Rice Lake School Board Reviews Financial Pressures, Proposed Retirement Benefit Changes

By Joe Morey

Free Press Editor/Publisher

The Rice Lake Area School District is continuing to examine its financial outlook as declining enrollment, rising operating costs and proposed changes to employee retirement benefits remain among the issues facing district officials.

During the October school board meeting, members received an update from the district's Finance Committee, which has been reviewing enrollment projections, spending pressures and potential cost-saving measures.

District officials reported that the district's Fund 10 revenue limit has increased from approximately $25.3 million to $27.7 million over the past decade, representing an average annual increase of approximately $235,000.

By comparison, officials said staff raises for the current year alone totaled approximately $600,000.

The district also discussed the impact of changes in state aid on local property taxpayers.

According to information presented at the meeting, School Administrator Randy Drost, said the district experienced an approximately $1.5 million reduction in state aid in the previous year, contributing to a local property tax levy increase approaching $2 million.

Jensen said final state revenue limit figures were expected later in October.

Another financial issue under consideration involves changes to the district's post-employment benefits.

The Finance Committee reviewed proposed language changes recommended by the district's attorney, with a second reading and possible board action scheduled for October 26.

During the discussion, board members acknowledged that employees had raised numerous questions about the proposed changes and that some employees could be negatively affected, particularly those planning to retire earlier.

Officials said written responses to employee questions would be distributed, with additional opportunities for staff to seek clarification.

The board also received information about long-term enrollment projections and possible adjustments to district operations.

District administrators presented projections suggesting continued enrollment challenges over the coming years and discussed possible changes to school configurations, staffing levels and educational programs.

The Finance Committee directed administrators to develop financial estimates for the options under consideration.

In other business, keven Jensen, school board president, reported that the district's community center and Boys & Girls Club project had been completed approximately $443,000 under budget and was already in use. He also reported ongoing efforts to identify a developer interested in purchasing the former Lincoln building for possible conversion into housing.

The district's 2026–27 budget hearing and additional consideration of post-employment benefit language were scheduled for October 26.