McFarland electors adopt $23.14 million tax levy after budget hearing

McFarland electors on an annual meeting night voted to authorize a $23,136,017 tax levy to fund the School District of McFarland’s proposed 2025–26 budget.

The motion, offered by school district treasurer Megan Chapman and seconded by Cassandra Dennis, passed on a voice vote with the chair saying the motion “carries unanimously.”

The vote followed a budget hearing in which Superintendent Aaron Turner and staff presenter Jeff Mahoney described a balanced budget reached after a year in which the district anticipated a $390,000 deficit. Turner said the district closed that gap through a combination of increased revenues, including oversight fees from virtual-school enrollments and higher interest earnings, and expense savings such as a new insurance plan and a hiring pause for a diversity, equity and inclusion position. “We were entering this year anticipating having a budget deficit of $390,000 and fortunate that through some increased revenues and decreased expenses we are able to share with you a balanced budget,” Turner said.

Nut graf: The discussion highlighted two long-running financing pressures: flat or falling state aid and rising special-education costs. Mahoney said the district faces higher local property taxes because state funding has not kept up with inflation, and he described specific budget line items that helped balance the books, including $1.75 million from a multi-year operational referendum and roughly $1.7 million in oversight fees related to Wisconsin Virtual Academies that flow through the district’s accounting.

In the hearing, staff summarized key revenue and expense items. Mahoney said the district’s proposed levy represents a 15.04% overall increase, including a 19.6% increase in the general fund levy component. He noted the district manages several major funds: general education, special education (Fund 27), debt service, capital projects, school nutrition and community service. The general fund was presented as balanced at about $82.8 million; Mahoney said roughly $39 million of that supports the district’s brick-and-mortar operations.

Special education was a focal point. Mahoney said special-education spending is approaching $9 million annually, with Fund 27 receiving a $4.7 million transfer from the general fund. He and Turner described the state’s special-education reimbursement as “some certain” — a fixed allocation — and warned that cost increases could outpace the state increase. Turner said special-education costs have risen steeply in recent years and cited that reimbursements have ranged widely; he noted the state reimbursement rate was intended to approach two-thirds historically but was around the mid-40s percent in the most recent budget cycle.

Debt service and capital projects were also discussed. Mahoney said debt service tied to the district’s 2016 referendum will fall by about $700,000 (roughly 14%) in 2028–29; he framed that as a potential future tax relief item for homeowners. Capital projects include ongoing roof replacements at the high school, where staff estimated remaining work of about $6 million after completing $1.3 million this summer and planning another $750,000–$1 million next year. Mahoney described options to extend roof life on some sections with spray-on coatings; he said the district used that method at Wobisa last summer at an estimated $320,000 versus a $600,000 full tear-off for that section.

Food-service and community-service funds were mentioned. Mahoney said the food-service fund had built a fund balance of about $534,000 but that planned deficits in coming years mean the district may need to raise student meal prices around 2026–27 unless circumstances change. Community-service programming is supported in part by a levy of $532,000 for operations, with fees covering the rest; the district also transfers $266,000 to the McFarland Youth Center and pays about $61,000 of the school resource officer cost, splitting the remainder with the Village of McFarland.

During public comment, electors asked for more detail about slides that had not been printed for the audience. Mahoney directed electors to the packet pages where the same information is summarized and offered to provide copies after the meeting.

Ending: With questions answered and no further motions on the budget, electors adopted the levy and the annual meeting proceeded to other agenda items, including governance matters and a separate vote on school board compensation.