By CHRIS RANDAZZO
of The Gazette
Local taxpayers will get a break from the parade of school referendums this year.
The Stevens Point Area Public School District Board voted on Monday, Aug. 26, to make cuts and use up to $1.5 million of the district's cash reserves to deal with its projected $3.6 million deficit rather than go to referendum in November.
Not all board members think it's a good idea. "I don't think it's an appropriate use of fund balance," said board member Elmer Fournier. "I think it should be saved for an emergency not for day-to-day operations."
Board member Mary Thurmeir also voted against the motion, which passed 6-2, to use the district's cash reserves for daily operations.
At its August meeting the district's finance committee had recommended to the board that it go to referendum in November, with the provision that the amount of the referendum not raise the district's property tax rate.
However, the board tabled the recommendation at its first meeting in August to give the district's management team, which included Superintendent David Shuler, all school principals and members of the superintendent's cabinet, the chance to discuss a proposed referendum with administration and to give the business office the time it needed to put together projections for next year.
According to a memo sent to the board from the management team, it determined that going to referendum was not the best course of action.
The memo details a number of reasons not to go to referendum, including a lack of time to inform the public about it, the fact that the board has not had discussions regarding specific cuts (making it hard to convince the public to support it), questions regarding the state's budget and its continued support of public schools and that the district is currently in the middle of developing a strategic plan.
The memo says a referendum could include commitments for the 2003-2004 school year which disagree with the strategic plan.
Board President Diana McGinley said that the strategic plan the district currently has is an "inactive plan" and that the district decided more than a year ago that a new plan is needed. Former Superintendent Emery Babcock had previously assigned members of school administration to review the plan, but the long-range planning committee decided a few months ago that a new plan is needed.
The district is currently involved in recruiting members for the new strategic planning committee and hopes that it would have a plan ready for board review this time next year.
The plan would address a variety of long-range district priorities including curriculum, development, facilities, current and future needs and financing.
Shuler said that 99.9 percent of the time he believes it is a bad decision to take money out of cash reserves but in this case it is appropriate. The Finance Committee agreed, approving the management team's recommendation prior to the regular board meeting.
"All things considered, this is a reasonable way to go," board member Mike O'Meara said.
Shuler pointed out that even after spending the $1.5 million, the district would still have enough in cash reserves. He said the district's financial experts suggest a 15 to 20 percent cash reserve. Currently, the cash reserve is at approximately 17 percent, Shuler said, and after spending the $1.5 million it will be at 15 percent.
Fournier still thinks it's a bad idea. "Fifteen percent is the absolute minimum. We shouldn't be operating at the bottom of the checkbook," he said "We should continually have a balanced budget and this is a time to make hard decisions. Delaying the decisions won't make them any easier."
However, Fournier added since the board has made the decision that he will support it fully.
The management memo says that the projected property tax rate for the 2003-2004 school year would be the lowest in at least the last 20 years, illustrating that the district understands that the community has been impacted by the sluggish economy.