Manitowoc board hears proposed 2025–26 budget; approves preliminary levy, staffing and capital plans

Nate Milke, a business-department staff member for the Manitowoc School District, presented a proposed budget for the 2025–26 school year at a public budget hearing, outlining a reduction in general fund (Fund 10) spending driven by staffing “rightsizing,” increased transfers to the special education fund (Fund 27), and the addition of referendum debt (Fund 39) to the district levy.

Milke told the board the budget is a set of projections and that the state will provide a detailed spreadsheet the next day that typically makes revenue and equalized-aid numbers more concrete: “Nothing is set in stone,” he said, urging the board and public to treat the proposal as the best available estimate ahead of state reporting.

The proposal packages the district’s operating needs with new debt service from last year’s $25 million facilities referendum. Milke said the district has issued part of the referendum proceeds and will issue additional debt on April 1 to help fund planned capital projects; those project receipts will flow through capital funds (Fund 49 for checking-like disbursements, Fund 46 for longer-term commitments).

Nut graf: The budget presentation and follow-up votes set the district’s preliminary fiscal course for 2025–26. Key changes the board discussed and approved include lower Fund 10 personnel costs after staff reductions, larger transfers into Fund 27 for special education services because of rising special-education needs, and the addition of Fund 39 debt service to the levy calculation. The board approved the budget as the district finalizes state aid figures.

Most important figures and changes - Fund 10: Milke credited staffing “rightsizing” with a notable decline in salaries and employee benefits, which make up roughly three-quarters of the general fund budget. - Fund 27 (special education): The district plans a larger operating transfer into Fund 27 to meet students’ special-education needs. Milke said the state indicated special-education reimbursement had increased; the district projects state reimbursement will result in roughly $5.126 million in aid for the district (an increase of about $1.5 million compared with last year). He said the state has said it will reimburse near 42% but the district expects closer to 39–40% when all numbers settle. - Fund 39 (debt): Last year’s $25 million referendum adds Fund 39 debt service to the levy calculation going forward; Milke said the district had $14 million drawn and would issue about $11 million more in bonds on April 1 to access remaining referendum funds. - Food service: The district’s food service program ran a near-$200,000 operating loss last year and projects a similar deficit this year; the administration said greater student participation and program pilots (afternoon meals at Jefferson and Washington) aim to improve reimbursements. - Levy and mill rate: The district proposed a roughly 3% increase to the total levy while under-levying about $3 million compared with its allowable limit. Because equalized property values rose from roughly $4.0 billion to $4.5 billion, the estimated mill rate would fall from about 7.05 to roughly 6.55 despite the levy increase.

Board actions and formal outcomes - Approval of the 2025–26 preliminary budget: The board approved the proposed budget as presented. The motion passed on a roll-call vote with the following recorded aye votes: Christopher Abel, David Bowman, Biff Hansen, Anne Holson, Mary Louphy Blanick, Keith Shaw, and Gary Trask. (Roll-call recorded in the transcript.) - Personnel: The board approved adding two paraprofessional special-education staff positions to support two newly enrolled students who require one-on-one assistance. Outcome: approved (vote tally not specified in the transcript). - Handbook and policy housekeeping: The board approved editorial updates to the staff handbook submitted by the personnel committee. Outcome: approved (vote tally not specified in the transcript). - Policy 0144.5 (board member conduct): The board debated language changing “should be avoided” to “are prohibited” in the second paragraph. A motion to revert to the original phrasing failed; the updated policy as proposed was then approved by the board (final approval recorded; vote tally not specified in the transcript).

Why this matters: The approved preliminary budget sets tax levy assumptions and program priorities while the district finalizes state aid figures. The special-education transfer and the way referendum debt is added to the levy will affect how the district reports its mill rate and how taxpayers compare local rates with neighboring districts. The food-service shortfall and the district’s pilots to increase participation may change operating results if participation grows.

What’s next: Milke said staff expect a state spreadsheet the following day that will firm up equalized aid and revenue-limit numbers; the board will finalize levy-setting at a subsequent meeting. The district also expects to issue additional referendum debt and to continue monitoring special-education reimbursements as state numbers are finalized.

Votes at a glance (formal outcomes reported during the meeting) - Preliminary 2025–26 budget: approved (roll-call ayes recorded: Christopher Abel; David Bowman; Biff Hansen; Anne Holson; Mary Louphy Blanick; Keith Shaw; Gary Trask). - Add two paraprofessional special-education positions: approved (vote tally not specified). - Handbook editorial updates: approved (vote tally not specified). - Policy 0144.5, Board Member Behavior, Communications and Code of Conduct (final contested language): approved after debate (vote tally not specified).