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MILTON — The Milton School District on Wednesday night held the first of a series of three “Community Focus Group on Long Term Financial Planning” sessions.
The event was an informational and question-and-answer session open to the public.
Superintendent Rich Dahman and Business Services Director Ross MacPherson gave a history of school finance in the state and the district, and fielded questions from a group of about 30 community attendees.
Dahman and MacPherson spoke about the district’s funding challenges.
MacPherson referenced the state model for funding that went into effect in 1993-94 with Act 16, which he called the “three-legged stool” of school finance. The three components he spoke of are a state two-thirds funding commitment, which was removed in 2003; a qualified economic offer, which was removed in 2009; and revenue limits, which are still in place.
“Two legs of the stool are gone,” MacPherson said.
“The state system that Ross references has really created a system of haves and have nots,” Dahman added.
Since 2009, MacPherson said, revenue limits haven’t kept up with inflation, which has led to districts being on average $3,300 behind the rate of inflation, when they were on pace with it before then.
He said the pressures have increased since inflation has accelerated in recent years.
“We weren’t seeing dollars that were keeping up with those increased costs with inflation,” MacPherson said.
Since then, the number of referendums have increased in the state. The last one approved in Milton was in 2019.
“As more districts are going to referendums, does that incentivize state government to not increase school funding?” asked community member Claire Gray.
“I’m going to avoid the political answer. Yes,” MacPherson replied.
Dahman said that being mindful of taxpayer dollars, and just dollars overall in the district, is essential for its well-being. He spoke about the district’s finances in terms of a pie graph, and how about 75% of it is made of people, through salaries and benefits for staff.
“We’re competing with other districts and we’re competing with private businesses. Kwik Trip can pay higher wages by raising the price of its gas. We can’t do that,” Dahman said.
MacPherson was asked about the district’s fund balance, which is consistently at 23%, a good number, he said.
“We are cash poor in September. We are at 23% with fund balance so we don’t need to go to local banks for a line of credit. We don’t have to rack up unneeded debt,” MacPherson said.
MacPherson and Dahman were also asked to present information on turnover rates.
The next session will be June 12 on the district’s budgeting factors, which will entail a presentation on funding data, tax levy factors and composition of budgetary dollars. The third will be June 26, which will be “looking to future budgets.” That will entail future budgetary challenges, operating needs and estimated tax levy impacts.
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