On March 11th, 2024, at the regular monthly board meeting, the Eureka School Board passed an opt-out resolution. The resolution is for $600,000.00 for the next ten years. This is a renewal of the two existing opt-outs that are expiring at the end of this year. This is NOT an increase in taxes, it is a renewal of what has been collected the last four years.
What is an opt-out? An opt-out is when a school district cannot operate on the revenues generated by the maximum levy set by the state and from state aid. When this happens, the school district may choose to opt-out of the general fund limitations. The Eureka School District has operated with an opt-out for the past twenty years.
One of the reasons why an opt-out is necessary is due to existing and new state laws. Senate Bill 127 was passed this year which takes away a lot of local control on what the school district can pay for teacher salaries. The law establishes a state minimum salary for teachers. For the 2024-2025 school year the minimum salary is $45,000. For the 2025-2026 school year it is set at $46,800. That number will continue to increase with inflationary increases to education that the legislature determines every year during their legislative session.
In addition to the state minimum salary, the law also makes the schools accountable to average teacher compensation. The average teacher compensation includes the salary and benefits of the teachers. Our average teacher’s compensation is $65,768.39. This number will need to increase with the state inflationary increases as well. If we assume a 3% increase to state aid annually, the average teacher compensation will have to increase around $2,000.00. With these two mandated accountabilities, the school district loses a lot of local control and flexibility on what it can do with the finances.
With the increases that are mandated to pay our teachers, along with the increase of other costs due to inflation, the school district is asking to renew the $600,000 of opt-out money. The past four years the district has taken $500,000 of the available opt-out money. State law mandates a 40% fund balance cap in the general fund compared to the annual budgeted expenditures. The district would take what is needed to balance the budget.
Before the opt-out was passed in 2020, the district was transferring money from capital outlay to the general fund. If this opt-out fails, the district will have to max out the capital outlay levy. The district would rather opt-out than transfer money from the capital outlay fund. The capital outlay fund is needed for other items such as buses and maintaining the properties.
Overall, the Eureka School District is asking for your support in the renewal of the opt-out. With the increases in everyday costs along with state law mandates, the district needs to opt-out to continue to provide a quality education to the students in the Eureka School District.
If you have any questions regarding the opt-out, please contact Mr. Weismantel at 284-2875.