NIAGARA, Wis. — Niagara School District taxpayers will see the school tax rate go down this year under the 2019-20 budget the school board approved this week.

The tax rate is projected at 8.90 mills, or $8.90 per $1,000 of assessed property valuation, down from last year’s figure of 10.6. The proposed tax levy is $1,283,890, down from the unaudited amount last year of $1,493,437.

Officials projected a deficit of more than $300,000, which could drop the district’s fund balance to about $461,645. Total projected revenues are $5,206,678, compared with $5,287,171.30 for the current year. Total expenditures 2019-20 are projected at $5,525,573, $230,000 more than the previous year.

Shawna Lindow, the school’s business manager, said several changes were made to the budget since it was approved at the annual meeting Aug. 19 that increased the deficit spending, including hiring several teachers. The district also lost revenue due to declining enrollment.

State aid revenue was increased but the tax revenue authority decreased, Lindow said.

“It is your best guess and that changes every day,” she said.

Last year the district also faced deficit spending but they ended the year at a lower deficit than anticipated, Superintendent Nate Burklund reminded the board.

“The budget is living and breathing. A lot of things took place last year that made it not as bad as projected,” Burklund said.

The continued deficit spending has had the board and administration discussing a possible referendum for operational expenses and some building repairs, but no timetable has been decided. While a referendum has been uncommon in Niagara, 82 percent of the school districts in Wisconsin have some sort of referendum, either for capital projects, operational expenses or both, Burklund said.

Building studies are being done to see which areas might need replacement or repairs.

In other business, the board:

— Learned school officials who toured the district’s three school forest parcels would like to proceed with select cutting of red pine in the 30-acre third section. The other two areas would not be cut for three to five years. The U.S. Forest Service would mark the trees, contact the loggers and do everything from start to finish, Burklund said. The school would like to try to make it a learning project for students during the marking process.

— Heard a presentation on sharing educational services given by Niagara, Florence, Pembine and Goodman staff at the national school convention was well received. Burklund said he would like to give a similar presentation on all the things Niagara alone offers at the state convention.

Marguerite Lanthier can be reached at 906-774-3500, ext. 242, or mlanthier@ironmountaindailynews.com.