Wausaukee Board Approves Resolution To Dissolve District

After 600 Petition

Signatures, Slates

August Referendum



Wausaukee School District residents have turned in petitions with over 600 signatures asking the school board to try again for approval of a referendum that would allow them to exceed state-imposed levy limits and keep their school open and in the black.

At a special meeting at 7 p.m. Tuesday, July 1, the board, in response to petitions signed over the weekend, agreed to once again take school funding to the polls. It will be the third time this year.

They unanimously approved a motion authorizing District Administrator Jan Dooley to work with school legal counsel on wording for the next referendum, and decided it should be held on Tuesday, Aug. 19. This time they will seek $675,000 a year over the revenue limit each year for the next 10 years.

Dooley explained in a telephone interview Wednesday morning that $675,000 is the amount paid each year on the building debt, which will be paid off in April of 2011, so at that time the the tax levy impact of the referendum will be offset by the decrease in taxes from the building being paid off. Impact if there is no change in district equalized values will be $1.02 per $1,000 in additional taxes per year, or $102 on a property assessed at $100,000.

Meanwhile, the board will continue taking the steps necessary for dissolution of the district effective on July 1, 2009 in case the referendum again is voted down. She said to continue beyond that with a negative fund balance would be fiscally irresponsible, and could lead to difficulties in obtaining the short term loans they will need to keep operating, and high interest rates on funds they would be able to borrow.

Dooley said nothing binds the board to levy the entire $675,000 over-limit amount each year just because it is approved, and she believes if funding changes or for some other reason the extra money is not needed, the board will not levy it. “We have a very conservative board,” she said. “We want to recreate the district in a way that is good for kids and affordable for our taxpayers.”

Plans and wording of the referendum resolutions are to be formally approved at a meeting at 7 p.m. Thursday, July 3 in the school media center/library.

By state law the referendum cannot be held less than 45 days after the last referendum attempt, which makes mid-August the earliest possible date. The board wants to be sure the issue is settled so school can re-open in fall without the current uncertainty. Dooley is hopeful once questions on the future of the district are answered some of the 60 plus students currently slated to leave under open enrollment will decide to stay in the district.

Voters on Tuesday, June 24 by a narrow 19-vote margin defeated a referendum that would have allowed the board to levy taxes sufficient to support the budget they feel is necessary for satisfactory education of Wausaukee students. It would have raised the levy by $575,000 next year, approximately 86 cents of equalized value. Official canvass placed the vote at 544 in favor of the referendum and 563 opposed, for a total of 1,107 votes in a district with approximately 5,550 residents. Enrollment is slightly over 600 students.

In February, voters resoundingly defeated a motion that would have allowed $4.25 million over the levy limit over a 4-year period, $1.25 million the first year and $1 million for each of the succeeding three years. Subsequently teaching staff accepted a 2-year wage freeze and agreed to contribute to health insurance premiums, and the board reorganized teaching assignments to eliminate nearly a dozen positions.

Those changes allowed the reduced referendum request, but it was apparently not enough and the proposal was again rejected.

As a result of the second referendum defeat, the board, at a meeting Thursday, June 26, voted unanimously in favor of a resolution that could be the first step in dissolving the district effective July 1, 2009. The vote came despite impassioned pleas from an audience of nearly 100 to keep the school open. Each board member expressed regret at having to cast the vote in favor of closing the school, but said they had no choice.

In response to pleas from the audience, board members and Dooley informally said if they received petitions with 600 or more signatures as an expression of community support, they would hold another referendum. By state law, another referendum vote can be scheduled not less than 45 days after the failed referendum

Petitions with more than 600 signatures were turned in to the school office on Monday, June 30 and the Tuesday, July 1 and Thursday, July 3 meetings were scheduled. Circulators indicate the drive for signatures will continue even though the goal suggested by the board as an indication of community support has been reached.

During the public comment period at the start of what was a regular monthly board meeting speakers attempted to question the board but were told there could be no exchange. “What’s the point of this meeting? Why are you not answering questions? What can the community do to help?” were among a barrage of questions from the audience.

Board President Dennis “Griz” Taylor explained the board must observe the meeting agenda, which allows citizen input but no exchange of comments.

“If you have questions, please stay until after the meeting and we’ll answer them,” he promised.

The agenda included approval of a resolution to consider dissolution of Wausaukee School District effective July 9, 2009, in accord with Wisconsin statutes.

“They do not have to close the school tonight,” declared a speaker from the audience, who said she had checked with the state Department of Public Instruction. “We can close with a negative balance...We want to work with the community...We want to keep our school open.”

Tammy Schlies explained how hard the uncertainty has been on her children. “Every day they come home saying, ‘Mom, the school’s going to close.’ The kids are living with this day in and day out. She said her children attend school at Wausaukee under Open Enrollment, and since she and her family are not district residents they cannot vote on the referendums that mean so much to them. School at Wausaukee is a long-standing family tradition.

