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Pecatonica board hears budget shortfall estimate and referendum spending update
Summary
Board finance presentation estimated a roughly $190,000 budget gap driven by lost extended-learning revenue and insurance cost increases; trustees reviewed referendum expenditures and learned that School Choice vouchers will redirect $45,936 of local tax dollars this year.
Board finance staff told the Pecatonica Area School District Board of Education that preliminary projections show the district may need to identify roughly $190,000 in budget reductions for the coming fiscal year.
Key drivers cited in the presentation include the loss of August extended-learning days because of the construction schedule—estimated to reduce revenue limit authority by $146,843—and known health-insurance increases (about 5% next year, with a further 6% the following year) plus a newly reported 7% rise in dental premiums. Administration estimated health insurance increases would add about $40,000 to district costs and combined pressures would contribute to the roughly $190,000 gap staff flagged for board consideration.
Finance staff also briefed the board on referendum funds and ongoing construction-related costs. As of Jan. 31 the presenter reported approximately $10.7 million originally in referendum-related accounts, $9,000,300 in invoices paid to date and roughly $3,000,000 remaining after accounting for contracts and projected upcoming payments for furniture, technology upgrades, a gym floor and site work.
The presentation included a note on IRS arbitrage rules tied to tax-exempt bond proceeds and an estimate of potential future rebate calculations should investment yields outpace the district's bond yield.
Separately, the board was told that, for the first time, Pecatonica residents will be affected by the Wisconsin School Choice voucher program: when students use state vouchers the aid follows the student and district taxpayers will fund the voucher amounts. The presenter said that Pecatonica taxpayers will pay about $45,936 toward School Choice this year even though the district budget itself does not increase.
Board members asked questions about possible responses — ranging from revisiting benefit costs to forming a finance ad-hoc committee — and noted uncertainty until the state budget and final property valuation and enrollment numbers are known.
