to the school office. As of April, Heninger was one of three finalists being interviewed for the Manawa School District in Waupaca County, according to the Waupaca County News.
“Please trust that we remain committed to finalizing a plan that addresses the most important budget challenges, yet reflects the priorities of our local taxpayers,” the survey stated, referring to the Butternut School District Board, with members Gary Mertig, president; George Faltinosky, vice president; Randy Smart, treasurer; Katie Weinberger, clerk; and Shawn Heckendorf.
The survey details the financial challenges of the past four years with the allowable share of funding under the existing state revenue limits decreasing by nearly $450,000. Inflation and the cost of service providers, insurance, transportation and utilities have increased significantly during the same period.
“This has quickly put our small district into an unstable position with declining student enrollment and shrinking sources of shared revenue under the current school funding formula,” stated Heninger in the survey. “Many small school districts across Wisconsin like ours are asking their communities for additional funding.”
Without identifying another source of revenue the survey states that the school district may need to close, reconfigure, and/or consolidate with neighboring districts within the next few years. As the largest employer in the Butternut area, the loss of the community school would also impact the community.
The school district mil rate has remained at just under $12 per $100,000 of assessed property value since the 1994-95 school year. If approved the referendum would increase the assessed property value to $798 annually for every $100,000 in value.
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