School board ups substitute pay rate
By Steve Van Kooten
The Wauzeka-Steuben Board of Education reviewed more information about the impending operational referendum during their December meeting.
An operational referendum funds essential costs and daily expenses of the district, while a capital referendum is money acquired to pay for construction projects.
Jeff Mara, the district’s business official, said Wauzeka-Steuben’s current mil rate is 9.92, which means the school taxes $9.92 for every $1,000 of taxable property for its levy. The district’s tax levy was $1,571,000.
“I was really hopeful that number could be the top tax levy number going forward, but it doesn’t appear with the current assumptions that is going to be possible,” he said.
Mara added that the district’s biggest obstacle is declining student enrollment.
This year’s full-time enrollment for Wauzeka-Steuben is 215 students. Next fall, that number is projected to fall by five students, and the downward trend isn’t expected to change in the near future.
“All the way out in 2030, you’re down to 194,” said Mara.
Enrollment is not easy to calculate, and there is always some variance because of open enrollment and students that either leave or enter the district in between those times. That means the district’s numbers could change — either positively or negatively.
Mara also told the board that the district will be losing a large number of open-enrolled students in the next two graduating classes.
“In two years, we’re losing 13 open-enrolled students,” he said. “That affects our revenue as well because we won’t be getting that money from other districts.”
He estimated the district will lose about $150,000 after those students leave the district.
Home districts pay for students enrolled in other schools through a reallocation of state aid to the district hosting the student.
The district is operating with a $1.1 million referendum this year; however, Wauzeka-Steuben has to go back to the polls for another operating referendum. Without one, the school will have a shortfall of “just over” $1 million.
In 2027–28, that shortfall increases to approximately $1.24 million, according to Mara.
“As you go out further, that number increases,” he said.
If the community approves another $1.1 million referendum, it would increase the mil rate to 10.67 next year and 10.85 the following year. The tax levy would also increase $150,000 next year.
“That’s still quite a bit below what we’ve been targeting — that 12.70 for our mil rate,” said Ken Buck, member of the board of education.
Mara said the numbers are temporary and may change as more information comes in from December.
“Are we going to come in under budget $100,000 that we’re not expecting to, and how will that affect things going forward?” he said.
“Every year you go out, the numbers become less reliable,” said District Administrator Dr. Dan Olson.
He pointed out that the school can make more definitive financial projections for next year because the state budget is in place. After that, there are more variables to anticipate when it comes to state aid to schools.
“Even going out two years, we have a new state budget, and we’re going to have a new governor. So, there can be a lot of variance in what happens with state funding,” he said. “Because of that uncertainty as you get two, three or four years out, Jeff and I talked about possibly considering a two-year referendum instead of trying to project it out.”
The board plans to hold a special meeting tentatively scheduled for Jan. 12 to further review information regarding the referendum.
Substitute compensation
Olson, representing the district’s HR Committee, proposed two changes to the district’s substitute pay rates.
Typically, a district looks at changes in compensation at the end of a school year; however, Olson said it had been two years since the board had looked at or made changes to the pay rate for substitute staff.
Another reason is because the district has difficulty courting substitute staff. Wauzeka-Steuben was “dead last” in CESA 3 for daily compensation rates for substitutes, according to Olson.
“We do have a number of very good, qualified people who like to work in the district, but when neighboring districts are paying more, it makes it challenging for them to choose to work with us,” he said.
The committee recommended raising the daily rate to $150, which would make the district “much more competitive.”
The board also looked at the long-term rate for substitutes, which Olson said is competitive with other districts.
“You have had it for some time where it is based upon the base full-time teaching pay, so that does get an annual increase automatically,” he said.
Even though Wauzeka is keeping up with their long-term pay rate, the administrator said the district was still lagging behind in a different way.
“One way we’re behind is that most districts have a qualifying period before receiving that rate, and ours is 30 days,” he said. “That’s kind of unheard of; 10 days is pretty typical.”
The committee suggested reducing the qualifying time to 10 days.
Mara said he had already accounted for the change in the school’s budget projections.
Principal Tiffany Dums said feedback given to the district by potential substitutes is that the policies “should be looked at.”
The board approved raising the daily rate for substitutes and reducing the qualifying time for the long-term substitute pay rate. The rates went into effect in 2026.
In attendance were Nikki Asleson, Jessica Bird, Buck and Thomas Martin. Olson, Mara, Dums and Kevin Killburg were also present.
The next regular meeting is scheduled for Jan. 19. A special meeting is scheduled for Jan. 12 at 6 p.m.
