Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Compensation topic
No spam. Unsubscribe anytime.
Business manager says health-insurance savings reduced near-term deficit but district still faces multi-year shortfall
Summary
McFarland business manager reported healthier-than-expected insurance results that narrow projected deficits for 2025–26 and 2026–27 but warned revenues from state budget decisions and recurring referendum funding remain critical.
McFarland School District Business Manager Mr. Mahoney told the board the district’s fiscal position has improved since earlier budget estimates, largely because health-insurance cost trends produced roughly $1.1 million in savings compared with earlier projections.
Mahoney said the district entered planning with a combined planned deficit across the 2025–26 and 2026–27 years of roughly $900,000 ($540,000 for 2025–26 and $362,000 for the following year). He said applying current collective wage-change assumptions and the insurance savings reduces the two-year shortfall to about $570,000, and that the district’s approved compensation changes moved the district closer to county competitive levels while reducing the projected deficit compared with the original estimate.
“Year 2 of a 3 year recurring referendum” is under way, Mahoney said, and he warned that near-term revenue choices are tied to what the Wisconsin Joint Finance Committee and the governor decide in the state budget process. He urged continued monitoring and noted that the district’s remaining revenue uncertainty is primarily at the state level.
Mahoney reviewed other revenue drivers: declining resident enrollment reduces revenue (he cited a projected enrollment decline that reduces revenue by roughly $310,000 for 2024–25), open-enrollment tuition yields about $4,200 less per pupil than resident revenue, and interest earnings and virtual-school revenue are variable. He said the district expects to finish the current year better than earlier forecast, which will shrink the year-one deficit by roughly $250,000–$300,000.
Board members acknowledged the complexity of projecting two-plus years ahead and discussed the importance of communicating to legislators; administrators pointed to public avenues for submitting written comment to the Joint Finance Committee.
The board took several routine fiscal actions during the meeting — including approving the 2025–26 fee schedule and the 2025–26 employee handbook — each by unanimous vote (5–0), measures Mahoney said are consistent with holding costs manageable while addressing staff compensation.
