Monticello schools plan cuts and explore voter levies as enrollment decline squeezes budget

Superintendent Eric Olsen and Director of Business Services Tina Burkholder told the Monticello Public School District board on March 3 that declining enrollment has pushed the district toward budget realignment and that district leaders are preparing staff and buildings for staffing changes and other reductions.

Olsen said the district’s primary revenue source is state aid: “The largest source of our revenue comes from the state, 76%,” and noted that both state aid and property tax revenue are driven by student enrollment. Burkholder told board members the district aims to hit a minimum unassigned fund balance of 8% of expenditures next year under its fund-balance policy (target range 8–16%). She said the district ended the prior fiscal year at 9.2% but after the current revision expects to end this year at about 7.88%, below the policy minimum.

The nut graf: With nearly 80% of spending on salaries and benefits, administrators presented a two-round realignment that prioritizes keeping cuts as distant from classroom instruction as possible while meeting a fund-balance target. Financial advisers from Ehlers described voter-based tools the board could use to shore up recurring revenue and explained timing, tax impacts and legal limits for those options.

Board presentation and planned reductions

Burkh…