Two additional cuts were not recommended at this time: an employee wage freeze and district building closures.
FOND DU LAC – Fond du Lac School District students and employees will soon face budget cuts for the next school year.
The district referendum asking for authorization to exceed the revenue limit by $10 million per year for four years failed in the April 1 election. As a result, the district needed to find alternative ways to meet its funding needs.
The school district board April 14 unanimously approved five measures to reduce the deficit: changing the middle school schedule, changing the high school teacher schedule, reducing one of the staff benefits, scaling back contracted services and eliminating a number of positions.
A total of 83 positions will be eliminated, resulting in 27 employees getting laid off. Of those employees, 14 are teachers.
Here’s what to know about the incoming budget cuts.
With the failed referendum, school district budget deficits remain
The district has until June to approve a preliminary budget to have spending authority in the 2025-26 fiscal year, which starts July 1, and it faces a projected $7.5 million operational deficit for the year, according to an executive summary from Michael Gerlach, the district’s chief of finance and operations.
A deficit budget of about $5.5 million was previously approved for the 2024-25 year, covered by a one-time-only use of district fund balance reserves, but any additional reduction in that balance will increase the amount of fundingneeded to meet cash flow needs.
“Any further use of fund balance reserves for operational expenditures would be financially devastating to the district, both in the present and the future,” the executive summary reads.
While the district hoped the referendum would get approved and meet the necessary costs, district leaders have discussed their plan for months if the referendum were to fail.
First budget cut is changing middle school schedule
In a presentation for the board members, Fond du Lac School District Superintendent Jeffrey Fleig explained one of the changes will be to the schedule at the district’s middle schools.
Instead of a block schedule, students will have a six-period school day. Teachers will have five classes instead of three, increasing their teaching responsibilities, and they will get 59 minutes of prep time instead of about 86 minutes. However, 18 teaching positions will be eliminated.
This will save about $1.5 million for the district.
Second budget cut is changing high school teaching schedule
The high school will keep its eight class periods, but teachers will teach six of those periods rather than five, leaving them with 72 minutes of prep time.
This will eliminate 21 teaching positions and save more than $1.7 million for the district.
Third budget cut is reducing one employee benefit
The employee benefit that will be affected by the district changes is the “cash in lieu” benefit.
Currently, employees receive $6,000 annually if they don’t enroll in the district’s health insurance, an opt-out incentive 237 employees take.
This will be reduced to $3,000, saving the district $711,000.
Fourth budget cut is scaling back contracted services
The district will reduce contracted services with its partners, eliminating some entirely. This will have a negative impact on student learning and culture, Fleig said.
The total savings will be $591,314.
Fifth budget cut is eliminating additional positions
In addition to the teacher positions being eliminated with the middle and high school schedule changes, several other positions within the district will be lost.
This includes 12 custodial and maintenance positions; 15 secretary, instructional assistant and interpreter positions; two administrative positions; 14 additional teacher positions; and one specialized position.
The 83 total positions being eliminated only amounts to 27 layoffs because many of the affected employees can be moved through attrition into open positions and areas that are otherwise hard to fill, such as special education, depending on their certification, Fleig said.
“The administration spent many hours placing people into jobs that they were certified for,” Fleig said. “I believe we will be fully staffed come the fall for the first time. So this was also an opportunity for us to fully staff our positions that are hard to staff.”
Fleig added that more administrative positions weren’t on this list because they are under a two-year contract, while teachers are on a one-year contract. Those are the only two employee groups under contract.
This will save about $2.9 million for the district.
More drastic cuts were not recommended at this time
Fleig said none of the cuts should come as a surprise to anyone who attended a referendum information meeting. Two additional cuts were not recommended at this time: an employee wage freeze and district building closures.
However, these may be on the table in the future, especially the possibility for building closures.
The current cuts are to make up for the next year’s funds, since the district can’t pursue another referendum until next spring. However, Fleig said the future school board needs to have a contingency plan to close a building in case another referendum fails.
Public comments asked the board not to take action immediately
Prior to the budget discussion, those who spoke on the issue in public comment asked the board not to take action that night, as the community had only just gotten notice of what the cuts would be.
One speaker added the decision should wait until the three new board members took office, so they can have input.
Fond du Lac Education Association President Andy Brault was one of the speakers who urged to give the community more time to digest the information and provide feedback.
“I urge you to make decisions tonight that set this district up for success, especially if we plan to go back to the community with another referendum next April,” he said.
After the meeting, the FEA — though disappointed that the board moved forward with action — commended the board for choosing not to freeze wages or close buildings, and also for asking thoughtful questions about the reductions, according to a news release. It encouraged the board and incoming superintendent to reverse budget cuts when additional funding becomes available by restoring positions and reducing teacher workloads back down to their current levels.
The FEA also encouraged board members to follow member Mark Henschel and incoming Superintendent Matt Steinbarth’s lead in advocating for increased state funding and call for a fair and sustainable solution to Wisconsin’s school funding challenges.
Daphne Lemke is the Streetwise reporter for the Fond du Lac Reporter. Contact her at dlemke@gannett.com.