SHAWANO, WI-Recent financial analysis has delivered promising news to Shawano District taxpayers, as it unveiled a $2.6 million surplus in the 2022-23 budget. This surplus comes as a surprise, as earlier projections had suggested a looming deficit, raising the possibility of an operating referendum in April 2024.
The initial forecast for the 2022-23 school year predicted a substantial budget deficit, mainly due to declining enrollment patterns. To address this challenge, district administrators swiftly implemented a series of cost-cutting measures, including budget reductions across various sectors. Additionally, 16 full-time positions were left vacant in response to these reductions. Despite these efforts, a budget deficit was still anticipated at the beginning of the school year.
In light of the potential deficit, officials contemplated holding an operating referendum in April 2024, which, if approved by voters, would have allowed the district to surpass state-set revenue caps.
However, the combination of budget reductions, unfilled staff positions, and increased savings initiatives, coupled with an uptick in state and federal funding, led to the unexpected budget surplus, as confirmed by Superintendent Kurt Krizan.
Krizan expressed satisfaction with the surplus, emphasizing its positive impact on district residents’ tax burdens. He stated, “We are pleased that our cost-cutting measures resulted in this surplus and contributed to tax reductions for many District residents. We believe we have been responsible stewards of taxpayers’ money.”
Moving forward, the Board of Education will explore various options for allocating the surplus, with a particular focus on addressing deferred maintenance needs within the district.
While the district’s operating budget has stabilized, attention is now shifting toward addressing significant infrastructure requirements and building improvements. Shawano District is considering the possibility of a capital referendum in the coming year, with a projected range of $70 million to $110 million. This referendum would play a crucial role in meeting critical building maintenance needs.
Krizan underlined the importance of community input in this process, stating, “The cost of those needs exceeds the budget surplus and can only be addressed through a capital referendum. That’s why it is essential for the community to participate in the survey scheduled for early October. The results will provide valuable insights into the community’s priorities for a capital referendum.”
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