Despite significant budget reductions, the Ely School District still anticipates spending more than it takes in next year.
During a special meeting Monday, school board members adopted a 2025-26 budget that includes a $64,282 deficit in the general fund.
The district’s finance committee and administrators recommended the budget and it was approved on a 5-0 vote, with Hollee Coombe absent.
Earlier this year, school board members cut about $450,000 from the budget, including moves that reduced teaching staff in both the elementary and middle/ high school buildings, but district finance manager Jordan Huntbatch told the board this week that those reductions weren’t enough to bring about a balanced budget.
“We made all of those cuts and we’re still short,” said Huntbatch.
The 2025-26 budget, however, comes much closer to break-even than in 2024-25, when the district was in the red to the tune of just over $318,000.
“Next year we hope (the deficit) is zero,” said superintendent Anne Oelke. “We’re trying to claw our way back out of deficit spending.”
Board chairperson Rochelle Sjoberg agreed.
“We aren’t in the clear, but from where we were and what we were looking at, this is significantly improved,” said Sjoberg.
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.
Board member Tom Omerza noted the deficit will have a further impact on district reserves.
“We’re well below where we want to be,” said Omerza.
The board addressed budget matters during the monthly study session, held prior to the special meeting.
The district fell short of the balanced budget in part because state aid didn’t reach the levels district officials had hoped, as well as the declines in student enrollment.
Ely’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 461.50 for 2025-26. Only 24 kindergarten students are expected to enroll in the fall.
Meanwhile, school officials were disappointed that legislation supported by both State Sen. Grant Hauschild (D) and State Rep. Roger Skraba (R), which would have sent additional school taxes paid by seasonal recreational property owners to the Ely district, failed to take hold.
“There were some disagreements and it didn’t happen,” said board member Tony Colarich. “If we can keep focused on that, and I know our Senator and House members are going to keep trying.”
During the study session, Huntbatch reviewed many of the budget reductions that were put in place for 2025-26.
Washington Elementary School will have fewer teachers next fall, including just one teacher for a 24-member kindergarten class and reducing both the 28-member third grade and 34-member fourth grade to a single section, with a “floating” teacher working in both grades in core math and English subject areas.
Both the middle school and high school will also see reductions in teaching staff with the sixth grade going from 2.0 full-time equivalent to 1.6, and both foreign language and English departments seeing reductions.
The district also cut two bus routes, reduced custodial staff, made reductions in information technology and absorbed the community education director position into another job.
Huntbatch said the district also faces continued increases in technology subscription costs, a new paid leave tax that goes into effect next year, more expenses related to teacher retirement and salary hikes that come with employee advancement across pay scales.
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.
