Superintendent Dan Nerad:

As part of the Education Job Funds recommendation, we are recommending using approximately $4.2 million for funding the shortfall created by beginning this new program in 2011-12. This plan for funding 4-k will continue to have the assumption that property taxes will have to be used to support approximately $3.7 million of the start up costs for this program in 2011-12 as well. The use of these Education Job Funds if approved, creates an opportunity to utilize funds originally targeted for 4-k start up in a different way.
During the process of re-financing the district’s Wisconsin Retirement System (WRS) unfunded pension liability, the Board of Education approved a financing plan that prepared for the use of borrowed funds to support the 4-K start up (See next page). This structure effectively created budget capacity of approximately $4.2 million over the next three years. These funds were targeted originally to pay for a borrowed amount equal to $4.2 million to support the first year of 4-K, but the Federal Education Job Funds created an opportunity for MMSD to re-evaluate this decision.
Administration would propose the concept of utilizing these budget funds, originally meant to re-pay a 4-K borrow of approximately $4.2 million, to support Maintenance and Technology needs over the next two years. Under this idea, MMSD would move forward with borrowing funds as planned, but rather than using these funds to support 4-K, shift the purpose to meet technology and maintenance needs. Itwould be our intent to split these funds equally between these two areas, and work with the Board over the next 6 to 9 months to prioritize needs within these two areas.