Budget presenter outlines proposed 7.3% levy increase as enrollment declines in district residents

The Elkhorn Area School District’s finance presentation on July 13 outlined a proposed total tax levy of roughly $26.6 million, which the presenter said represents about a 7.3% increase over the prior year. Earl, who led the budget review, told the board the district has approximately 3,500 students in total and that open-enrollment transfers offset a decline in resident enrollment.

Earl said the district’s revenue depends mainly on the local tax levy and state equalization aid, and noted a recent $1,500,000 change in equalization aid that affected the levy. “When our equalization aid changes,” he said, “that increased our tax levy by that much.” He explained higher property equalized value per shrinking student counts makes the district appear more property rich per student, which reduces some state aid.

The presenter listed proposed reductions intended to close a budget gap, including about $1.5 million in cost reductions, elementary position reductions aligned with attrition, a spousal-insurance carve-out and a switch to an ICRA health-insurance model projected to save about $350,000 this year. He also described a $400,000 market salary adjustment this year and said the district still faces an estimated $400,000 revenue-to-expense shortfall.

Earl offered specific program and cost numbers: a reading program cost of about $150,000, an increase to the maintenance budget, and an open-enrollment transfer amount expected to be $11,030 per student this year. The presentation noted the district’s projected mill rate figure could shift after the final equalized valuation is released.

Next steps: the board discussed the levy projections and moved forward with formal motions later in the meeting to set levy figures and approve routine financial items.