Janesville School District estimating $10 million shortfall
JANESVILLE Janesville School District officials said Friday they’re estimating a nearly $10 million shortfall in next year’s budget and layoffs and program cuts are needed to save money.
Superintendent Karen Schulte said an unknown number of layoffs were certain. She said cuts to extra-curricular activities and athletics also would be considered.
“We are looking at every budget line item, looking at where we can save money and where we need to cut,” Schulte said. “There is no budget line item that we’re not looking at.”
Schulte said the district also is seeking more revenue with advertising in gyms and naming rights to buildings. She said the district is open to any ideas to create revenue.
The $9.77 million in savings or revenue needed to balance the 2011-2012 budget is based on no increase in the tax levy and the same amount of state aid, Chief Financial Officer Keith Pennington said. The amount is a starting point in a budget process that will take several months.
“This is a preliminary estimate using the best information we have. Things could change,” Pennington said. “This is step one and two of maybe 35. You have to start, you have to have a number and you have to have a plan.”
Kim Ehrhardt, director of instruction, said the school board would consider Tuesday a change regarding high school scheduling and staffing guidelines. He said the change would allow the district to increase high school class size from 18 to 24 students.
Ehrhardt said the change would likely result in fewer teachers at the high schools. He said specifics about which classes or teachers would be affected wouldn’t be known until students register for next year.
District officials said they also would review staffing needs at the elementary schools, although those considerations wouldn’t be made until later because high school students register first.
The $9.77 million shortfall includes:
-- $1.79 million received this year to help districts retain employees because of a lack of school district funding. The money was used to pay for salaries. That money will not be available next year.
-- $2.27 million the district used this year from an account set aside for emergencies and other expenses. The money was used to balance the budget. The district is not planning to use money from that account next year, although it could.
-- $3.11 million in staff salary and benefit increases from this year to next year. The increase includes raises and retirement contributions.
-- $2.6 million for an increase in the cost of health insurance. The district is estimating a 15 percent increase in health insurance costs from this year to next year.
“If you listen to health insurance news, it (cost) continues to go up,” Pennington said. “It doesn’t go down.”
Schulte said the district has never wrestled with a budget gap in this range.
The school board recently cut a high school assistant principal position because of declining high school enrollments and budget needs. The move saves about $120,000 in salary and benefits.
If you go
The Janesville School Board meets at 6:30 p.m. Tuesday, Dec. 14, at the Parker High School small auditorium, room 1145.

Dec 14, 2010 at 11:55 a.m.
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MooShoo, you are correct. And yes, she did dig herself and the district into a hole. Seems to me that all she is interested in is firing teachers and administrators for what someone else said or so others can have a pay raise. It comes down to our children being what should be the focus, not how much she makes and how cushy her life is. JMO
Dec 14, 2010 at 10:19 a.m.
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How many classes at the high school are running with less than 24 student currently? Can anyone from the district share that information?
Dec 13, 2010 at 8:55 p.m.
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Again I say, why doesn't the school board use their taxing power? When they don't increase taxes, they loose state aide. Since they haven't raised taxes the past several years, we have lost millions in state aide!!!!! If the city can increase what we pay for trash, why can't the school board raise taxes? Are we ready to say that trash is more important than the kids? I mean seriously it would only be around $100 extra? If Beloit can do it, why not Janesville? I just don't get it. As for the Studer Survey, the district is no longer under studer, so it is costing no money.
Dec 13, 2010 at 8:27 p.m.
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This is what happens when citizens approve a referendum when the enrollment figures don't support it.
Dec 13, 2010 at 6:01 p.m.
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Well luvulvl when 85% of a schools expenses are salaries and benefits where do you expect them to cut? You can turn off the thermostats, cut all the admin salaries, and make fewer copies, it won't be enough. Salaries and benefits are the elephant in the room. I don't think tax payers are in the mood for increases after the beating most have taken the past year. That few extra dollars for more property taxes? They don't have it, if they even own their house anymore!
Dec 13, 2010 at 5:49 p.m.
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Will the full budget and detailed financial information be available to the public?
Dec 13, 2010 at 5:48 p.m.
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Leased buildings need to go. Cut the fluff. Institute a 10% decrease in salary for administrative (non-union) staff. Bring your own coffee and soda to work. Turn all of the thermostats down a few degrees. There are common sense ways that we as families cut back when we need to - apply the same principles to the District. Raising property taxes would affect each taxpayer by how much? How much money is in the "Fund 10" account? Cutting teachers is simply the fast & easy budget fix - let's think a little more and try a little harder.
Dec 13, 2010 at 4:28 p.m.
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huntfish, The status of the directors of special education and at-risk and multicultural programs is on the board's agenda for Tuesday night. Perhaps this is what you are referring to. Employees don't promote themselves or give themselves raises. The school board does that.
