The Oshkosh School Board has admitted to intentionally underestimating expenses in their budget, leading to a projected $2 million deficit this year. Executive Director of Business Services Drew Niehans revealed that the district’s transportation budget does not account for a built-in 3% annual increase in their contract with Lamers, resulting in a significant shortfall.

Underestimation of Expenses

Niehans justified this practice by stating that the school board must approve a balanced budget by state law, and underestimating expenses is the only way to achieve this. However, this approach has raised concerns about the district’s financial management and transparency.

The revelation comes at a time when the Oshkosh School Board is trying to regain the trust of residents following a scandal involving fake social media accounts and a failed attempt to purchase properties for a new school. The district’s financial woes are also mirrored in other parts of the state, with the Milwaukee School District recently reporting a $46 million deficit.

The Milwaukee School District’s deficit was reportedly a surprise to district officials, who were not expecting to run a deficit last year. In contrast, the Oshkosh School Board’s intentional underestimation of expenses has sparked concerns about the district’s ability to manage its finances effectively.

Original reporting: WHBY (Appleton) — read the source article.