Financial FAQ

  • LCS is experiencing the same financial pressures felt by districts across Wisconsin. For more than a decade, state revenue limits have increased far below inflation, while the actual cost of operating a school — staffing, utilities, transportation, benefits, technology, and state mandates — continues to rise each year.

    Even with thoughtful budgeting and difficult reductions, this mismatch creates a structural gap that grows over time. It’s not the result of any single decision or leader. It’s the accumulation of statewide funding constraints that have finally reached a breaking point.

  • This is happening everywhere. More than half of Wisconsin districts have already turned to operational referendums simply to maintain current programs and services.

    LCS has avoided operational referendums longer than many neighbors, but state-imposed revenue limits and rising costs now place us in the same position other districts faced years ago.

    Understanding this broader context helps our community see that this is not “just LCS”. It’s a statewide funding pattern.

  • The primary issue is the state revenue limit, which caps how much funding a district can receive per student. These limits have not kept pace with CPI (inflation), meaning our “real spending power” has steadily decreased while operational costs have gone up.

    This creates a structural deficit. Something cost-cutting alone cannot solve. When revenue limits fall short year after year, even lean districts eventually face financial strain.

  • Post-employment benefits are commitments made in past contracts that continue to affect the budget today. These obligations decrease over time and will be fully paid off by August 2029, according to the district.

    LCS has already restructured benefits and taken steps to reduce long-term liability. OPEB is just one piece of the financial picture. And one that is actively winding down.

  • No. Staffing reflects what our community has always valued:

    • small class sizes,

    • strong academic and elective programs,

    • personalized support,

    • safety and supervision,

    • and a connected school culture.

    LCS has already right-sized staffing over the past several years. This includes reductions in classroom teachers, elective positions, and support roles.

    The district is now operating leanly. Additional reductions would directly impact the student experience families expect.

  • LCS is not alone. Many surrounding districts, including several that feed into Arrowhead, have already passed operational referendums to stabilize funding and maintain programs.

    Statewide revenue limits affect all 421 Wisconsin districts. LCS has simply reached the point many others reached years ago or will be reaching in the near future.

  • Yes.

    Over the past three years, LCS has made more than $1.6 million in budget reductions. These include:

    • staffing adjustments across teaching, electives, and support roles,

    • restructuring health insurance and OPEB benefits,

    • delaying purchases and reducing non-essential spending, and

    • operating with lean support staff and conservative purchasing.

    The district states it is now operating “as leanly as possible without compromising educational quality”.

  • 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.

  • LCS will continue sharing financial projections, exploring long-term options, and engaging community members in conversations about the path forward.

    This FAQ will be updated as new information becomes available. For details about the operational referendum being considered, visit the Referendum FAQ page.

  • Attend informational sessions, visit our Events page, or sign up for updates.

    An informed community strengthens our ability to make thoughtful, future-focused decisions for our school and our kids.