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Schools

New Racine Unified Budget: Reduced Spending, Higher Tax Levy

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The Racine Unified School District Board of Education will consider a preliminary 2011-12 budget next Monday, June 20, that includes a 6.39 percent higher tax levy despite a double-digit drop in overall spending.

The School Board meeting starts at 6:30 p.m. at the Administrative Service Center, 2220 Northwestern Ave.

The preliminary budget totals $260.68 million—an 11.4 percent decline from the current budget. However, anticipated cuts in state school funding will contribute to a tax levy that is about $4.5 million more than what was required for the 2010-11 budget.

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The anticipated tax levy, based on $8.99 per $1,000 of assessed valuation, translates to $1,348.50 on a $150,000 home.

“This (budget) is a guideline for short-term borrowing. Things will be more solidified as time goes on,” said Marc Duff, the district’s budget manager. The new budget takes effect July 1.

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RUSD officials made several assumptions, based on expected actions by the state Legislature in the 2011-13 state budget. The assumptions include:

  • Total reductions of $14.98 million, or a 10.8 percent cut in state school property tax relief. This includes cuts in general state aid, funds for high poverty school districts and aid that will instead go to pay for voucher payments to private schools.
  • A 221-student enrollment reduction for 2011-12. Duff said that the proposed voucher program is anticipated to cover 200 students who would leave the district and 50 students who are already attending private schools.
  • The number of students leaving RUSD to enroll in other public school districts climbing from 690 to 751. Open enrollment tuition payments by RUSD are expected to exceed $4.35 million.
  • Restoration of $1 million in funds that RUSD will receive to cover the loss of students attending the 21st Century Preparatory charter school.
  • Reduced labor costs because of wage freezes and lower pension and health insurance costs negotiated with the district’s labor unions.
  • The expiration of $7 million in federal stimulus funding, which RUSD had used to cover some staff salaries.
  • An overall 0.5 percent reduction in the area’s property values.
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