District projects operational shortfall after state budget, federal freeze of grants; board warned of tax impact

District finance leaders on July 14 told the Green Bay Board of Education that a combination of state budget choices, an unexpected federal freeze of certain program funds and higher open‑enrollment payments have worsened the district’s 2025–26 operational outlook and will likely increase pressure on local property taxes.

Chief financial staff and Angie Lacombe, director of finance, reviewed the new state biennial budget and federal developments. Lacombe said the state budget included a $3.25 per‑pupil increase in the revenue limit, but there was no increase in equalized aid to offset inflation; the district therefore must levy locally for that increase. Special education reimbursement rose in the state budget to 42% for 2025–26 (45% in 2026–27), but Lacombe said the district will budget conservatively at 39% because prior year distributions have trended lower than the announced level.

Lacombe also told the board that open‑enrollment reimbursements paid to receiving districts increased substantially in the enacted budget — an unexpected change that will add roughly $3.5 million to district expenditures in 2025–26 if enrollment patterns remain steady. That change, Lacombe said, produces a net expense because the revenue‑limit calculation does not fully offset the larger outlay for students who open‑enroll out of the district.

In addition, the district reported it had been notified July 30 by the U.S. Department of Education that some federal formula program funds — specifically Title I‑C, II‑A, III, IV‑A and 21st Century Community Learning Center grants used to support literacy coaches, multilingual staff, social workers and after‑school programs — were temporarily frozen. Superintendent Vicky Beyer and Lacombe said the district’s current plan is to operate as budgeted for 2025–26 while the state and a multistate lawsuit pursue the release of the federal funds; collectively those grants represent about $3.4 million of district budgeting in 2025–26.

Board members and staff discussed the options. Lacombe said the district has already implemented staffing and program reductions over several budget cycles and that closing and consolidating schools, reducing administrative positions and other cuts have been part of prior deficit‑reduction efforts. The district intends to present a final 2025–26 budget for board approval in October; district staff said they will use actual fiscal‑year close numbers and third‑Friday certified counts to refine projections, and they will present a menu of budget options to the board if additional gap‑closing is required.

Superintendent Beyer urged trustees to help communicate the impact of state funding choices to local legislators and the public and emphasized the district’s continuing efforts to protect classroom programming where possible.

The district did not adopt a final 2025–26 budget July 14; administrators said they will return with refined numbers in October and recommended community communications about the fiscal outlook.