Board reviews preliminary 2025-26 budget scenarios, approves 9% base wage increase for staff

The West Allis-West Milwaukee School District Board of Education reviewed preliminary 2025-26 budget scenarios and projections during a workshop and approved a 9% base wage increase for all employee groups during the meeting on April 14, 2025.

The workshop, presented by district finance staff, outlined three scenarios for next year’s general fund depending on state action: a conservative “rollover” case that assumes only the statutory per-pupil increase of $325, a mid-range case with improved special education reimbursement, and a more optimistic case if reimbursement rose to historic levels. District staff emphasized that a $325-per-student increase is the current working assumption and that other state actions remain uncertain.

The presentation explained why special education reimbursement is central to the district’s outlook. At present the district receives roughly 33.3% of special education costs as reimbursement; staff described two technical concepts used in state funding discussions — “some sufficient” (the 33.3% guarantee) versus the amount districts actually receive — and said increasing the reimbursement to 40% would yield roughly $875,000 more for this district while moving to 60% would add several million dollars (district staff cited roughly a $5 million change in one scenario). The board was shown fund transfers needed to balance fund 27 (projected at about $12.1 million this year and roughly $14.1 million in a later projection) and how capital and referendum planning affect the mill rate over time.

District finance staff also reviewed fund-level items: debt-service (funds 38 and 39) related to energy-efficiency debt and the recently authorized $70 million capital program; food-service (fund 50) and the ongoing use of the Community Eligibility Provision; and capital-improvement funds (46 and 49). Staff noted the district’s strategy to use fund balances and the timing of debt retirements to limit immediate mill-rate pressure. Presenters said the capital bond interest rate came in near 3.75% (below an earlier 5% projection) and that the district is using higher cash balances to avoid short-term borrowing.

On the levy and mill-rate illustrations, staff presented a worst-case example (no additional state aid beyond the $325 per pupil) that would leave the district balanced but with an increased mill rate; they repeated that an equal-per-pupil state aid increase would reduce mill-rate pressure. The presentation included the projected effect of private school voucher payments on the district levy; staff said voucher-related outflows have historically accounted for roughly 18–20% of the district levy and will remain a line-item of interest to public communicators.

After the workshop, the board considered a formal compensation action. The board voted to approve a one-time 6% adjustment tied to the district’s referendum plan combined with a 3% standard increase (for a total base increase of 9% for 2025-26), a package the administration said was designed to raise starting wages and hourly rates for hard-to-fill roles as well as move teacher and support pay closer to regional comparators. District examples shown to the board included an increase in the starting teacher salary from about $47,500 to about $51,000 and a rise in starting educational-assistant wages from roughly $16.54 to over $18 per hour under the plan. Substitute and long-term substitute daily rates were also incrementally increased in the administration’s proposal.

Board members asked about sensitivity to insurance and utility cost assumptions (staff used a 15% health-insurance assumption and 7% utility assumption) and about how tariff/ supply-chain risk could affect referendum-cost estimates and technology purchases. Staff said iPad refresh quotes were in and the district was working to lock pricing; facility-referendum escalation clauses and bid contingencies will be discussed further in coming weeks.

Before adjourning the public portion of the meeting, the board approved routine consent items (minutes from March 17, an employment summary, and supplementary contracts). The meeting also included routine committee reports, community recognitions and an item to convene in executive session under Wisconsin Statute 19.85(1)(f) to consider a student-discipline matter (the board approved going into executive session by roll call).

The board and administration said they will return to the public record with updated projections after the state’s fiscal numbers are finalized, typically following the Legislative Fiscal Bureau’s mid-May revenue update and any legislative or court developments on state budget items.

Ending: The board scheduled follow-up budget work and a public communications plan on the capital referendum; staff said more detailed budget decisions and staffing allocations will be considered as state aid becomes clearer.