RACINE COUNTY - Because of changes made in the 2009-'11 Wisconsin budget, the Racine Unified School District and several others in the area will receive less general state aid than last year, which likely means either school cuts or higher property taxes.

Unified expected general state aid to increase by 2.5 percent for the next school year. Instead they will see a 3.5 percent decrease.

"At this point, it's fair to say it's a bit of a shock," said Unified Superintendent James Shaw.

The district's total expected revenue for 2009-'10 was $267.7 million. Unified will get $4.8 million less state aid than last year and $8.2 million less than they anticipated in their 2009-'10 interim budget, according to Unified's Chief Financial Officer David Hazen and estimates from the Wisconsin Department of Public Instruction.

The district has not seen a decrease in general state aid at least as far back as 1993 and it's atypical to deal with such a big change so late into the district's budget making process, Hazen said.

"How we address this issue will affect education for years to come," Shaw said. "What's at stake here is the quality of education."

Shaw said the district is trying to understand the funding change fully before "fixing" things.

General state aid used to be based primarily on district spending: districts that spent more got more. But the new state budget approved last month changes things. General state aid is now awarded for things like enrollment and property value.

The enrollment component is why Union Grove's high school district has been given $291,000 more in state aid, an increase of about 9.5 percent. The high school's enrollment has been increasing for the last few years, said Union Grove High School Principal Al Mollerskov.

In Racine, Unified officials have no formal ideas on new budget cuts. Instead they are looking for input from employees and the community. The school board will discuss the budget and the state aid decrease at their July 20 meeting at 6:30 p.m. in Unified's administrative building, 2220 Northwestern Ave. Public comment is welcome there and at a public budget hearing to be held in August. After those events, the district must have a budget and a property tax levy finalized by Oct. 30.

One option, which district officials hope for, is keeping their interim budget intact and having the community step forward to help through higher property taxes.

"The reduction of state aid has caused a gap that can only be made up through property tax levy," said a press release from Unified and the unions representing district employees.

Unified's interim budget set the property tax rate at $7.37 per $1,000 of assessed property value. To make up for the loss in state aid, the rate would need to increase to $8.09. That increase would mean a $100,000 home would have a property tax increase of $87, 12 percent more than last year, according to the press release.

Such a property tax increase would let Unified keep their budget which was approved by the school board June 15, which already cut expenses by $4.5 million. Shaw said making those cuts did not involve the classroom but instead included cut staff and programs, transportation changes like new school start times and leaving positions unfilled.

"We tried to already look in every nook and cranny," Hazen said.

Shaw said there was excitement and unity about the budget, which allowed the district to create long-term plans for redistricting and school improvements.

"We don't want to lose that long-range plan or momentum," Shaw said.

Other districts' funding changesThe new Wisconsin budget has changed school funding, leaving many area school districts facing funding losses.

The state budget, approved June 29, reduced general school aid to districts by an average of 3.1 percent statewide, and more than 100 districts will see decreases of 15 percent or more. At least six school districts in the area will face decreases, according to state estimates.

The Burlington Area School District will get 5 percent less aid this year, a difference of about $970,000. The Muskego-Norway School District will receive $1.6 million less, a decrease of about 7 percent, according to estimates from the Wisconsin Department of Public Instruction.

Waterford Union High School District will see about $375,000 fewer state aid dollars, a decrease of 6.5 percent. Waterford Graded School District will get five percent less, a loss of about $425,000, the estimates said.

But not everyone has lost out. The Kenosha Unified School District will get 0.5 percent more in funding, an increase of about $657,000. In Union Grove, the high school district will see $291,000 more, about a 9.5 percent increase, and the Union Grove J1 School District will have $208,000 more in funding, a jump of 4 percent, according to state estimates.

Racine Unified general state aid

Received last school year: $136.5 million

Expected this school year: $139.8 million

Actual awarded this school year: $131.6 million