--Gazette reporter Frank Schultz
Dec 13, 2010 at 3:39 p.m.
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Why is there nothing in the paper about the two people downtown who stated they need to have "Director" in front of their name and then justified each of themselves getting $30,000 raises just recently. Public should know about this one.
Dec 13, 2010 at 2:47 p.m.
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Superintendent Schulte: Maybe you should talk with the school district you used to be employed at (Beloit Turner) as they seem to be thriving in regards to finances.
Dec 13, 2010 at 1:26 p.m.
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Moving from leased buildings is on the table. One thing to keep in mind is that budget items that do not affect classrooms directly have been the main target of cuts over the past several years. School admin, maybe you want to weigh in?
Also, please stand by for news from Tuesday night's board meeting, where, I would hope, we'll learn more.
Apologies for the mistake about high school class sizes. Thanks to posters who pointed that out. We'll have more about that soon, probably in Wednesday's paper.
-- Gazette reporter Frank Schultz
Dec 13, 2010 at 12:02 p.m.
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I agree, MikeF. Also cut Ehrhardts salary. What is going on in our school district? Ever since you know who took over, it is failing in every way, shape and form! I am glad my kids are grown but my grandkids attend Janesville schools. Some of these suggestions, such as moving the charter schools down to the ESC are excellent. But, guess what? You know who will not hear of it, be around kids all day, that would drive her nuttier than she already is! JMO
Dec 13, 2010 at 10:33 a.m.
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“We are looking at every budget line item, looking at where we can save money and where we need to cut,” Schulte said. “There is no budget line item that we’re not looking at.”
So we can expect an announcement that the superintendent's pay will be cut?
Dec 13, 2010 at 10:09 a.m.
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“There is no budget line item that we’re not looking at.”
Wrong! Teachers and aides must be off-limits to the budget cutters. The farther any employee, any project, any facility, etc., is from direct student contact, the more susceptible it should be to getting cut.
Dec 12, 2010 at 1:48 p.m.
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I think that is a great idea. Move everyone out of the ESC except for schulte, Erhardt and Sperry. Then move TAGOS "leadership acadamey" and the other charter schools down there. What better people to have influence the students of these charter schools through daily contact then the disticts top administrators. Makes sense to the average person but surely won't happen. It is obvious there would be office space available at the high schools for the people from the ESC with teacher layoffs. Sounds like an easy money maker.
Dec 11, 2010 at 11:52 p.m.
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What the school board needs to do, is to eliminate the Studer Study, which will save over a million dollars. How many teachers and aides will be cut? It is bad enough for Special Ed., where they are understaffed every year and will get worse.
Dec 11, 2010 at 9:18 p.m.
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Why doesn't the school board use their taxing power? When they don't increase taxes, they loose state aide. Since they haven't raised taxes the past several years, we have lost millions in state aide! If the city can increase what we pay for trash, why can't the school board raise taxes? Are we ready to say that trash is more important than the kids? I mean seriously it would only be around $100 extra? If Beloit can do it, why not Janesville? I just don't get it.
Dec 11, 2010 at 6:41 p.m.
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What about moving all ESC staff to the high school buildings/other buildings in the district, and relocating the Charter schools into the ESC building? That change alone would cut a considerable amount in rental costs yearly...and it would have little to no negative impact on students or academics. Let's get creative to do what's best for the students in our community.
Dec 11, 2010 at 6:29 p.m.
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How about the district look at all the buildings they rent at a crazy amount of money. The TAGOS school pays over $15,000 a MONTH in rent, the international school and charter pay over $7,000, and who knows how much they spend in all the buildings they rent for storage of old school materials. I think you could save a lot of money just cutting the rent there and maybe closing those schools or moving them to elementry schools that have alot of room.
Dec 11, 2010 at 5:39 p.m.
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Where is the funding shortfall? Aren't school districts mostly funded by property taxes? Do we have less property now or are there a bunch in arears? Also, didn't they just jack property taxes to help the schools? And also, are there not less students? So, is it too much to expect that costs might go down a bit? How can there be a shortfall? was there one 2 years ago? 3 years ago? Has tax revenue dropped or have they spent/committed more money than property taxes generate? Enlighten me please. p.s. I could have swore that I heard Obama say that passing healthcare would make costs go down...........;....
Dec 11, 2010 at 5:18 p.m.
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Seriously...thank you for clarifying. A majority of high school classes already have 28 or more students in them...18 was the MINIMUM to run a class. A few people I talked to today read the article and thought that the MAXIMUM was being increased from 18 to 24...which is not the case.
Dec 11, 2010 at 4:27 p.m.
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The article states that "the change (in high school scheduling and staffing guidelines) would allow the district to increase high school class size from 18 to 24 students." No, it changes the MINIMUM amount of students in a class from 18 to 24. The class size could now range from 24 to 30 (and up). Elective classes with less than 24 students may be cancelled.
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