Plans to utilize a collection agency to get back more than $80,000 in outstanding debt from families drew mixed reviews from the Shawano School Board.
The board voted 5-3 on Feb. 12 to hire the Waukesha County Collection Division to attempt to collect five years worth of food service, technology and other fees from families. According to finance consultant Cory Kaisler, the district has tried and failed to get the families to pay the district back, and customers of a collection agency have a 25-50% successful collections rate.
There are no upfront fees to hire the collection agency, and it will take 28% on any fees collected. About 70% of the $83,000 in outstanding fees are technology fees caused by lost, broken or damaged devices, according to Kaisler. Food service negative balances account for about $13,000, while the rest — about $10,000 — is a combination of athletic fees and uniforms, classroom and library book fines, damage to school property and parking permits.
Kaisler noted there’s another $16,000 in fees for the current year that could be turned over to the collections agency by the end of the year if not paid.
He pointed out that the food service fees were halted during the pandemic in 2020 by the U.S. government covering the costs of school lunches for almost three years. The district stopped its practice of notifying families of outstanding debt during the pandemic, as well.
“During that time frame, the outstanding fees ballooned a little bit,” Kaisler said. “However, at the end of COVID, the U.S. government stopped covering costs for food services, and we went back to implementing the processes we had before.”
He said the district has tried mailing invoices, making phone calls and sending emails to families alerting them that they owe the schools money, but it has not gotten the job done.
“The district decided we were going to look at other options to collect some of our fees,” Kaisler said, adding that besides the collection agency, district officials considered utilizing small claims court, which was seen as costly and time-consuming, as well as writing off the debt by using the district’s fund balance.
Kaisler noted the collection agency has options the district doesn’t, such as garnishing tax returns, creating payment plans and garnishing pay.
“We really want to work with the person who owes us money to be able to try to collect without it being a financial hardship on them,” Kaisler said.
Board member David Cullen, who voted against the measure, feels the move is more antagonistic than cooperative.
“I think that would create a lot of bad will,” Cullen said. “We’re talking about $80,000, which sounds like a lot of money, but in reality, it’s a drop in the bucket. If I was a parent, and I got a bill for this, I would be ticked.”
Cullen argued that the food service fees might be hard to collect because people might still believe the government is covering food costs, but board member Bobbi Lemerond countered that she received a notice from the district last year saying that the grace period for meal compensation was coming to an end.
Board President Mike Musolff said he wanted to foster a positive relationship with parents but waiving off the debt would be setting a bad precedent, in his view.
“Next year, if people found out we just waived this debt, they’re not going to pay,” Musolff said. “As much as I’d like to say let’s do it, I can’t.”
Kaisler reiterated that most of the debt is related to tech, not food, with money owed for lost and unreturned iPads and other technology. He said there are currently 360 individuals with outstanding debt to the district, with the average debt being $254.
“As we continue to keep going down this road, I’m sorry to say I don’t see this going backwards,” Kaisler said. “Other people have paid their bills.”
Board member Jeana Winslow was another no vote against the collection agency, and she questioned why the fees are in place when families don’t have an opt-out for the technology.
“We require them to pay for them if they’re broken,” Winslow said. “I feel when we are requiring students to use these, I would be one of the parents who would opt out. I’ve said this from the beginning. It’s going to be money, money, money. We require the kids to have these, and stuff happens at school. Students are mean. They break other kids’ iPads. They take their charging cords. It’s not their fault.”
Regarding the food debt, Winslow recommending lobbying the state to cover food service costs fully to eliminate the need to charge families.
“I think we’re going to do more damage to families,” Winslow said. “I just don’t think collections is the way to go.”
Board member Al Pyatskowit was the third vote against the collection agency but did not speak during the debate.
lpulaski@newmedia-wi.com
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