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Holmen finance director presents cautious 2025–26 preliminary budget with $912,000 planned deficit
Summary
Finance officials presented a preliminary 2025–26 budget that assumes a $3.25 per‑pupil revenue increase, flat base wages, a projected beginning fund balance of about $14.97 million and an estimated $912,000 use of fund balance, pending state aid and Joint Finance Committee actions.
Holmen School District Executive Director of Finance and Operations Julie Holman presented a preliminary 2025–26 budget on June 9, describing assumptions, revenue estimates, and expenditure projections while cautioning that state and federal allocations remain uncertain.
Holman said the budget uses conservative assumptions, including a statutory $3.25 per‑pupil increase under the revenue‑limit formula and no base wage increases in the preliminary figures. She noted the district assumed categorical aid would remain at $342 per pupil and that Title I funding would be reduced about 50% for reasons tied to local data.
Key figures Holman presented include an estimated June 30, 2026 beginning fund balance of $14,972,000 (about 26.1% of general fund expenditures), total general‑fund revenue estimated at $56,515,311 and estimated general‑fund expenditures of $57,427,489, leaving a preliminary planned use of fund balance of $912,178. Major revenue components cited were an estimated tax levy near $11,500,000 and state general aid near $38,000,000. Holman said total federal sources were estimated at about $415,739, reflecting an expected drop after ESSER funds expired.
Holman said she is carrying forward estimated WRS and FICA rates (6.95% and 7.65% respectively) and a 5.18% increase in group health premiums. She also noted that the district’s special‑education transfer from the general fund is estimated just under $7.4 million and that the special‑education fund is budgeted at approximately $11,183,000.
On debt and capital, Holman said the district plans to hold the school mill rate at $6.94 by shifting levy between general and debt service where appropriate; estimated principal and interest for 2025–26 were $7,662,000 and estimated indebtedness at June 30, 2026 was $74,375,000. She described Fund 42 as the current construction fund for the $74.75 million referendum projects with an estimated 2025–26 capital expenditure of about $20,000,000 and an estimated combined ending balance in capital funds of roughly $1,900,000, part of which is in Fund 46 (long‑term capital improvement trust) and may be available after a five‑year waiting period.
Holman listed budget risks that include slow enrollment decline, inflation, rising special‑education costs, unfunded mandates and pending Joint Finance Committee action on general aid, categorical aid and special‑education reimbursement. She noted recent news that current‑year special‑education reimbursement would be 30.64%, about $140,000 more than earlier estimates, and that the Joint Finance Committee planned action the following week.
Board members asked clarifying questions about Fund 42 versus Fund 46 timing and use; Holman said Fund 42 holds current construction expenses while Fund 46 is the longer‑term trust and that unused construction funds must either be spent within the referendum scope or transferred to debt service to offset future levies.
Holman concluded that the preliminary budget reflects best available estimates and will be revised as the district receives finalized state and federal allocations. The budget was presented for information; formal adoption will follow required budget steps and public timelines.
