KUSD approves $7.5 million loan for secured entrances, adopts staff AI policy and teaching‑load rule as board weighs operational referendum

The Kenosha Unified School District board voted April 28 to authorize financing to complete secured entrances at seven schools and acted on a string of policy and budget items that together set the district on a path toward a possible operational referendum.

Loan for secured entrances

Administration recommended using a Wisconsin State Trust Fund 10‑year loan to finance the $7.5 million project to bring school entryways up to the approved secure‑entrance standard. CFO/finance staff explained the loan’s structure at roughly 5.75% interest, its parity with bond rates, and its no‑prepayment‑penalty feature; the district plans to apply any proceeds from future property sales to pay down principal early.

CFO Mr. Hampden described the loan as “financial planning” that avoids taking a single large hit to reserves and reduces the risk of short‑term borrowing when unanticipated costs occur. Public commenter Scott Farnsworth had urged using the district’s unassigned fund balance instead of borrowing; administration replied that reserves are needed to absorb other near‑term demands and preserve cash for grant timing and unexpected events.

After discussion the board moved, seconded and adopted Resolution No. 462 authorizing the loan and directing administration to publish the required Class 1 notice.

AI policy and teaching‑load rules

On policy matters the board approved Rule 42.26.1 governing staff use of generative artificial intelligence as a second reading. Presenters emphasized protections including a vetted‑tools list, prohibitions on inputting personally identifiable information into public AI sites, and staff accountability expectations; a student representative described positive instructional uses. Board members agreed to schedule periodic review (the board requested an annual July review cadence).

The board also approved revisions to Policy/Rule 4351.1 (teaching load) as both a first and second reading with a friendly amendment that the policy’s implementation be reviewed each July. Administration and teachers’ representatives described extensive collaborative drafting; the rule allocates weekly non‑instructional minutes and provides examples of allowable uses (planning, collaboration, professional duties).

Health insurance and retiree underwriting

Brown & Brown presented UnitedHealthcare renewal options. The blended renewal shown was a 9.9% increase districtwide; underwriters reported that, if separated, active employees’ renewal experience could be priced at an 8.5% increase while pre‑65 retirees could face a much larger increase (27.9%) because of their higher loss ratio. The board approved the IRS‑required deductible adjustment to maintain Health Savings Account eligibility and later approved separate underwriting for pre‑65 retirees, a move administration estimates will reduce district premium expense by about $680,000 (roughly $566,000 net to operating funds after employee contributions).

Operational referendum: board directs continued planning

Administration presented an early budget outlook for fiscal year starting July 1 showing constrained revenue growth (a projected $2.6M revenue increase offset by enrollment decline and other categorical losses) versus roughly $11M in projected expense increases tied to curriculum adoptions, transportation contract escalation, salary schedule movements and ongoing structural deficits. In that context the board voted to direct administration to continue work on a potential operational referendum for November and to return with more detailed plans and messaging. Board members noted community resistance to last year’s referendum attempt and emphasized the need for robust outreach and clear budgeting before a public ask.

Other board actions

The board approved curricular adoptions (science and social studies materials), accepted donations and adopted a resolution recognizing Mental Health Awareness Month.

What’s next: administration will publish the loan notice required by statute, move forward on contract steps for secured entrances and return to the board with referendum planning materials and outreach recommendations.