7Q

Editor’s note: 7Q is a new feature the Leader will do on an intermittent basis with area newsmakers. This week we feature Louise Fischer, Shawano School District business manager, who has been working with administrators and the School Board to develop the 2014-15 budget.

Q The Leader erroneously reported the district was planning $10 million in capital projects, including $5 million on asphalt work, in the 2014-15 budget. That list was actually the district’s long-term wish list. Are any of the projects in the $10 million list of capital projects part of the 2014-15 budget? If so, which ones are high priority?

A At this time, the only projects included in the 2014-15 preliminary budget are $25,000 toward district security cameras, $50,000 to install keyless entry at the high school and middle school, $113,000 toward curriculum and $287,000 to replace the district server. The Finance Committee also designated $10,000 toward an engineering study to replace the middle school HVAC system and $3,000 to have a consultant look at all district asphalt to ultimately devise a long-range plan.

Q You speak primarily of the levy for the general fund. How does that differ from the overall levy, what are the proposed numbers, and is the general fund levy or overall levy more meaningful to taxpayers?

A Although the general fund levy comprises the majority of the overall levy, the final mill rate is determined by the overall levy. The overall levy also includes referendum debt and Fund 80 - community service.

Q What would cause the proposed tax rate to increase or decrease?

A The current proposed mill rate is $10.34. It can increase or decrease between now and October based on equalized value, Shawano shared costs, other districts’ shared costs, if the board of education opts for a different levy or a substantial deviation from the estimated enrollment.

Q How much of a change usually occurs?

A In a normal economy with stable land values, it would be easier to predict mill rate. However, as the recession seems to have a slower recovery in this area (and the subsequent property values), it is difficult to predict what the mill rate will be. As in many other areas of the state, agricultural land has a significantly increasing value than housing, so again it is hard to predict the equalized value. I had a couple of scenarios on my PowerPoint if land values stayed the same or declined 2 percent or 4 percent. We will know the exact amount in October.

Q A citizen at one of the budget meetings suggested a frugal mindset for the budget. How has being frugal impacted the district, and how would it impact the district in the future?

A A district always wants to be good stewards of the financial resources of the district.

Q How many years has the district opted not to assess the maximum levy available under law?

A Including 2014-15, which is not official until October, the district has underlevied the last five years.

Q How has that approach affected the district?

A Shawano Schools is very fortunate to have a stable student population — the dips and increases in enrollment are minimal and not sustained. SSD also is very fortunate to have a revenue source in open enrollment students, which nets approximately $500,000 each year. This means more nonresident students are coming to our school vs. resident students attending other districts. This revenue, in part, has allowed the BOE (board of education) not to levy the maximum levy allowed. Normally, not spending money can affect a district’s future equalized aid amount. It would be difficult to determine the exact impact on Shawano as the aid lost would depend on past state budgets, shared costs incurred by Shawano and other school districts, and other factors determined at the state level. If Shawano had continuous declining enrollment where revenue limits and state aid are both affected by membership, there would be a negative impact by not levying the allowable maximum for revenue limit and equalized aid purposes. This is not the case currently.