Oshkosh District Budget Shows Increased Deficit Amid Rising Special Ed and Health Costs

The Oshkosh Area Board of Education is grappling with a growing budget deficit, as highlighted in a recent meeting on August 14, 2025. The district's budget variance report indicates that the deficit has increased beyond previous projections, raising concerns about the structural integrity of the budget moving forward.

The board discussed the implications of state revenue, which is expected to rise by only 2.8%—a figure that falls short of the Consumer Price Index (CPI) increase. This discrepancy contributes to ongoing structural challenges, as the district's expenses, particularly in special education, continue to rise. However, there is some relief anticipated from increased special education reimbursements, which may help mitigate the deficit.

In terms of health plan expenses, the district reported a significant reduction over the past three years, with costs decreasing by 13.6%. This positive trend is noteworthy, especially in a climate where health costs typically rise. The board is optimistic about maintaining a stable budget for the health plan in the upcoming year, despite previous fluctuations.

Another pressing issue discussed was the fund balance, which has dipped below the 12% minimum set by district policy. Board members emphasized the need for intentional budgeting strategies to rebuild this balance in future fiscal plans. A proposed mechanism for tracking progress towards this goal will be integrated into monthly budget variance reports.

The meeting also touched on the complexities of transporting homeless students, which has led to budget overruns. The district is legally obligated to provide transportation, even if students are located outside of Oshkosh, complicating logistics and costs.

As the board prepares for further discussions in upcoming meetings, there is a clear recognition of the need for strategic planning to address these financial challenges. The focus will be on ensuring that the budget remains sustainable while meeting the needs of all students in the district.