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Holmen district proposes 0% base-wage increase for 2025-26 amid $2.5M deficit; longevity and degree stipends recommended
Summary
District leaders recommended no across‑the‑board base wage increase for 2025–26 because of a projected $2.5 million general fund shortfall, but proposed limited supplemental payments for longevity and educator degree stipends totaling about $69,000 in payroll cost.
The Holmen School District presented a recommendation on May 12 that base wages for 2025–26 remain at 0% while allowing targeted supplemental increases for longevity and advanced-degree stipends.
District administrators told the board the projected general fund deficit for 2024–25 is about $2,500,000 and that wages make up roughly 75% of district expenditures. "I just want people to remember that the wages actually make up our largest portion of our budget," a presenter said during the board discussion, noting that even modest wage increases would materially widen the deficit.
Why it matters: administrators said ongoing wage increases compound over time and would quickly reduce the district's fund balance. The presentation showed a fund-balance goal of 26.3% of general fund expenditures and scenarios projecting the fund balance would fall below that level within a few years without budget changes.
Details of the recommendation: the board was presented with a 0% base-wage recommendation for all employee groups for 2025–26. Separately, district staff proposed honoring existing longevity payments and limited educator stipend increases: longevity supplements of about $28,718 split between hourly staff and administrators/directors, and expanded master's-degree stipends (including adding occupational therapists) bringing educator supplemental costs to about $31,000. Accounting for employer taxes (FICA and WRS), staff estimated a total 2025–26 budget impact of roughly $68,926 for the targeted supplements.
Board and staff context: presenters told the board they are pursuing nonwage measures—attrition, route and boundary changes, and other cost-control steps—to reduce the structural deficit while continuing to explore nonmonetary ways to show staff appreciation. The district noted state budget uncertainties (including pending per‑pupil allotments) and federal funding unknowns that could affect the final budget.
Next steps: the wage recommendation and related handbook changes were described as items to appear on the board's May 27 agenda for formal consideration. The board did not vote on base wages at the May 12 meeting.
Ending: district leaders asked the community and staff to watch upcoming budget updates and said any proposed changes to employee benefits or stipends would be returned to the board for approval.
