LINE IN THE SAND?

Beth Giese is less than a month on the job as the new Kasson-Mantorville Superintendent, but she doesn’t mince words when it comes to contract negotiations, including with KMEM, the union representing rank-and-file teachers.
The administration will recommend against deficit spending to settle contracts. 
“There’s only so much money, and I love a board that says it’s not going to deficit spend, that’s important to us,” Giese said last week during a wide ranging interview with the Dodge County Independent.
For school districts, spending on contracts ultimately depends on how much revenue is coming in, while also factoring in expenses.
It comes down to one important element: enrollment.
“Enrollment drives everything,” Giese said.
Numerous Factors
Giese began her career as a special education teacher at KM roughly three decades ago, and since then, she’s seen a lot of changes in education.
Now, one of those major changes is mobility. Because families move from district to district, projecting enrollment is difficult.
Business Manager Bob Hasz explained the state and the district use enrollment as of Oct.1 to determine funding. That’s months after the fiscal year ends.
“Families are very mobile nowadays, so as the kids come in, we have families that are leaving, so our projection on enrollment is just that. We don’t know what the final number is until probably two, three months until the fiscal year is over,” Giese said.
Hasz explained the district may have a family start the first day of school at KM and then leave halfway through the year. That scenario would give the District the per pupil funding only for a few months.
“In my 30 years, I’ve never seen (families) this mobile,” Giese said, citing factors including split families and housing. Before, she said, families would move within the same district. “Now they’re moving wherever housing is at.”
It’s not just families who are struggling to make ends meet, either.
Despite having an objectively healthy, six-figure salary, Giese is also having a difficult time with housing.
“I’m trying to find a place to live, and it’s so difficult,” she said.
Ultimately, Hasz said, the final enrollment number isn’t expected to be fully vetted until students show up to school the first day.
“It’s kind of that hold your breath moment, the first day of school to see how many kids actually show up,” Hasz said.
According to Giese, KM isn’t in as bad a position as other school districts when it comes to enrollment. For example, she said across the state, districts are reporting upwards of 8% declines in enrollment, while KM is projected to be around 5%.
“If you’re not down 8% you’re kind of considered ahead,” Giese said.
Revenue Up, Expenses
As part of the proposed FY 25-26 budget, which will be approved in December and then revised in June, 2026, the school District will be seeing a General Education formula increase of 2.74% or $199 per pupil unit.
“Each pupil unit is now generating $7,480. Revenues from the State comprise 85% of the General Fund,” Hasz wrote in his budget presentation.
Hasz said the good news can be misleading, as people assume every revenue source is going up by that percentage “which is not true.”
For example some federal funding is going away, and school districts across the state are dealing with more unfunded mandates.
“One of the new mandates passed by the 2023 Legislature is the Paid Family Medical Leave Act (PFML) which is slated to take effect on January 1, 2026,” Hasz wrote. “This comes at a cost to the District at approximately $55,000 for the FY26 budget cycle. Looking ahead to FY27, once full implementation takes place the cost increases to approximately $75,000-$80,000, pending the rate for calendar year 2027.”
Don’t deficit spend
Hasz has been part of the district for over two decades and has seen highly contentious contract negotiations, including the most recent deal between KMEM and the district, which generated social media chatter and media attention.
For him, it comes down to one thing: not spending more money than is coming in.
“Typically the board has said we’re not going to deficit spend when we settle a contract,” Hasz said.
In a follow-up email, Hasz explained it is “staying within the budget that the Board has adopted,” while taking numerous factors into account, including enrollment, breakage, and even the fund balance.
“The Board policy for our fund balance (the district’s ‘rainy day fund’) is that we strive to be at 10% of annual expenditures,” Hasz said. “ Right now, the fund balance is at approximately 6-7%.”
Giese said her hope is to have the contract settled before it expires, avoiding retroactive payments. But she also knows the reality of being the third person in her office since Mark Matuska left right before the 2022-2023 school year.
“They’ve had a lot of superintendents here,” she said.