Superintendent Anderson says $5.7 million shortfall will require staff reductions; offers two proposals and a path to a referendum

Superintendent Doctor Anderson told the School District of Beloit Board of Education on May 12 that the district’s projected shortfall had widened to about $5.7 million and that “there is no way out of the deficit without personnel cuts.” He presented two options — Proposal A, which preserves most programs but reduces staff, and Proposal B, a more aggressive consolidation plan that would reassign programs and close or repurpose buildings to achieve larger savings.

Why it matters: Anderson said higher health‑insurance and transportation costs pushed the gap beyond initial estimates and warned of a larger fiscal cliff in coming years if enrollment continues to fall. He urged the board to pair short‑term measures (vacant‑position eliminations, one‑time OPEB dollars) with a clearly detailed referendum asking voters to restore specific positions or services.

Details of the proposals: Anderson described Proposal A as focused on eliminating vacant positions and modest staff reductions that keep schools and programs largely intact; he estimated cutting 37 vacant positions would save roughly $3.87 million. Proposal B would move programs between buildings and enact deeper structural changes to yield greater savings but would cause more disruption. Anderson repeatedly emphasized tradeoffs: using OPEB or fund equity can reduce immediate pain but removes those resources from future years.

Board members asked about timing and likely revenue. Director Ellwood said portions of proposed state aid could arrive this year (special‑education aid) and additional equalization aid in 2026–27; estimates discussed during the meeting included a potential $500,000 this school year and a larger, but uncertain, sum next year. Several directors stressed that some state aid proposals buy down taxpayers’ bills rather than provide spendable dollars for operations.

Enrollment and a referendum: Multiple board members said stabilizing or reversing student enrollment is essential to long‑term fiscal health. Several speakers urged a narrowly tailored referendum that lists specific positions and dollar amounts, and Anderson said referendum questions must be finalized by the state deadline in August if the board chooses that path. He recommended immediate community engagement — building‑level meetings and a district finance committee with stakeholder representation — so the board can present voters with a clear package.

What’s next: Anderson said he would produce several budget options reflecting varying degrees of staff reductions and one‑time funding use and return to the board at its next meeting. The board voted to extend the meeting to hear more discussion and later adjourned after directing staff to prepare options.

Quotes and attributions: “There is no way out of the deficit without personnel cuts,” Anderson told the board. Board members repeated calls for transparency and asked staff to show revenue sources and program‑by‑program tradeoffs before any final action.

Ending: The board did not take formal action on layoffs or program closures at the meeting. Anderson said staff would present refined options by the next board meeting and recommended broad community engagement and careful drafting of any referendum question before the August deadline.