Rob Nelson outlines Hartford UHS School District funding picture as board eyes budget hearing

Rob Nelson told the Hartford UHS School District board that the district’s audited fund balance is about $7.1 million and that staff added roughly $335,000 to reserves this year after stronger-than-expected interest income and finalized prior-year Medicaid reimbursements. Nelson led a detailed review of the district’s fund structure, revenue-limit mechanics, enrollment trends and budget pressures.

The presentation laid out the seven funds the district tracks: Fund 10 (general operations), Fund 21 (donations/fundraising), Fund 27 (special education), Fund 38 (non-referendum debt service), Fund 41 and Fund 46 (capital projects/reserves) and Fund 50 (food service). "For the most part, when I hear taxpayers speak about the district's budget they're talking about Fund 10," Nelson said.

Nelson said about 86% of Fund 10 revenues come from the state revenue limit (property tax plus state aid), and he gave an illustrative per-pupil figure of roughly $11,800 and a current budgeted revenue limit of about $18.3 million. He urged the board to watch enrollment closely: the state’s required third‑Friday student count, which finalizes the number of resident students used in the calculation, was scheduled for the day after the workshop.

Special education is a major pressure, Nelson said: Fund 27 requires year‑end transfers from Fund 10 when state reimbursements fall short. "We look at the prior year expense… it runs around 30% of those costs are reimbursed," he said, adding that district leaders and business managers are advocating at the state level for a higher reimbursement rate. Nelson also told the board that the district transferred about $1.4 million into Fund 27 in each of the past two years.

Nelson described several recurring budget constraints: non‑referendum debt service that reduces the revenue limit (he said Fund 38 requires roughly $624,000–$625,000 in principal-and-interest this year), open enrollment outflows that he estimated have a net effect of nearly $1.4 million annually, and parental‑choice voucher payments that he said amount to about $400,000. He also noted a post‑employment (OPEB) liability in the neighborhood of $700,000 and that federal ESSER pandemic funds (about $1.6 million over several rounds) are now spent down.

On long‑range outlook, Nelson cited a demographic study using UW–Madison data indicating a 10–14% enrollment decline over five years if local conditions do not change. He described using a budget‑forecast model to test scenarios and said the district had already cut roughly $1 million in expenditures from the prior budget. At the time of the presentation he projected a roughly $165,000 deficit for the next year under the assumptions shown to the board.

Nelson reviewed capital and reserve funds, saying Fund 41 currently holds about $113,000 for planned projects and Fund 46 functions as a multi‑year reserve that requires money to sit five years before spending; he noted a prior $551,000 deposit to Fund 46 that later funded a land purchase. He also praised the food‑service operation and manager Monica, noting Fund 50 is largely self‑sustaining and is used to buy equipment and support meal programs for partner K–8 schools.

Board members asked clarifying questions about IEP transfers, the timing of staffing decisions, and how reassessments and property values interact with state equalization aid. Nelson reminded the board that the district’s budget hearing and annual meeting are scheduled for Monday, Oct. 28, at which the board will present the final budget and certify the tax levy.

The workshop concluded with procedural motions to adopt the agenda and to adjourn; both passed by voice vote.

Next steps: the board will finalize the audit entries, monitor the third‑Friday count, and return at the Oct. 28 budget hearing to certify the levy and adopt the final budget.