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An effort to trim as much as $460,000 from the Ely School District budget continued this week, with a first look at potential reductions being considered by school officials.
The list includes several cuts in teaching staff, which could reach as high as 4.6 full-time equivalents in one option presented at Monday’s school board study session.
Also notable was what was absent from the list: a possible shift to a four-day school week.
While neighboring St. Louis County District 2142 is cutting a day off the school week as part of its own effort to trim expenditures, Ely school officials, at least for now, don’t seem to be pursuing that route.
“I would not be a proponent of going next year at all (to a four-day week),“ said superintendent Anne Oelke.
An analysis by district officials showed a four-day week could save as much as $77,000 in Ely.
“Those are the most concrete numbers we could come up with,” said Oelke, who added that the district would likely need more “legwork” if it were to pursue a four-day option.
“It’s a decent chunk of money, but I don’t think we’re at that level where we want to take a day of education from students,” said board chair Rochelle Sjoberg. “I know I am not there.”
Oelke also indicated that there’s a chance the district could gain students - particularly in the elementary school - if schools in Babbitt and Tower go to four days in 2025-26.
“Their sights are going to look at us if we’re not (at four days),” said Oelke. “Do I know that for sure? Absolutely not.”
After making about $250,000 in spending cuts and revenue enhancements last year, in an array of budget areas, the options on the table this time around weigh heavily on teaching staff, which come amid continued declines in student enrollment.
“We have to pay attention to our class sizes in both Washington and Memorial as an opportunity, unfortunately, to do reductions,” said Oelke. “Not that I want to do that, but 460 is a big number and we have to get there somehow.”
Among the teaching reductions being considered include:
• Moving from two sections to one section for the 28-member third-grade while adding a teacher’s aide;
• Moving from two sections to one section for a 24-member kindergarten class while adding a teacher’s aide;
• Combining elementary grades with two teachers and no aides and a 22-member class size;
• Reducing a 34-member sixth grade from two sections to one while adding a teacher’s aide;
• Reducing music education from 1.8 to 1.6 FTE;
• Reducing Spanish from 1.0 to 0.8 FTE;
• Reducing the English department from 2.8 to 2.0 FTE.
Other items on the table include:
• Eliminating either one or two bus routes;
• Reducing purchased service contracts by $40,000;
• Eliminating a part-time custodial position;
• Eliminating an overload teaching assignment by moving sixth grade back to the grade 7-12 schedule;
• Eliminating the community education position and adding duties to the assistant principal;
• Reducing some miles traveled by school sports teams and raising athletic participation fees for seventh and eighth graders as well as the family cap;
• Applying the family athletic cap only to those sports entirely funded by the district.
Potential athletic cuts were addressed, although since last spring about $20,000 in cuts and revenue enhancements have been made, including funding for speech as well as boys and girls golf shifting from Ely to Northeast Range as part of a cooperative agreement.
Overall athletic spending is estimated at about $217,000.
“When we’re looking at that budget it’s a very small part of our $8.5 million budget,” said Oelke.
Oelke also cleared up some misconceptions about the cost of the district-owned ice arena.
The district is allowed to levy for operational costs, and those funds may only be used for the arena.
“We pay about $14,000 in operating costs over the levy,” said Oelke.
School board member Tom Omerza noted that districts across the state are wrestling with budget issues and those talks usually focus on reductions. He suggested steps aimed at increasing district revenues.
The district is exploring the possible addition of a grant writing position, which at least initially could be funded by the Ely Educational Foundation.
Monday’s discussion was just a step in the process that included a staff meeting Tuesday, further refining of proposals and another school budget and finance committee session April 7.
The board could take action April 14.
Although no cuts have been finalized, Oelke recommended that the board meet the $460,000 gap currently in place, in part because of future unknowns including the impact of further enrollment declines, the state budget as well as federal action that could eliminate the Department of Education.
A year ago, the board approved more than $250,000 in spending cuts and revenue enhancements to bridge a budget gap, and last fall Ely district voters approved a $350,000 capital levy to pump more revenue into the district.
But those moves haven’t been enough to improve the budget picture and the district continues to face challenges that include declining enrollment, increased operating expenses, unfunded mandates from the state, and unforeseen circumstances.
As recently as 2017, the district had 598 students enrolled in grades K-12, but that number has since tumbled, with current enrollment at 512.
The district’s adjusted average daily membership, the number that determines state aid to districts, has fallen more dramatically and does not show signs of ending.
Using state formulas, the district’s ADM fell from 574.69 in 2020 to 495.83 this year and is expected to tumble to 462.73 for 2025-26.
State aid is the largest source of district revenue and has fallen faster - because of enrollment declines - more than initially estimated by the district.
Meanwhile, the district is facing rising expenditures and has posted general fund deficits every year since 2021, with overall district fund balances falling from nearly $2.9 million in 2020 to $1,451,474 this year.
Unassigned fund balances have shrunk by about 75 percent during that time period and earlier this year the school board adopted a revised budget showing a $318,495 gap for 2024-25.
An anticipated inflationary increase in state funding for 2025-26 amounts to $92,546, but is offset by a $330,000 hit because of enrollment losses.
The district also faces a loss of compensatory revenue from the state and the 2025-26 budget includes assumptions for new costs related to payroll taxes and summer unemployment, as well as salary increases as employees advance on the pay scale, and potential negotiated changes.
Together, it makes for a 2025-26 deficit of $459,431 if no other reductions are made and no additional revenue materializes.
