Board reviews preliminary 2025-26 budget as state special-education aid and equalization questions remain

Oak Creek-Franklin Joint School District officials on June 23 presented a balanced preliminary budget for 2025-26 but told the board the plan remains contingent on final state actions for special-education reimbursement and equalization aid.

Blaze, the district’s chief business and finance officer, said the Joint Finance Committee made a motion on June 12 that raised the special-education categorical aid target to 35 percent but cautioned that the appropriation could be prorated if total funds are insufficient. The district’s internal forecast assumes about 37 percent reimbursement; board discussion noted that a mismatch would require shifting revenue assumptions.

Blaze said the district plans to reduce projected special-education reimbursement revenue and increase budgeted open-enrollment revenue to hedge against uncertainty. He told the board that the Joint Finance motion also included increases to private vouchers and to the transfer amount for open enrollment, and that the open-enrollment change could yield roughly a half-million dollars in additional revenue for Oak Creek-Franklin if finalized.

Administrators also highlighted that the proposed state budget did not include an increase in equalization aid tied to the $325 revenue-limit increase; without additional equalization aid the revenue-limit rise would fall mainly on local property taxpayers.

The board will post the budget, then refine figures after the July 1 equalization aid estimate; the district expects to present a final levy and budget at the annual meeting and budget hearing following those updates.

Additional finance notes: the board heard a May financial update showing higher-than-budgeted interest earnings and a large interdistrict open-enrollment payment that arrived in June; staff said June reports will show final variances by object and source.