The year 2026 has barely begun, but Shawano School District’s superintendent is already sounding the alarm about the need to trim $1.6 million in operating expenses in its 2027 budget.
Kurt Krizan sent a written notice to school district staff on Jan. 9 warning that maintaining the status quo would likely deplete its fund balance within five years, putting it in a dangerous financial situation. Currently, the district has almost $10.3 million in its fund balance, just under 30% of its expenses in the 2025-26 budget. If the district does nothing to reduce its operating budget, it’s estimated that the 2030-31 school year will see the district’s fund balance just under $2 milion, around 5.16% of the district’s expenses.
Experts recommend that school districts keep a fund balance that’s between 20-30% of its annual expenses. Krizan wrote that doing this prevents the district from having to do short-term borrowing during the school year while waiting for state aid to arrive, as well as having funding available in the event of emergencies. If the district can reduce its expenses, then the fund balance can stay where it is.
Krizan indicated continuing decline of student enrollment was the reason that the school district is in a situation where reducing the budget is necessary. Five years ago, the district’s enrollment was around 2,300 students, but the estimate for the next school year is that the district will hover around 2,000 students, a reduction of over 13% in the six-year period.
State aid amounts are primarily based on student population with at least $11,000 per student provided to school districts.
Krizan wrote that revenue limits prevent the district from setting the budget at whatever amount they want. In order to exceed revenue limits, the only options available are through voter-approved referenda. The district received approval from voters in November 2024 to spend over $51.2 million for expanding facilities and modernizing the existing ones. Many of those construction projects are currently under way.
Referenda can also be called to increase operations budgets for a pre-determined number of years, usually three to six, although Krizan’s letter does not indicate that is currently on the table. Other surrounding school districts have taken their requests to voters, with most getting approval.
Krizan wrote that several options have been determined by administrators as ways to reduce operations but noted that it has not been written in stone that the following reductions will take place:
● Operational and administrative reductions: Recommended and optional reductions target non-instructional costs, including benefits, contracts, stipends, and administrative structures.
● Staffing and class size adjustments: Multiple scenarios adjust class sizes at various grade levels and explore changes to middle and high school schedules. Some scenarios also consider the future of the LEADS Charter School.
● Program changes: Options explore scaling back, restructuring, or delivering select instructional offerings through alternative models, including consolidation, virtual options or modified access to advanced learning opportunities.
● Student support services: Potential reductions focus on the level and configuration of student support services, including academic, behavioral, social-emotional and instructional support systems.
“In addition to reductions, the district is exploring revenue-generating opportunities, such as increased facility-use fees, student fee adjustments, renewable energy projects, leasing opportunities, program expansion, and partnerships,” Krizan wrote.
He outlined a process through the end of February where the district will determine where to cut expenses. Some of the options will be presented to the Shawano School Board at its next meeting Jan. 26. Community listening sessions have been tentatively planned for Jan. 28 and Feb. 2, although times and locations have not been announced. District officials plan to create scenarios based on feedback from community listening sessions, and then the school board is expected to vote Feb. 23 on a selected reduction package.
“I recognize the difficulty of this information and the real impact it may have on our staff and students,” Krizan wrote. “No decisions have been made at this time. The purpose of sharing this overview now is to be transparent, to outline the process ahead, and to reaffirm our commitment to making thoughtful, student-centered decisions guided by clear criteria.”
lpulaski@newmedia-wi.com
