Monona Grove School District officials today announced that years of overspending, policy violations, and budget mismanagement have led to serious districtwide financial problems, according to the Wisconsin State Journal.
Nearly $8 million has been pulled from the district’s fund balance to account for regular overspending over the past three academic years, and the district currently has only around $2.5 million set aside — about 4% of the annual operating budget and well below the board policy requirement of 15–25%.
Significant cuts to district expenses will be required to replenish its reserves, while some immediate expenses will be covered with loans. The move is likely to hurt the district’s financial rating and future ability to take out short-term loans. The district is also projecting a $1.8 million shortfall for the 2024–25 school year.
The school board was reportedly unaware of any problems until July, when new Superintendent Tanya Fredrich “raised alarms” during a review of district finances. The board does not manage the district’s money on a day-to-day basis but is responsible for oversight of the district’s financial health, as well as approving an annual budget and tax levy. It apparently violated several of its own policies by allowing the unchecked overspending.
