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Viroqua Area School District warns budget shortfall could force staff reductions as ESSER funds end
Summary
District business staff told the board that expiration of ESSER funds and declining enrollment leave a projected $250,000 deficit and could require staffing reductions and benefit plan changes unless revenue or expenses change.
Mike, the district’s finance presenter, told the Viroqua Area School District board that expiring federal ESSER funds and falling enrollment are creating a ‘‘fiscal cliff’’ that could force staff reductions.
"That ESSER funding has to be expended by the end of September 2024," Mike said in the budget presentation, explaining the district used ESSER to fund salaries, summer school and some capital items. He said payroll funded by ESSER in 2023–24 totaled about $637,008 and that total budgeted salaries and benefits paid through the tax levy and state aid are approximately $13,330,000.
The presentation cited a projected enrollment decline (about 53 students fewer in 2024–25 by head count) and noted that September FTEs drive state revenue, so the district’s revenue limit will not keep pace with expenses. "The fiscal cliff created by inadequate increases in the revenue limits since 2019, along with the expiration of the asset funding, will result in a reduction of staff," Mike said.
Board members heard that the district faces a preliminary $250,000 deficit coming into the budget process and that routine cost drivers such as health insurance and salary inflation will intensify the gap. Mike said the district expects its spendable revenue limit to rise only modestly (he cited an anticipated increase of roughly $262,820), and that every 1 percentage-point increase in wages and benefits equates to roughly $126,900 in additional cost after removing ESSER-funded positions.
Board members asked about outreach to legislators and about distributing the presentation to state representatives; Mike said the presentation materials have been provided previously and can be shared again. He also told the board that staff will meet over the coming weeks to refine staffing projections and consider health-insurance plan-design changes ahead of renewal.
Why it matters: The combination of a revenue limit that is not keeping pace with inflation and the exhaustion of one-time federal pandemic funds means the board will likely face choices affecting staff levels, benefits and program offerings. According to the presentation, administrators expect to have clearer staffing recommendations within about three weeks.
What’s next: Administrators will return with refined staffing and benefit-change proposals as the budget process continues, and the board will consider formal budget actions in upcoming meetings.
