MMSD projects roughly $11.6 million draw on general fund for 2025–26; board hears requests for early college expansion and insurance increases

Madison — The Madison Metropolitan School District’s finance team told the Board of Education on June 9 that the preliminary 2025–26 budget will include updated estimates that, together with new program asks, increase the projected draw from the general fund compared with the figures discussed in May.

Bob (district finance staff) summarized the key changes and drivers. He said staff plan to use conservative assumptions for state aid for the preliminary budget and will update estimates as the state and fall enrollment counts are finalized. "This is the projection, as a reminder, it shows about a $40.39 million increase in terms of the total revenue limit picture in 25–26 compared to '24," Bob said in the presentation of revenue-limit projections.

New or refined budget items presented to the Board included: - Building-based substitute teachers: staff referenced a previously approved Board-level motion to create 10 new FTE building-based substitute teachers at an estimated cost of about $1.2 million. - Early college expansion: Cindy (district staff) asked the board to consider an $850,000 investment to expand early-college academies and seats. Cindy said the district currently operates an Early College STEM Academy (200 students), an early-college education academy (about 10 students) and other programs that allow part-time college coursework; she said 61% of 2023–24 graduates earned at least some college credit. The ask covers tuition increases at Madison College and seats for additional academies including biomedical and running-start liberal-arts pathways. - Property and casualty insurance: Rachel (risk/finance staff) told the Board the district’s property and casualty premiums are rising; she cited an estimated total premium increase of roughly $570,000 and highlighted several line items including a 9.8% increase in property insurance, roughly 20% increase in general liability and about 18% increase in auto premiums. Rachel noted the market required the district to secure excess educators’ legal liability coverage from a different carrier, which changed how premiums are presented. - Workers’ compensation and claims: staff said they expect additional workers’ compensation claim costs (self-insured layer) projected at about $1.9 million above the baseline.

Budget impact and tax-rate projection Staff told the Board they revised equalized value projections after the City of Madison assessor published updated 2025 values. Bob said the district’s projected total property value rose and that the district’s mill rate estimate is now about 10.24. Using the assessor’s projected average home value of $480,300, staff estimated an annual tax bill increase of about $729 compared with last year’s tax bill on that average home.

What’s next Bob said the preliminary budget will be presented for the board’s June vote and that staff will continue to refine state aid, enrollment and final insurance numbers. He said the district continues to carry contingency buckets in budgets and will update monthly reports as construction and capital spending progress.

Votes at a glance - Motion to approve minutes from the May 12, 2025 meeting (mover not specified in the transcript). Board member Mulder called the voice vote; speakers recorded "Aye" and the chair stated "Motion carries." The motion was approved.

Ending: Staff will present the preliminary budget for a vote at the June meeting; final state aid, fall enrollment counts and insurance invoices will inform revisions ahead of the final budget vote later in the year.