Friday, July 17, 2009

The State Budget Trickle-Down Effect Intensifies

School officials throughout the state probably feel as though they're standing under a waterfall by now.

Link to Wausau Daily Herald article, "Unexpected loss of state aid has district in $3.9 million hole".

Excerpt: Superintendent Steve Murley said Thursday that the state budget adopted June 25, coupled with other provisions in state law, leaves district leaders with no options but a substantial tax increase and program cuts.

District leaders will meet later this month to begin determining which activities to cut and exactly how much they will raise taxes to close the deficit. A 10 percent increase in school taxes -- any more likely would require a spending referendum -- would cost the owner of a $100,000 home about $92 more per year, a total of about $1,020.

"It's going to be difficult, if not impossible, for us to cut our way out of this aid loss for this school year," Murley said.

The cuts and tax increase are necessary because the state cut aid to Wausau by $2.6 million more than anticipated. And the district's hands are tied because under state law and contract terms, it cannot cut staff positions that consume 81 percent of its $100 million annual budget.

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