The Waunakee School Board on Monday approved the third draft of the district budget, a plan officials say reflects both a historic increase in some state school funding and a redistribution of aid that raises local property-tax obligations. The draft presented to the board shows a 10.4% increase in the school tax levy compared with last year.

The budget discussion focused on two linked developments: the biennial state budget’s increases in some school revenue streams and a re‑distribution of state equalization aid that reduced the district’s aid compared with earlier estimates. “The first thing to know about the state budget … is it’s one of the most significant increases in spendable revenues that we’ve seen in public schools for a very long time,” Steve Neli, a district staff presenter, told the board. Neli said the package includes a $325-per-student increase in the revenue-limit formula and larger special-education categorical aids.

Why it matters: school finance technicalities shifted where the new money comes from. Board presenters told members the $325-per-student increase is being funded on a statewide basis by local property taxes because there was no net increase in state equalization aid. As a result, the district’s budget model saw a swing of roughly $1.9 million from earlier estimates. “What you see on the screen for state equalization aid for Waunakee is a $1,900,000 change from what we had assumed in the second draft of the budget to the third draft of the budget,” Neli said.

The draft also reflects higher estimated reimbursements for high-cost special education and higher special-education categorical aid. The presenters listed several specific revenue-line increases between the second and third drafts: open-enrollment revenue rose from about $2.7 million to nearly $3.1 million, high-cost special-education aid rose from roughly $375,000 to $775,000, and special-education categorical aid was revised from about $3.5 million to $4.2 million.

Board members and staff discussed how the additional revenues could be used. The budget team recommended boosting the contingency fund, restoring annual contributions to the district’s post-employment benefit (OPEB) trust, and increasing the budget for termination/separation benefits and legal services. The third draft also includes a $100,000 proposal for transportation to better serve McKinney‑Vento (students experiencing homelessness) placements and to reduce reliance on an expensive external contract.

Alternative‑placement proposal included: staff presented a plan to create a district-run alternative‑education placement to serve students who otherwise require expensive out‑of‑district contracts. Tiffany (district staff member) estimated alternative-placement contracts can cost $50,000–$150,000 per student; the district’s internal program would start small, with one teacher and some existing paraprofessionals, and was presented as a lower‑cost option to serve five students projected for the coming year.

Next steps: the board approved the third draft and will present it at the annual meeting in August. District staff said they will bring options for lowering the levy to a board workshop in August and will use state property and equalized value reports in August and October to refine levy projections.

No motions or amendments beyond approval were recorded; the vote on the third draft passed on a voice vote.