Discussion halted until after the meeting, and the board continued with regular business.

Dooley commented that despite dealing with the complexities of the fiscal situation, they also need to deal with day to day operation of the school. They need to hire teachers for science and music, and she was pleased to report there have been some quality applicants who were “very much aware of where we stand.” Interviews and the hiring process are under way.

The custodial staff is busy converting a classroom back into the science lab it used to be. Dooley commented downsizing of the staff has given them some flexibility in use of classrooms.

Retirement of custodian Mary Kay Aubrey was accepted with regret.

Regular meetings for July will be held on Tuesday, July 8 and Wednesday, July 23. Finance Committee members Elmer Busick, Ken Jones and Dave Kipp will meet in the near future to discuss short term borrowing, and Personnel Committee consisting of Taylor, Busick and Farrell Maule will meet for contract discussions.

Jim Keyzers told the board about a problem with the building’s chill system. Seals blew on both compressors and all refrigerants were lost. He said they replaced the seals and the units would not start. He thinks it may have been caused by a lightning strike, and they are trying to get the school’s insurance carrier to cover the damages under catastrophic mechanical failure due to natural causes provisions. Replacing the refrigerant cost $8,200. One of the compressors is running now, but it is under strain. A new compressor will cost about $17,000.

Dooley provided the board with background information on the SAGE program, through which school districts get extra aid money in return for keeping student/teacher ratios below 15 to one through third grade. She said they had a 1-year waiver last year, but to keep the funding for 2008-2009 they would have to comply with the requirements. There will be no waiver. SAGE revenue now is $164,000 for the year, but cost of hiring the three additional teachers they will need for full compliance will be at least $171,000 and they would need to do some additional hiring to keep the 45-minute prep time for teachers. Some special instructors, for example the high school music teacher, have taken on additional duties and will not be available to fill in for the prep time.

“If we let go of SAGE we can’t get it back,” Dooley said, “But SAGE isn’t paying for itself.” She said she has always been an advocate of SAGE, but it is using district dollars to keep it operating. They needed to let DPI know by June 30.

Currently there are 30 students in 5-year kindergarten, which does allow the 15 to one ratio, but staying in SAGE would mean they would need to hire another teacher if another student moved into the district.

There are 47 First Grade students divided into two classes, one with 23 students, the other with 24. SAGE would require hiring another teacher there, and also in Second Grade, where there are currently two classes with 20 students each, and Third Grade, where the 38 students are divided into two classes with 19 students each.

“Much as I like SAGE, I don’t see how we can keep it with our current finances,” Taylor commented.

Jones moved to keep SAGE. There was no second but the board voted anyway, and the motion was defeated. Jones cast the only vote in favor. Ken Limberg, Busick, Joe Lanish and Kipp voted against.

Next came action on the resolution board members obviously dreaded, the formal declaration that they are considering dissolution of the school district.

“If we start down that path....,” Busick hesitated.

“There’s not a board member here that wants to see the school closed,” Taylor declared. “We worked very, very hard to get concessions, to make cuts, but we’re at the point where we won’t cut any more.” He said if they got enough signatures on a petition they would have another referendum, and added, “I don‘t believe voting to start the dissolution process means the school will close.” He expressed disappointment that only 35 people had turned out for the Wausaukee informational meeting on the referendum, and that included board members and staff. “We have no options...We can’t run the thing without money...the choice is with the community...That’s where we’re at....That’s the bottom line!”

“We’re in a deficit now, we’re going to be in a deficit next year,” Kipp declared. He said it would be fiscally irresponsible to continue with no way to pay the bills. “The public has to decide whether or not you want the school to remain open,” Kipp declared. “If there is a petition, if there is another referendum, we need you to come out and vote yes!”

“If we’re not going to be responsible as a community to run this school, then we have to let other schools do it,” Jones said. “We need to keep the quality of education high and we’ve gone as far with cutting as we can go.”

“I’m totally shocked at the voters of Silver Cliff,” declared Maule. “What more can the teachers do? They took a two-year pay freeze and agreed to pay for part of their benefits. That’s unheard of!”

Lanish expressed disappointment at the small turnout for the informational meetings held throughout the district. Busick expressed disappointment at the small number of people who came out to vote.

“It will kill me to vote to close the district, but as treasurer of this district I must be fiscally responsible,” declared Kipp as he moved to do exactly that. All board members sadly voted in favor.

The board promptly went into closed session to discuss the transportation coordinator position, administrative and non union support staff contracts, AFSCME arbitration and insurance language in the AFSCME contract. Taylor promised it would be brief, and said immediately after adjournment he would name board members, but not a quorum, to stay with him after the meeting and answer questions from the audience.

