Shorewood Schools, like school districts throughout the state, have experienced budgetary difficulties over the last number of years. We are searching for creative solutions to these problems to ensure the continued excellence of our schools. On the Village side, all Trustee candidates and current Trustees seem to express the desire to find ways to help the School District.
Below is a letter I sent to both School District and Shorewood Village officials, outlining an idea for one way this collaboration might happen. It is an idea I brought up during the campaign, but that is not original to me.
The idea itself was first proposed by a School Board member closely related to me who has since left both the Board and the country. However, since nobody seemed to pick up the idea and run with it after it was proposed, I brought it up again during the campaign. My hope is that by giving this idea the light of day, we can explore it further, and see if it has merit. As I state in the letter, there are definitely some legal issues we would need to consider before proceeding. But if it could be put into practice, it could be one small step toward alleviating the funding shortfall our schools are experiencing.
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Given the continued funding difficulties within the school district, I continue to be interested in the possibility of intergovernmental loans between the Village and the School District. I mentioned this as an idea at one of the campaign forums, and it seems more timely now than ever. WI Statue 61.34(4) seems to specifically authorize this activity.
"The village board may loan money to any school district located within the village or within which the village is wholly or partially located in such sums as are needed by such district to meet the immediate expenses of operating the schools thereof, and the board of the district may borrow money from such village accordingly and give its note therefor. No such loan shall be made to extend beyond August 30
next following the making thereof or in an amount exceeding one-half of the estimated receipts for such district as certified by the state superintendent of public instruction and the local school clerk. The
rate of interest on any such loan shall be determined by the village board."
It would remain necessary to determine whether it would be possible to effect such a transaction in a manner advantageous to both parties. If the short term borrowing costs for the school district exceed the rate of return the village is getting on the same amount over the same time period, there may be a real opportunity here to benefit both sides. If would also be necessary to determine the effects (if any) of this activity on current school funding formulas at the state level.
Best Wishes,
Steve Koczela
4526 N Woodruff Ave
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