Carlton plans for worst case, construction continues in Wrenshall

Superintendent John Engstrom pressed hard and Carlton school board members pushed back. In the end, they seemed to have come to some clearer idea of what the district's future might look like, consolidation with Wrenshall or not.

It was an interesting yin and yang Monday night as the new superintendent gave his take on the state of the consolidation process and information he'd like to acquire before moving forward. He also urged the board to plot its course should no bonding money come from the state this year, which would effectively shut down the consolidation process.

Engstrom said "I'm not trying to pour cold water" on consolidation but he wanted to look into some numbers regarding the finances of both districts. He said a consolidation is no different than a company merger, meaning all sides need a proper "vetting of financials."

He said he wants to know why Wrenshall's annual fund balances continue to ebb despite a fairly stable student population each year. He said he also wants a clearer picture of how a consolidation will affect taxpayers in both districts.

Engstrom said Carlton has obvious problems in retaining students who live in the district. Just 40 percent of potential students attend Carlton schools. The majority choose adjacent schools. He said Wrenshall does a better job with residents but has boosted enrollment with students from other districts who open-enroll. He said relying on those outside forces can be "tough to maintain."

Engstrom asked the board, which was meeting as a committee of the whole for discussion only, to vote at its regular monthly meeting Monday for a "financial impact study," comparing what residents pay in taxes now compared to what they should expect to pay in a consolidated district.

He said a study "absolutely has to happen."

The financial advisors for the district have provided rough figures but nothing set in stone because much could change during the process.

Down the road in Wrenshall, board members met for their regular monthly meeting. They rejected the idea of spending more money on a consolidation study before the legislature decides on the state funding that could pay for much of what it would cost to shore up schools and grounds in both cities to accommodate a consolidation.

Janaki Fisher-Merritt said he'd rather wait to see what happens with the bill in the legislature. The measure allowing for state consolidation money was introduced in the house and senate this week as the state legislature gathered for the second special session of the summer to find ways to pass a tax bill and bonding bill. Both have been overshadowed by COVID-19 pandemic responses and new laws about policing following the Memorial Day death of George Floyd in the custody of Minneapolis police officers.

Should the bill pass before the end of August, Carlton and Wrenshall voters could see bonding for consolidation on the November general election ballot.

Engstrom, in Carlton, said getting a number about yearly tax impacts in a consolidated district is information for voters. "We need this number," he said. "We need to be very open, warts and all."

It wasn't clear by Wednesday if Carlton would include an agenda item Monday to vote on a tax impact study that Wrenshall doesn't want right now. Engstrom said the studies would cost about $3,000 split between the districts.

Engstrom moved on to long-term planning should consolidation not materialize, either because of no state funding or voters rejecting it. The new superintendent repeatedly told the board that it needed to make some difficult votes on what it considers viable options for the district if it should have to keep going on its own.

Board members audibly sighed, saying they've talked over issues repeatedly with no real agreement on what the district might do without consolidation.

On Monday, the board will vote in and vote out options under the scenario that no state funding bill passes:

• Have a vote on consolidation with voters paying for it without state help

• Have a public vote to consolidate but wait for funding

• Board votes for consolidation but waits for funding

• Board votes to move on from consolidation

• Everyone waits for state funding to restart consolidation process

If state funding does come through this summer, but the public votes to squash consolidation - something a survey last winter showed was unlikely - the Carlton board would face another set of options:

• Expand to a K-8 school at South Terrace and partner with a school district to take care of high school students

• Keep things in place and work to gain more students and stabilize populations

• Dissolve the high school knowing it would be virtually impossible to bring a high school back in the future

• Wait

One driver in the consolidation process has been the idea of Carlton County purchasing the current high school so it can build new jail facilities adjacent to its current campus.

School board members said the county's interest could wait, and shouldn't be part of any drastic decisions the board could make. The county is also waiting on the legislature and a bill (held up) that would allow it to use sales taxes in the county to pay for the new jail.

All of the "consolidation or not" options will be discussed at the board meeting Monday, which takes place online at 7 p.m. Members could vote some options out of existence, Engstrom said, where that option could not be brought up again.