The audience filed out into the hallway and continued discussions in quiet groups until the doors reopened at 8 p.m. Taylor announced no action was taken in closed session and the meeting adjourned.

He, Kipp and Limberg remained to answer questions. “We’ll stay as long as we need to and answer questions, as long as it’s done in an orderly fashion,” Taylor pledged. Other board members were asked to leave so there would be no quorum and therefore no violation of the open meetings laws, and the questions began. Dooley also was on hand for the discussion.

Mike Gavigan asked what they would need to do to get another petition. Taylor said if the people started a petition and got 600 signatures he would recommend another referendum. “The sooner the better,” he added. He said he could not make a statement as a board member, but as a private citizen he hoped that would happen.

Someone in the audience offered to meet with legal counsel and get something put together, “hopefully this weekend.”

Dooley said a petition doesn’t have to be “a terribly legal document”, since it is advisory, but the board wants assurance that the people want this.

Taylor noted no matter how soon the petitions would come in the board needs to have a 45-day notice for the referendum. He also said they need to have it before school starts, or they will start losing kids to more stable districts. He recommended they not only get signatures on the petitions, but phone numbers as well so signers can be reminded to get out and vote. Kipp said they should also get e-mail addresses for contact purposes.

“Should you get the petitions, where are you going to be financially?” another speaker wanted to know. “Will there be another referendum next year, and another one the next year?”

Taylor replied the school will be paid for in 2 1/2 years, and believed if a referendum passes now taxes will go back down at that time. He said there will be more retirements for the next few years, meaning more staff at the top of the salary scale will be replaced by new ones at lower pay, and the concessions given by staff will also help. “It won’t be stable forever,” he admitted, but predicted it will be stable for some years into the future.

Dooley said the board would need to discuss whether they go again for a 1-year referendum with the possibility of having to do it again next year, or if they should ask for a longer term solution.

To questions as to how the district had gotten into this situation, Taylor said the district had been operating in a deficit every year for the past 8 or 9 years. Now all the reserves are gone. He admitted mistakes have been made, but said a basic problem that will not go away unless there are some changes in the state formula is that the state imposes a 2.7 percent cap on revenue increases, and then sets the QEO (qualified economic offer) at 3.5 percent. In a district with declining enrollment that creates an impossible situation.

“In my opinion, you overdid, you overspent, and it was poor management,” declared a lady in the audience.

Taylor responded, “I can’t fix what happened seven years ago, but I think we’ve done pretty well in the last 2 1/2 years.” He said they had hit very hard at the budget. The staff now pays part of its own health insurance. One administrative position has been eliminated. Teaching and extra curricular positions have been eliminated. By offering incentives to get older teachers to retire the board saved over $100,000 a year in unemployment costs and other corresponding savings.

To other criticisms, Kipp agreed this discussion should have been held five years ago, but commented sometimes it takes a crisis to make things happen. He wondered if the cuts the board had made now would have been accepted in less of a crisis situation, and declared, “This is an opportunity to get this righted now, so we don’t need to keep coming back for more money.”

Questioned on why so much money had been sought in the February referendum as compared to the most recent one, Dooley mentioned the staff salary freeze. “What our staff chose to do was huge,” she declared. “It’s a rarity in Wisconsin to see teachers take a two year salary freeze.”

To suggestions they should find more ways to cut, Dooley said they are at a point where more cuts will harm the educational program. “These kids deserve a quality education. They are our future,” Dooley declared. She said the board is between a rock and a hard place. They can either cut costs or raise revenue, but cutting more costs will mean cutting programs, and that would lead to students transferring to other districts, which would mean another drop in revenue.

Taylor said seven years ago the school was 60 percent state funded. Today that funding has dropped to 14.8 percent, caused by the drop in enrollment and rise in property values. “We have no control at all...that’s something we need to take up with the legislators,” he said.

Dooley said people come up from the city and are willing to pay high prices for properties. Not factored into the equation is that the district for the most part is income poor. The problem is that the districts that get say 78 percent funding don’t want to see the formula changed.

“I get it, but there are still some people who don’t,” commented one of the audience.

Comments from varous individuals in the audience included: “I would just like to have seen this sense of urgency a bit sooner!”, “Just 24 cents a day it would have cost everybody!”, and “Do you know how many kids would have gladly given 24 cents a day to keep their school open?”

To a question about what happens if Wausaukee is dissolved and apportioned to another district, Dooley explained once the boundaries change, the properties within it become part of the other district and pay whatever taxes they levy. Debts and assets of the Wausaukee district will be apportioned to the new districts along with the students. The red ink goes along.

Costs in that district could easily go up sharply to accommodate the new batch of students. Taylor said by law, the revenue limit of the new district is automatically increased by whatever amount the expenses go up, as determined by the State Superintendent. No referendum is required.

“Yes...that means the tax rate will go up without a referendum,” Kipp agreed.

