MONONA, Wis. — The Monona Grove School District in Dane County held a special school board meeting Thursday night to address a budget deficit that led to a near depletion of the district’s funds balance.
Jennifer Kelley is a parent of two students in the school district. She said she was stunned to hear that the district was in financial crisis and needed to take out a loan to solve it.
“The message is clear from the community, and I share the sentiment, that we are furious and we feel betrayed,” Kelley said. “We are really alarmed at what the board has been doing.”
According to district leaders, the Monona Grove School District has been operating in a deficit over the past three years.
Leaders said not only did the district overspend its budget, but they also delved into reserves to the point where there now isn’t enough cash flow to pay bills.
“We have never been in a situation as a school district where you have to hear at the meeting last night that if we cannot get this borrowing done, this emergency long term note done, the district can't open the doors,” Mike Mikalsen, a parent of two Monona Grove alumni, said.
Mikalsen said he’s especially outraged by the fact the district is in this position after voters approved a 2023 referendum to increase funding for operating expenses. He said he feels betrayed.
“They knew that their accounts, their, their books, their financial books were not balanced, and they lied to us,” Mikalsen said.
Thursday night, the board voted to borrow $7 million to help with the crisis. Starting next year, the district will have to pay back a little under $1 million each year.
Paying back the loan will take funding out of the district’s budget, which could affect things such as teacher salaries, utility bills for buildings and more.
“So where are those cuts going to come from?” Kelley said. “They have to come from the classroom. They're going to impact our children no matter what. So, there is a tremendous amount of fear of what those cuts will be.”
As for those cuts, Monona Grove School Board President Elizabeth Cook said, in part, “Getting the fund balance back in compliance with board policy will take time, requiring difficult decisions and an intentional effort to rebuild trust.”
The district also plans to have more community meetings to get feedback for the board. Some parents feel that change is still necessary.
“If you aren't reading your packet, if you aren't asking questions, if you don't know what you're doing, please get off the board and let other people, who will do the job, get onto the board so that we can have the high-quality school district that everybody wants,” Mikalsen said.
The school board released the following statement:
"A review of District finances by our new Superintendent and Assistant Superintendent has uncovered that the District has been operating in a deficit over the last three years and is nearing the depletion of its fund balance. Specifically, $7.9 million of fund balance has been utilized, leaving a balance of $2.5 million or about 4% of our operating budget.
"We are grateful for the public’s feedback. The Board sees last night’s meeting as the public’s initial opportunity to provide feedback to the Board. Additional opportunities for community feedback will be created as future plans come together, and some of these opportunities will be two-way communication [for example, town hall meetings] so that the community may interact with members of the School Board.
"Last night’s Board action on a resolution is just one step toward long-term fiscal health of the District. Getting the fund balance back in compliance with Board policy will take time, requiring difficult decisions and an intentional effort to rebuild trust. We are confident that we have the right leaders in place to successfully lead us through these challenging times and put us on the right path forward. Although this will have operational impacts as we plan for a sustainable future, our highest priority is and will always be ensuring a high-quality educational experience for our youth."