Financial FAQ

We’ve gathered answers to common financial questions using publicly available information and statewide data to help our community stay informed.

  • Lake Country School’s financial challenges did not happen suddenly or because of one decision. They are the result of several long-term factors that have affected many Wisconsin public school districts over time.

    Most notably, state revenue limits have not kept pace with rising costs such as staffing, benefits, transportation, utilities, and instructional materials. While expenses increase year over year, districts are restricted in how much funding they can raise without voter approval.

    Lake Country School has used reserve funds and made adjustments over multiple years to balance its budget. However, those one-time solutions are no longer sufficient to address ongoing operational costs.

    Learn more about Wisconsin’s school funding structure:

  • This is a statewide issue, not unique to Lake Country School.

    Wisconsin public school districts across the state face similar challenges due to revenue limits, increasing operational costs, and funding mechanisms that rely heavily on local referendums. In recent years, hundreds of districts have gone to referendum simply to maintain existing programs and staffing levels.

    Lake Country School’s situation reflects broader trends impacting rural and small districts throughout Wisconsin.

    Statewide context and data:

  • The primary drivers of the budget gap are structural, not discretionary.

    Key factors include:

    • State revenue limits that restrict funding growth

    • Rising employee benefit costs

    • Inflation impacting transportation, utilities, and contracted services

    • Fixed operational costs that do not decrease proportionally with enrollment

    These pressures accumulate over time and cannot be fully offset through short-term adjustments or efficiencies alone.

    Additional background on cost pressures:

  • Post-Employment Benefits (often referred to as OPEB) are benefits earned by employees during their careers, such as health insurance benefits provided after retirement.

    These obligations must be planned for and funded over time. For small districts, OPEB costs can represent a meaningful portion of the overall budget and are influenced by factors such as healthcare costs and actuarial assumptions.

    OPEB obligations are not unique to Lake Country School and are subject to statewide accounting and reporting requirements.

    Learn more about OPEB and public school reporting:

  • Staffing and spending levels at Lake Country School are generally comparable to similar-sized districts when considering student needs, required services, and regulatory requirements.

    Small districts must still provide:

    • Special education services

    • Student support services

    • Administrative oversight

    • Transportation and facilities management

    These costs do not scale down easily with enrollment, which can make per-student costs appear higher when compared to larger districts.

    Comparative data sources:

  • Over time, Lake Country School has taken multiple steps to operate responsibly in response to rising costs and state funding limitations. These efforts include:

    • Since the 2023–24 school year, approximately $1.6 million in cumulative budget reductions and cost controls

    • Strategic use of reserve funds to avoid immediate disruptions

    • Ongoing evaluation of staffing and operational costs

    • Continuous review of programs and services to align resources with student needs

    • Changes to future post-employment benefit obligations to reduce long-term financial liabilities, while honoring benefits already earned

    These actions reflect a sustained effort to manage resources carefully. However, they cannot fully resolve long-term structural funding challenges on their own.

    General guidance on district efficiency efforts:

  • If the referendum does not pass, the district will need to continue operating within existing revenue limits.

    This would likely require additional reductions or changes over time, which could affect:

    • Staffing levels

    • Class sizes

    • Programming and services

    • Long-term planning options

    Any future decisions would occur through public meetings and established governance processes.

    Referendum outcomes explained:

  • Based on the district’s 3-year projections, the fund balance becomes negative by 2028–2029 under both flat and declining enrollment scenarios.

    Districts cannot operate with a negative fund balance. They must have enough money on hand to pay staff and meet obligations.
    LCS already relies on a line of credit to operate until major revenues arrive mid-year, and the district reports that some banks have begun declining loan requests due to the financial outlook.

    What this means:

    Without additional revenue or structural changes, LCS cannot continue operating in its current form. The district notes that significant long-term changes, including potential consolidation, would need to be explored.

    The State of Wisconsin does not have an established process for districts facing insolvency, making early planning essential.

  • A multi-year referendum provides stability and predictability.

    Asking for four years allows the district to:

    • Plan responsibly beyond a single budget cycle

    • Avoid repeated referendums

    • Maintain consistent staffing and programming

    • Engage in thoughtful long-term planning with community input

    This approach is common among Wisconsin districts facing similar challenges.

    More on multi-year referendums

  • Regardless of the result, Lake Country School will continue to engage in long-term planning and community discussion.

    This includes evaluating:

    • Financial sustainability

    • Enrollment trends

    • Operational options

    • Community priorities

    Any future decisions will be made transparently through public processes.

  • Community members are encouraged to stay informed through publicly available resources and open meetings.

    You can:

    • Attend school board meetings

    • Review publicly posted financial information

    • Ask questions during designated information sessions

    Helpful resources:

We believe an informed community is an engaged community. Additional financial information is available through public meetings and publicly posted materials.