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No surprises in school budget, but referendum looms

Tamira Madsen  —  5/10/2008 6:43 pm

Facing a possible referendum and $9.2 million hole for the 2009-10 school year, no major alterations are anticipated to the school 2008-09 budget that will be finalized Monday by Madison School Board members.

When new superintendent Dan Nerad starts in July, referendum discussion will come to the forefront for the Madison Metropolitan School District. If Board members decide to propose a referendum, which could occur as early as November, they will request taxpayers consider overriding state-imposed revenue gaps so that services and programs won't have to be severely slashed from the district's budget.

In the meantime, only one administrative amendment and two Board amendments are on the agenda and approval is expected at the School Board meeting as superintendent Art Rainwater presents plans for the final budget of his tenure. Rainwater, who has worked with the district for 14 years -- including the last 10 as superintendent -- will retire this summer. Nerad will take over on July 1.

School Board members are well aware of the multi-million budget cuts looming for the 2009-10 school year, and Rainwater said he wasn't surprised with short list of amendments.

"I think the overall intention for the Board from day one was really and truly to work to preserve exactly what we have," Rainwater said during a telephone interview Friday.

"You don't want to start adding (services) back or changing things. Because the next year if the referendum doesn't pass, you're just placed with having to take (services) back out."

For the first time in 14 years, the projection for the budget is positive because services will not have to be reduced from the preceding school year's budget. It was announced last month that the district would benefit from a one-time, $5.7 million tax incremental financing district windfall from the city.

Three successful incremental financing districts, also known as urban development areas, were closed in Madison, allowing the school district, Dane County and Madison Area Technical College the opportunity to profit.

The windfall was the result of property development in the district surpassing expectations. When property taxes are increased following new development in a tax incremental financing district, those taxes then are used to pay off investments such as street construction. Upon closure of the district, property taxes go back on the standard tax rolls.

The budget process for the 2008-09 school year will be relatively calm compared to last year, and that's perfectly fine with Madison School Board President Arlene Silveira.

The Board considered closing a handful of schools in an effort to balance the 2007-08 budget, but opted instead to increase class sizes and increase fees for participation in athletics and extracurricular activities, among its cost-saving initiatives.

"In the future, anything we're going to have to do next year when we look to fill the $9.2 million gap, we're going to have to go to referendum," Silveira said.

She expressed relief that as the district prepares to welcome Dan Nerad as the new superintendent and two new board members, "We didn't have the contentious budget process that we had last year."

Meanwhile, the proposed board amendments include: a technology increase of $100,000 to purchase instructional computers and a $60,000 tax levy to continue the Even Start Literacy program for low-income pre-school children at Lakeview/Northport. The final amendment brought forth by the administration will not effect school services and is an accounting measure relating to the tax levy for a Madison School Community Recreation retirement fund.

Tamira Madsen  —  5/10/2008 6:43 pm