APPLETON (NBC 26) — The Appleton Area School District faces a $13 million budget deficit as it enters the new school year, forcing officials to consider an operational referendum for the first time in district history.
The district has been paying off the deficit using unassigned funds that have now dwindled to just $1 million.
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"It's not wise to pay your house off with your saving account because eventually your savings account runs out. That's what we've done, our savings have dwindled down to none," Superintendent Greg Hartjes said.
The deficit stems from rising costs including staff healthcare, federal funding uncertainty and state-mandated school revenue limits that restrict the district's ability to generate additional income.
"There is no way we can decrease our expenses by $13 million given our inflation remains high," Hartjes said.
The Board of Education is weighing three options to address the financial crisis: an operational referendum to surpass the revenue limit, cutting programs, or implementing a combination of both approaches.
"It is a big deal, the board has not gone for an operation reference like this before, any referendum in the past has been for increased services," Executive Director of Finance Holly Burr said.
If approved, a referendum would likely fund the district's deficit for several years and would appear on the April ballot.
The board continues working on this year's budget, which will be adopted in October. Officials plan to decide by January whether a referendum is necessary and to determine its specific parameters.
