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MMSD board adopts $796.5 million preliminary budget; CFO says fund balance drawdown smaller than projected
Summary
The Madison Metropolitan School District Board of Education on June 23 adopted a $796,489,800 preliminary budget for 2025–26 and approved preliminary tax levies by fund, with staff projecting a smaller-than-budgeted fund-balance drawdown for fiscal 2024–25.
The Madison Metropolitan School District Board of Education on June 23 adopted a preliminary 2025–26 budget totaling $796,489,800 and approved preliminary tax levies by fund to permit short-term borrowing and to set the path for final fall certification.
Bob (district finance lead) told the board the district had budgeted to draw $22 million from fund balance for fiscal 2024–25 but now expects the actual drawdown to be closer to $12 million because of unfilled positions and unexpected revenues such as tax incremental district (TID) closures and energy rebates. He cautioned the figures are preliminary and that official trial balances will be available August 1 for audit.
The board also approved preliminary tax levies by fund, including a general fund levy of $404,700,448 and other levies for referendum debt service and capital; the board said amounts will be updated in October for final certification. The board’s recent policy change set an operating fund balance target range of 12–18 percent; staff said the proposed 2025–26 budget still keeps the district within that range.
Board members and staff noted a structural mismatch between state revenue growth and district cost pressures. “We go forward with about 2% revenue increases when our cost increases about 5%,” the finance lead said, describing a longstanding funding gap that will require periodic use of fund balance or future revenue measures unless state funding changes.
The board approved the preliminary budget and levies unanimously. Members asked for more granular school‑by‑school allocation detail in future reports and received commitments from finance staff to supply that information.
The budget motion covered multiple funds: general, special education, referendum debt service, capital maintenance, capital referendum, food service and community services. Board members said they will review final numbers and levy certification before the November deadline.
