Board approves budget amendment to record hail-damage insurance payments; finance update flags operating deficit

The Rice Lake Area School District board on June 9 approved a budget amendment to record insurance proceeds and expenditures related to hail damage and received a finance committee update that the district is projecting an operating deficit.

District staff explained that the district previously sustained significant hail-related damage and will increase affected budget lines after insurance reimbursements. As one staff speaker described the past event, "it was over $2,000,000 in total damage in the district when that happened." Earlier in the meeting a staff member noted one of the budget amendments to be presented was for about $1,300,000 to reflect hail-damage reimbursements and related spending.

Finance committee report: a committee presenter said the 2024–25 budget is expected to finish slightly better than projected thanks to some one-time revenues, but that the district still faces a deficit for the year and anticipates operating challenges in 2025–26. The presenter said an amendment was required primarily to record hail-related insurance payments and associated accounting changes under state law.

Board action: the board moved, seconded and approved the proposed 2024–25 budget amendment to record the insurance payments and one-time revenues tied to hail damage. Later in the meeting the board also approved teacher contracts for the 2025–26 school year.

The ledger and audit process are being prepared for year-end; district staff said final audit numbers could change as the district completes audit season.

Quotations in this story come from statements recorded in the board meeting transcript.