Schools

Elmbrook Schools: 2011-12 Deficit Could Hit $3.8M

Increased employee health and pension payments diminish but won't eliminate looming deficit.

The Elmbrook School District could face a $3.8 million deficit next year--the equivalent of 51 teachers-- even with increased employee payments toward health and pension costs, the school board learned Tuesday. 

Although $3.8 million is the equivalent of 51 teaching positions, Keith Brightman, assistant superintendent for finance, stopped short of saying the district would need to lay off that many teachers.

Elmbrook already faces a $2.7 million deficit for the 2011-12 school year, Brightman said, before the governor unveiled his budget proposal that cuts school aid and imposes revenue caps for public school districts. 

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Elmbrook would lose $5.4 million under the proposed budget cuts, primarily due to Gov. Scott Walker's plan to lower school districts' revenue caps by 5.5 percent. The caps are the maximum amount of revenue districts can collect, which in Elmbrook's case is primarily through property tax revenue since it receives little state aid.

The $5.4 million loss in revenue--coupled with the $2.7 million projected deficit-- translates into a total 2011-12 deficit of $8.1 million, Brightman said.

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 The deficit figure drops to $3.8 million due to a projected $4.3 million in savings under the governor's proposal to cap public employee wages and to have public employees pay more toward their pensions and health benefits.

Under the budget proposal, public employees, including teachers, would pay an additional 5.8 percent toward their pensions and 12.6 percent of their health care premiums. Wage increases would be capped at the consumer price index, currently about 1.5 percent.

The district and the teachers union reached an agreement to delay issuing layoff notices until as late as April 8, to see if there are changes in the budget proposal that would affect the district.

The School Board approved 2011-12 contracts for 488 teachers and three nurses. 

Unlike past years, salaries were excluded due to uncertainties surrounding collective bargaining. Brightman added that there are reports that the governor's office was negotiating possible changes that could include lifting the CPI cap on wage increases.

"My goal is to retain teachers. For me, I think that's my No. 1 priority," said board member Glen Allgaier.

Christine Hedstrom, assistant superintendent for human resources, said she is trying to calm fears among teachers, some of whom may opt to retire before they're ready due to uncertainties with the state budget.  About two dozen teachers have asked to retire, compared to about 15 last year, she said.

Some teachers filed retirement requests after Feb. 1, the typical notification timeframe, which Hedstrom said indicates that they "really didn't decide to retire until after the turmoil with the state budget."

Hedstrom said there was fear the district would not renew contracts with the oldest teachers, but that was not administrators' intent. The nine teachers whose retirements were approved Tuesday represent a combined 266 years of service, said board member Bob Ziegler. 

Hedstrom said she has met with teachers who might be subject to layoff notices to answer questions as best she can. She said Elmbrook has to balance revenues and expenses without hurting its educational programs and class sizes, adding that the district also is "committed to fair compensation, and we want to make sure our employees are taken care of as well."

The district's educational services department administrators delivered cookies in recent days to all 11 schools as a way to boost morale, Eileen Depka, assistant superintendent for educational services, said in an interview.

"It was just to say thanks for everything they're doing," she said.

The board's finance and operations committee will review the state budget impact in greater detail Monday. The district also will hold three listening sessions on Elmbrook's 2011-12 budget options on March 17,  at 9 a.m., 4 p.m. and 7 p.m., at the district offices, 13780 Hope Street.


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