Sun Prairie School District outlines five-year budget forecast with surplus for 2526

In the heart of Sun Prairie, the School Board convened to discuss the future of education funding, a topic that resonates deeply within the community. As the meeting unfolded, the focus turned to the budget forecast for the upcoming fiscal years, revealing both challenges and cautious optimism.

The district is planning a budget based on a $325 increase per pupil, which is a crucial component of their financial strategy. A significant portion of the budget will be allocated to salary increases, with a proposed 3.75% raise for the 2025-2026 school year, followed by a 3% increase in subsequent years. However, the rising cost of health insurance looms large, with a projected 10% increase for the upcoming year and an 8% increase in the following years. These factors contribute to an overall inflation rate of 2.95% for 2025-2026, which is expected to rise to 3% in the years thereafter.

The board is also considering strategic budgeting practices, particularly regarding Fund 46, which is designated for long-term capital maintenance. This fund could play a pivotal role in balancing budgets over the next few years, allowing for flexibility in financial planning.

As the discussion progressed, the forecast model for the next five years was unveiled. For the fiscal year beginning July 1, 2025, the district anticipates a modest surplus of approximately $511,000, a small fraction of the overall $135 million budget. This positive outlook is largely attributed to the recent referendum passed in November 2024, which aimed to mitigate significant deficits through conservative financial assumptions.

However, the board acknowledged potential challenges ahead. As the referendum's benefits taper off by the 2028-2029 fiscal year, a substantial deficit could emerge, necessitating careful monitoring and planning in the coming years. The board emphasized the importance of transparency and ongoing communication regarding budget forecasts, ensuring that the community remains informed about the district's financial health.

In conclusion, while the immediate future appears stable, the Sun Prairie Area School District faces the task of navigating potential financial hurdles. The board's commitment to strategic planning and community engagement will be crucial as they work to sustain educational excellence in the years to come.