Sheboygan Area School District superintendent cites $1.6 million shortfall, warns of state aid and voucher impacts
Summary
Superintendent Dr. Conrad told the school board the district faces an approximate $1.6 million deficit, attributing part of the pressure to lower-than-promised special education reimbursement rates and about $7.3 million of local levy dollars flowing to voucher schools; trustees received the update and no layoffs were announced.
Superintendent Dr. Conrad told the Sheboygan Area School District Board of Education on Dec. 8 that the district currently faces an approximate $1,600,000 budget deficit and is preparing communications to staff and families about next steps.
"Our deficit right now stands at about 1,600,000," Dr. Conrad said during the superintendent's report, adding that district leaders will update staff and explain that mass layoffs are not expected. He said the district saw no increase in state aid despite a statewide surplus and that special education reimbursement rates have fallen short of earlier promises.
Conrad said special education reimbursement is coming in closer to the mid-to-high 30s percentage — "around 38, 39%" — rather than the 42% the district had been led to expect, and that this shortfall contributes to the current gap. He also said approximately 18% of the local levy — about $7,300,000 — is going to voucher schools while their enrollment remains relatively unchanged.
Board members praised the superintendent's proactive communications. "I really appreciate the fact that that came out in the news just a day ago," one member said, commending the administration's transparency. The board did not vote on any budget reductions at the meeting; Conrad said staff would receive a letter outlining the district's fiscal position and that further recommendations would follow.
The superintendent also said the district will include similar messaging in an upcoming family newsletter and a community newsletter in January. He thanked finance and operations staff for ongoing work to identify savings and efficiencies.
The board did not adopt any formal reductions or personnel actions at the meeting; it moved later into closed session to consider personnel matters under the statute cited on the record.
