Sun Prairie finance director previews 2025–26 draft budget, holds $1 million for staff compensation

Phil Wright, director of business and finance for the Sun Prairie Area School District, presented the district's first draft of the 2025–26 budget in a screencast and said the plan is built on assumptions "as of June 12," adding, "nothing has been decided."

The draft balances the general fund at $162,400,000 and is based on a $325 per-pupil revenue limit increase assumption, a 6.6% ($4,000,000) increase in equalized aid and other projections that Wright said could change once the state budget is finalized. Wright emphasized the district will update the budget after the state's July and October estimates.

Why this matters: the draft affects staffing, class offerings, the levy and projected mill rate, and relies on referendum dollars approved Nov. 5 to fund expansions and pay-as-you-go capital transfers. Wright said special education costs remain a major pressure: the district plans to transfer about $19,000,000 from the general fund to cover special education expenses above state and federal reimbursements.

Wright said the district is using referendum proceeds approved by the community on Nov. 5 to finance several items: transportation for dual-language immersion (DLI) students ($100,000 estimated), expanded dual-credit access at the Madison College STEM Academy (approximately $400,000 over the next couple of years, partially offset by students leaving district staffing), shuttle service between East and West high schools ($12,800) and two additional high-school staff (roughly $160,000 total). He noted the district is also "holding $1,000,000 in budget accounts for compensation" related to potential health insurance renewals and a pending compensation study for support staff and administrators; any increases would come to the school board prior to implementation.

Enrollment and staffing: the budget uses a three-year rolling average membership of 8,324. Wright said the district's preliminary budget assumes a net decrease of eight students based on the University of Wisconsin projections presented to the board in January. He also noted that if school started on the day of his presentation the district would show a current shortfall of about 125 students, but that summer enrollments typically recover. The draft plans an overall increase of 8.65 full-time-equivalent positions for 2025–26, with staffing shifts driven by enrollment patterns (middle school growth), DLI expansion (adding second grade at Northside and Meadowview) and a new 4K program at Horizon.

Compensation and benefits: the school board previously approved a 2.95% base increase for all employee groups; teachers can earn an additional 1.25% for 24 hours of professional development, producing an estimated total average increase for teachers of about 3.95%, Wright said. Health insurance is conservatively budgeted at a 10% increase for the Jan. 1 renewal (Wright described this as effectively a 5% hit to the 2025'6 budget because of timing). Wright reported total health-insurance costs at about $15,800,000, dental at $1,400,000 (no projected increase) and the district share of the Wisconsin Retirement System at roughly $6,300,000 (final rate pending July guidance).

Financial position and levy: the draft shows a balanced general fund (Fund 10) with revenues and expenses both at $162,400,000. The district plans a $12,500,000 transfer from Fund 10 to Fund 30 this year (compared with a $22,000,000 transfer last year) and a debt-service levy of $9,400,000; Wright said that debt levy will grow gradually toward the prior level of about $23'24 million over several years. The projected total levy is $91,200,000, a 5.3% increase; using a 6% assumption for property-value growth, the draft estimates the mill rate would drop slightly from $10.16 to $10.09. Wright stressed these figures depend on the state's final estimates and property-value data.

Other notes: Wright said class sizes are expected to remain within current ranges for about 99% of classes and that the district is not recommending changes to class-size targets for next year. He also described routine FTE reclassifications and transfer-service claims for multilingual and specialized students, which typically fund related staffing. Wright closed by reminding the board of upcoming budget milestones: a public hearing July 28, board action on the proposed budget Aug. 25, the district's annual meeting Oct. 6 to set the levy and adoption of the original budget by Oct. 31 when state worksheets and property-valve data are finalized.

"We will be monitoring the budget and make adjustments as needed," Wright said. He also noted this screencast would be his last as he is retiring and thanked the board and staff for their work.

The presentation included multiple spreadsheet and calendar references; Wright said the budget forecast model and budget calendar had been presented to the board earlier this year and that final budget adjustments will follow state guidance in July and October.