The Rugby School Board set the ball rolling for a referendum for an excess mill levy at a special election to be held on Oct. 14 to ease the district’s budget woes.

Superintendent Mike McNeff revisited the topic initially raised at the March 10 meeting, and clarified that the main driver behind the budget deficit was the declining enrollment in the district, and that special staff requests were a minor contributing factor.

McNeff also shared updated numbers for the projected budget deficit for fiscal year 2027 and 2028, which decreased to $137,931 and $373,933 respectively. McNeff said the decreases came as a result of full-time employee reduction through cutting a part-time high school Spanish teacher, a full-time high school art teacher and one elementary paraeducator.

“Class sizes, again when we look at numbers, we try to figure out if we need that. We’re seeing a little less of a requirement in higher-ed to have a foreign language. It’s still nice to have, but our numbers just aren’t where they need to be for that. I know we talked a lot about the art teacher. Both of the individuals who were excellent and could have offered it to either one of them, had accepted jobs. We wanted to ask faster, but we didn’t want to hire a position with the low numbers of requests that we had,” McNeff said. “I still think we need more electives for our high school kids but at this point I don’t think it makes sense to fund that.”

Other reductions included reduced mental health therapy, which previously had been funded by an expired grant, and reduced teacher budget requests. McNeff also identified a 3% increase in health insurance premiums which will cost the district $138,688 in fiscal year 2027.

“It’s a declining enrollment problem. I think it’s important that we show we’re at the end of doing what we can do by cutting costs and programs and reducing staff. If we want to maintain these programs and avoid more severe cuts, then we need to support the mill levy increase,” McNeff said.

School board president Dustin Hager asked McNeff if the reassignment of certain staffers discussed at a previous meeting was still in the cards, saying feedback from members of the public has left him apprehensive about the mill levy increase.

“Of the people I have heard from, if that subset of people represents the folks that will show up at the ballot box to vote, we’re going to have a very difficult time getting this passed. I’m worried if we don’t do some budgetary things on the front end, if this doesn’t pass, how we’re going to shake it out on the back end,” Hager said.

Hager acknowledged the individuals he has spoken to could represent a minority point of view, but said he was shocked by the number of negative comments regarding the district’s financial situation. Hager said that the numbers could improve in a year, but that at this time it appears challenges exist with some people.

McNeff provided the board with a timeline for a survey of staff, parents and property owners, which will arrive in mailboxes the week of July 20. The deadline for survey responses will be July 31, with a final report of its findings to be delivered to the board at its Aug. 11 meeting, where the board will make the final decision on whether to go forward with excess mill levy election on Oct. 14.

The discussion then veered toward strategizing plans for communicating the facts to quell misunderstandings in the public about why excess mill levy is needed, with Hager saying the district was already starting from behind.

To that end, McNeff explained the reasoning behind having the referendum on the excess mill levy in its own election rather than the June primary election, noting there was a cost savings from the district operating the election itself and allowing for more time to educate the public on the issue.

The board then voted to approve a resolution and notice of election.