By Thomas J. McKillen
Managing Editor

The Menomonee Falls School District will have its state aid reduced by 15.2 percent, according to information from district Business Services Director Jeff Gross.
During a July 12 School Board meeting, Gross noted this is the second year in a row that the district will see its projected state aid reduced by 15 percent. State aid to the district was reduced by 15.1 percent for 2009-10 and by 5.4 percent for 2008-09.  Since the 2007-08 school year, state aid to the school district has been reduced by $5,039,084
Gross said the reduction is due in part to declining enrollment, which in turn increases the per pupil cost per student for the district.
For this year's budget, the reduction amounts to $1.9 million that the district will have to levy through the property tax. Gross explained that reductions in state aid are offset by increases in the property tax. If the district were to not choose to levy to the maximum amount allowed by the state, it would lose that amount in future budget projections.
Gross said the reduction in state aid was reflected in the 5.6 percent increase in the district property tax that was described during a June budget hearing.
When asked, Gross said the final budget figures for the current school years and property values will be factors that will determine how much state aid the district will receive. Gross said state aid is based on the ability to pay locally. As a result, districts with higher property values will receive less state aid.
Gross said “our values are holding better than the rest of the state” which will impact the district negatively in terms of state aid. That combined with decreasing enrollment attributed to the reduction, he said.
"This hits us pretty hard," School Board member Faith Vanderhorst said of the two years of 15 percent reduction in state aid.
In explaining the reduction, Gross noted that approximately 400 students graduated from the high school this past spring while an estimated 300 students are expected to begin kindergarten in the fall. While the district gains students in other grades as parochial students move into the  school district, the enrollment will still be lower and continue a trend that has occurred over the past several years.
Board members struggled to understand why Menomonee Falls has been hit hardest with declines in state aid.
"I don't think we have the exclusive market on declining enrollment and we're getting hit harder," School Board President Kathy Shurilla said. “I just don’t understand it.”
Board member Scott Ternes asked Gross to come back with figures showing how much of the reduction is due to declining enrollment and how much is due to other factors.
"I don't know how they expect us to educate children sometimes," Shurilla said about the state revenue reductions.
Gross indicated that it will be difficult to project the budget situation next year since the state Legislature will likely still be working on the biennial budget.