Goody County Education District director warns 5RO enrollment drop leaves Kenyon-Wanamingo facing a budget shock

Sherry Johnson, executive director of the Goody County Education District, told the Kenyon‑Wanamingo School Board that the shared online program known as 5RO experienced an unexpected, district‑level withdrawal that sharply reduced participating students and revenue.

"We currently have 92. So we've seen a 72.3 drop that we had not anticipated," Johnson said, describing the program's decline from 332 part‑time secondary students last year to 92 this year. She explained the state's open‑enrollment rules for online courses allowed some districts to assign their own staff to provide online instruction rather than enroll with the collaborative program.

Johnson gave concrete revenue figures tied to Kenyon‑Wanamingo's participation: last year students attending 5RO generated $154,743.77 in general‑education revenue for the district (the board kept approximately $86,179.32 after invoicing). For the current year she projected the enrolled students would generate about $85,737.27, with an invoice to the district around $63,654.65 — a substantially smaller net return.

Board members pressed for accountability and contingency protections. One member asked whether the district could require partners to notify GCED by a fixed date to avoid mid‑cycle departures; Johnson and staff said the statute permits families and districts to choose online options within a statutory window, and there is limited contractual ability to prevent a district's choice.

The board discussed operational responses, including whether to bring the district's roughly 12 5RO students back in‑house for second semester, reassign staff, or hire for critical licensure areas. Board members emphasized the need to avoid cuts that would harm specialized services that GCED provides to multiple districts.

Finance staff said the revenue shock will require a revised budget and that the district will return with a plan and spreadsheets showing second‑semester cost options. "We are in survival mode at this time," a board member said during the discussion, noting the district's limited fund balance and an estimated immediate budget shortfall.

The board directed staff to produce a cost analysis and recommendations for the next meeting, including whether to retain the 12 students in 5RO, create an in‑district online offering for second semester, or pursue other cost savings. Johnson said she would continue to work with member superintendents and provide options for the board to weigh.