Several area residents - and a local organization were recognized as winners of annual awards sponsored by the Ely Chamber of Commerce.
The April 3 “Celebrate Ely” event at the Grand Ely Lodge included the announcement of this year’s award winners.
Brian and Andrea Strom, Jessica Dunn, sisters Cindy Nickolson, Sandy Nickolson and Sue Anderson, and the Northern Lakes Arts Association under the leadership of Ian Lah were all saluted at an event that also included dinner and a keynote speaker.
The Stroms, who own Brainstorm Bakery, led off the list and were named winners of the Chamber’s Good Neighbor Business Award.
“As a community, we are fortunate to have these entrepreneurs in our midst,” said Chamber board member Dave Sebesta, who announced the winner. “They give back far more than they receive. They are passionate about sponsoring get and finance committee, concurred.
“I agree you have to move forward with this process,” said Sjoberg.
At least two of the teaching reductions will be absorbed through attrition, given the pending resignations of two staff members.
Declines in enrollment have triggered some of the cuts in the elementary school, with only 176 students currently projected to be enrolled in grades K-5 next fall, including a 24-member kindergarten class.
“Declining enrollment means declining revenue,” said Oelke. “That’s what’s happening... These are not easy decisions. We’re really at a point where we have to tighten our belt or we won’t exist.”
Oelke conceded she had difficulty recommending a single section of kindergarten and said the district, with the hire of a teacher’s aide planned for that group, could quickly pivot to a two-section class should enrollment increase.
“One of the questions I got from staff is if we get more students at a grade level would we be adding,” said Oelke. “Absolutely we would be adding. I have said a number of times it makes my skin crawl to have 24 kindergarteners in a classroom. So if we got to 28 or 30 I would like to come to the board and say we need to add a teacher. In my vision we have the other kindergarten room, set up and ready to go in case we need to pivot really quickly and split the two classes.”
Since an earlier budget session, Oelke also recommended that the district use a teacher for core subjects in third and fourth grade, while maintaining single-section classrooms.
“These classrooms in the elementary are what we are looking to for some creative thoughts,” said Oelke.
Other items on the table include:
• Reducing a sixth-grade teaching position to .4 FTE for core language arts and math classes;
• Reducing music education from 1.8 to 1.6 FTE;
• Reducing Spanish from 1.0 to 0.6 FTE;
• Reducing the English department from 2.8 to 2.0 FTE.
• Eliminating two bus routes;
• Reducing purchased service contracts by $40,000;
• Eliminating a part-time custodial position;
• Eliminating an overload teaching assignment by moving sixth grade back to the grade 7-12 schedule;
• Eliminating the community education position and adding duties to the assistant principal;
• Reducing some miles traveled by school sports teams and raising athletic participation fees for seventh and eighth graders as well as the family cap; Data compiled by the district showed cuts made for 2024-25 stayed almost entirely away from teaching staff and impacted employees including aides, secretaries, cafeteria and student help, administrators and paraprofessionals.
The proposed reductions not only impact the elementary school but the middle and high school as well with fewer class sections and the elimination of some courses that had fewer than 10 students registered.
Discussion at the budget session also veered to the impact the post secondary enrollment option program has on the district budget.
As many as 39 high school juniors and seniors are expected to take classes at Vermilion Community College in 2025-26.
The district gets as little as 20 percent of the state aid for many of those students, and creating a budget hole of $300,000 or more.
“That’s like losing a whole grade level,” said Oelke.
The district surveyed high school sophomores and found many cited cost savings and the chance to obtain college credit - while still in high school - as key factors in PSEO participation.
Others pointed to more flexibility and an opportunity to have less rigid restrictions than in high school.
Oelke noted that the district is exploring online offerings and Sjoberg said the district may need to adjust to meet the needs of students.
“We have to change as the times change,” said Sjoberg.
To date, school officials have shown no interest in moving to a four-day week, which has been enacted by the neighboring St. Louis County District 2142, which operates schools in Babbitt and Tower. An analysis by district officials showed that a four-day week could bring about a budget savings of about $77,000.
As recently as 2017, the district had 598 students enrolled in grades K-12, but that number has since tumbled, with current enrollment at 512.
The district’s adjusted average daily membership, the number that determines state aid to districts, has fallen more dramatically and does not show signs of ending.
Using state formulas, the district’s ADM fell from 574.69 in 2020 to 495.83 this year and is expected to tumble to 462.73 for 2025-26.
State aid is the largest source of district revenue and has fallen faster - because of enrollment declines - more than initially estimated by the district.
Meanwhile, the district is facing rising expenditures and has posted general fund deficits every year since 2021, with overall district fund balances falling from nearly $2.9 million in 2020 to $1,451,474 this year.
Unassigned fund balances have shrunk by about 75 percent during that time period and earlier this year the school board adopted a revised budget showing a $318,495 gap for 2024-25.
An anticipated inflationary increase in state funding for 2025-26 amounts to $92,546, but is offset by a $330,000 hit because of enrollment losses.
The district also faces a loss of compensatory revenue from the state and the 2025-26 budget includes assumptions for new costs related to payroll taxes and summer unemployment, as well as salary increases as employees advance on the pay scale, and potential negotiated changes.
Together, it makes for a 2025-26 deficit of $459,431 if no other reductions are made and no additional revenue materializes.