“Our neighboring districts will be able to raise the tax rate without going to the taxpayers,” Dooley reiterated. She said no one knows how the district would be apportioned. That decision is made by a School District Boundary Appeals Board made up of seven people, two from a large school, two from a medium school and two from a small school, plus the State Superintendent of Schools (Elizabeth Burmeister) or her designee.

There were comments about the unpleasant consequences of dissolution, to Wausaukee residents and to residents of neighboring school districts.

“You have to get the message to those retired people up there that their taxes are going to go up regardless,” Kipp repeated.

Taylor said at the meetings held all over the district lots of people wanted them to have 40 and 50 kids in a class, but if that happened the kids would start being sent somewhere else.

To questions about salaries of Wausaukee teachers, Taylor said that’s public information anyone can see by coming to the office. Copies of the full detailed budget may also be viewed there.

“If we can get through this, Wausaukee will be stronger than any other district in the area,” Kipp commented. They have made cuts that will keep the district healthy. He said for example Wausaukee retirees have paid insurance for only three years, compared to 10 years in some districts.

John Guarisco commented the concessions are huge, considering that salaries and benefits comprise 80 percent of the budget. “I think what the board has accomplished is unprecedented,” Guarisco declared.

Taylor agreed, “At 80 percent of the budget, when you get a two-year wage freeze and they pay some of the benefits, you’ve gone a long way toward a permanent fix.”

“We need to get information to the public,” another person declared. What is the long range plan? Where are we going?”

There was a request that a board member be assigned to meet regularly with a community group, to keep the lines of communication open. Taylor said they only need to call him or Dooley, and they will keep the lines open.

Guarisco attributed small turnout at the town meetings to “a certain amount of distrust...they don’t necessarily trust what you’re selling.” He felt perhaps smaller, more informal meetings would be better.

Asked why steps taken now had not been taken sooner, before the situation became so desperate, Taylor asked, “What do you think the odds of the district getting concessions would have been seven years ago when we had a million dollars in the bank?”

Dean Wheelock introduced himself as a former Wausaukee teacher, a lifelong area resident whose family had lived here since 1892, and a current resident of Silver Cliff. He said he did come to some of the meetings, and at them he heard if the current referendum was approved they would be back in a year so to ask for more money. He said his property taxes had gone up 70 percent last year. “If you could show me a long term plan that you’re going to be fiscally responsible, I could support a referendum,” he said.

Taylor replied they could not make promises for a future board.

Dooley said as they look to the future they will continue looking at ways to downsize personnel “without hurting the education of our students,” but she also asked, “Is it fair to ask our teachers to take less than teachers in other schools?”

“We gave them what they were asking for (cutbacks). What more do they want?” asked Kipp.

Rose Wallace wanted to be sure there is ample publicity given to the rule governing dissolution of school districts and authority of the assigned boards to raise the levy enough to cover whatever new costs their districts encounter without a referendum. “All those districts that will take us in ought to be scared to death!” she declared.

Someone commented that the 650 people in this district who cannot vote (the students) are the ones who stand to lose the most.

“Our taxes are going up regardless,” declared Guarisco. “The only thing we’re doing by defeating this referendum is, next year, maybe you’ll have to go to a school board in Wabeno and ask them, ‘What is your long range plan?’ We need to keep control here!”

Someone in the audience said the last school district in Wisconsin that closed was in the 1980’s. She said the DPI had told her schools up here will have to get creative with their financing. She believed there were other things to explore, such as a 4-day school week and a 7 hour day instead of block scheduling.

Taylor said the 7-period school day is a negotiated item that cannot be changed by the board. As to the 4-day week proposal, he asked how many parents want their kids to be putting in 12-hour days. Stephenson tried it and they are going back to a normal schedule because they are losing enrollment, he said.

A Silver Cliff parent said her children now get on the bus at 7:15 a.m. and get off at 4 p.m.

Dooley said some now get on the bus at 6:30 a.m. and don’t get home until 5:30 p.m.

Taylor said in any case they would save only bussing costs.

There was brief discussion on how many children from Silver Cliff now ride the school busses, and why there are two busses.

Asked about going to private contract bussing, Dooley said the board has been working on that possibility for a year and a half. (There is an unsettled disagreement over that issue in the non-professional labor contract.)

Questioned on the student/teacher ratio, Dooley said the average elementary ratio is 20 students per teacher, but in Sixth Grade there is one teacher for 32 students.

Jerry Edlebeck noted the school buildings will be paid off in 2 1/2 years, and asked who will take ownership then if the district has been dissolved.

Dooley said that remains to be decided. She said if the second resolution to dissolve the district passes the Boundaries Appeal Board will start in August with a visit to the Wausaukee school and schools in surrounding districts. Her guess was that most of the district would be attached to Crivitz and the school property would thus probably also go to them.