Superintendent warns of cash-flow shortfall: Amery board hears $5M refinancing loan, 25 position reductions and tables pay raises

The Amery School District board on April 7 received a wide-ranging financial update from a district official (referred to at the meeting as Mr. Gold) that described multi-month reconciliation work revealing cash-flow shortfalls and resulting staff and budget actions.

Mr. Gold told the board the district reconciled revenues and expenditures from the prior fall and determined it must reduce expenditures to remain fiscally stable. "In total, the district has reduced 25 positions, representing approximately $1.2 million in savings," he said during his remarks. He said the district expects an additional $500,000 to $750,000 in non-personnel reductions for 20262027.

To ease short-term pressure, the district secured a $5 million operational loan through the State Trust Fund to refinance existing short-term debt. The presenter stressed the loan is a refinancing of obligations and "is not a referendum and does not increase property taxes." He said legal counsel and financial advisers advised that no electoral approval was required for the refinancing cited on the application.

Board members and administrators then discussed the district's long-range budget outlook, the need for audited financials and a forecast from the district's financial consultant. Several board members argued it would be prudent to wait for the audit and a forecast from Baron Financial Services before approving proposed staff salary increases.

Administration presented proposed changes to certified and support staff salary schedules (including a suggested increase in certified beginning wages from roughly $43,000 to $45,000 and substantial increases for some support-staff positions). The administration said the aggregate net reductions (positions plus other savings) would still leave a projected reduction of about $1.259 million before any salary increases are applied.

After debate, a board member moved to table the compensation portion of the handbooks until the May regular meeting to allow the finance oversight committee to review the audit and the district's forecast model. The motion to table was seconded and approved by voice vote.

Later in the meeting the board approved 20262027 contracts and letters of appointment; administrators said final contract documents will reflect any compensation decisions made after the May meeting.

The superintendent said the district will present the audit and a multi-year forecast to the board in May to inform decisions about salary adjustments and long-range budgeting.