Beloit School District previews conservative preliminary 2025-26 budget, cites cuts and limited one‑time reserves

Beloit School District staff presented a preliminary, balanced 2025-26 budget on June 24 that relies on expenditure reductions, limited use of OPEB (other post‑employment benefits) reserves and awaits final state aid numbers before any adoption.

The presentation, given by Stephanie Ellwood, staff member, and introduced by Dr. Garrison, staff member, laid out a conservative revenue estimate, staffing realignments tied to projected membership and a number of expenditure reductions already approved or proposed for the coming year. “The budget that we’re presenting tonight is a balanced budget. It is very conservative,” Ellwood said.

The nut graf: The district presented the package to meet the board’s timeline while acknowledging uncertainty from the state budget process; the presentation emphasized that final state aid and membership counts will not be certified until October and that several large funding decisions remain unresolved.

Ellwood told the board the staff used a three‑year average to project membership at 6,203 pupils (compared with last year’s membership of about 6,276–6,280) and used a projected maximum revenue limit per pupil of $11,655.27 under current law. She described substantial reductions already incorporated: previously approved cuts totaling just over $3 million, additional reductions such as trimmed cleaning services, and no new technology purchases or devices built into the budget for next year. Ellwood said the district incorporated a 1.5% staffing pay increase and kept the monthly staff health‑insurance contribution at 4%.

The presentation noted use of one‑time OPEB reserves as a bridge: Ellwood said the district currently holds about $4,300,000 in its OPEB pot and that proposed transfers would leave “a little over $3,000,000” remaining. She cautioned that OPEB funds are finite and that large or single‑year draws can affect future equalized aid and tax levy calculations.

Board members pressed staff for more detail on charter and voucher outflows. Ellwood said charter and private enrollment increases were modest for 2025‑26 — roughly $236,000 in projected additional outflows — but that overall the district is paying a substantial share of revenue to charter and voucher providers and that funding formulas vary by sector. Ellwood added that state proposals could increase transfers for open‑enrollment students by about $1,578 per pupil in one proposal, producing roughly a $1 million net cost to the district if enacted.

On the state funding front, staff summarized competing proposals: the governor had proposed raising special‑education categorical aid toward 60% funding — an estimate Ellwood placed at about $4 million for the district — while the Joint Finance Committee’s motion would instead produce roughly a 2% increase statewide, about $267,000 for the district under one scenario. Staff also described relatively small proposed increases under “high cost aid” and possible new funding for school mental‑health services, each with widely differing fiscal impacts.

Directives and next steps from the presentation: staff will incorporate the Department of Public Instruction’s July 1 aid estimate, reexamine membership and enrollment counts when registration and the third‑Friday count are final, and return to the board in August with a revised preliminary budget for a vote and again in October with final numbers after state certification. Ellwood emphasized the October 15 state equalization certification date and that October numbers will likely drive final adjustments.

Board discussion ranged from immediate budget mechanics to broader revenue strategy. Several board members suggested pursuing a referendum as the primary durable revenue tool; others proposed exploring donations, business sponsorships, expanded use of Fund 80 for fee‑based adult or family classes, and careful, limited investment of idle funds. Dr. Garrison said the district has reinvested small surpluses this year and will continue to look for additional, sustainable revenue options.

The board did not vote on the budget Thursday. Ellwood reminded members that the August meeting will include a preliminary budget vote and a September budget hearing before finalization later in the fall after state certifications.