Racine Unified adopts FY26 budget, sets $119.17 million tax levy and short-term borrowing line

The Racine Unified School District Board of Education approved the district's fiscal year 2026 adopted budget and certified the 2025–26 tax levy at its Oct. 20 meeting, actions that set the district's revenue authority and the property tax impact for the coming year.

Board approval matters because the adopted budget and certified tax levy determine property tax bills, staffing, capital plans and the district's near-term cash-management options.

Finance staff reported the state budget provided a $325 per‑pupil increase that translated to roughly $5.1 million in additional revenue, all of which flowed through the property tax levy under current state rules. The presentation noted a state special-education reimbursement increase to 42% in statute but staff used a 39% practical assumption to account for statewide higher-than-anticipated expenditures; staff estimated that 39% reimbursement will yield about $5.2 million for the district.

District staff described additional FY26 budget impacts: open‑enrollment tuition rose by $1,140 per pupil even though open‑enrollment FTE declined by about 140; voucher tuition rose by $640 per pupil (with a net 2‑FTE reduction), a 12–14.9% health insurance increase (staff cited a $1.2 million budget impact), and a net staffing change that reduced FTE by 35 compared with the interim budget (the district had reduced 57 FTE at interim and restored 22 of those positions). Staff projected Fund 10 (operating) would end FY26 with a roughly $132,000 fund-balance increase and estimated an operating fund balance of about $66 million, within board policy and Moody's guidance.

The board certified a total tax levy of $119,172,534, comprised of $102,432,050 for the general fund, $9,240,484 for debt service, and $7,500,000 for the community service fund. Staff presented a mill rate of $7.93 — a 35‑cent increase over the prior year — and estimated the levy change would raise a hypothetical $200,000 home's tax bill by roughly $70.

Separately the board approved a resolution authorizing a taxable tax and revenue anticipation promissory note (a short‑term line of credit) not to exceed $10,000,000 to cover cash‑flow needs if required.

Votes: the budget adoption motion and the tax-levy certification each passed on recorded roll-call votes with nine yeses. The borrowing resolution also passed on a 9–0 roll-call vote.

Board members asked staff to clarify the difference between statutory reimbursement rates and actual payments; staff said the fiscal bureau's statewide analysis uses an earlier data cut, and actual expenditures came in higher than projected, reducing the district's share of the reimbursement pool.

No amendments were made to the budget at the meeting.