Sparta Area School District presents 2025-26 preliminary budget; electors approve $15.04 million levy

Sparta Area School District officials presented a preliminary 2025-26 budget Tuesday night and electors approved a $15,035,849 total school tax levy — a recommendation from administration reflecting updated state aid figures — with a corresponding mill rate of $7.17.

The budget presentation, delivered principally by Leah Hauser, director of business services, outlined a $44.1 million preliminary Fund 10 revenue estimate, projected use of fund balance to cover a $430,000 shortfall, and planned additional borrowing tied to the district's recently approved facilities referendum.

Hauser said the district's general operations combine Fund 10 (regular education) and Fund 27 (special education) for reporting and that the district's revenue limit — the state formula that funds roughly 80% of district revenue — will increase by $325 per student statewide. "The state set the size of our cup and they increased all districts' cup by $325 per student," Hauser said, describing why Sparta's local levy must rise when the state did not proportionally increase equalization aid. She added that Sparta will receive $29,982,000 in state equalization aid for 2025-26, a 1.76% increase from the prior year but lower than an earlier forecast presented in September.

The presentation detailed major revenue and expense variables: a decrease in revenue limit FTE of 32 resident students (to 3,019 FTE), the end of a STEM expansion federal grant, carryover and timing changes in federal Title grants, proceeds from an $87 million referendum (with $66 million borrowed in 2024-25 and $15 million planned for this winter), and an increase in salaries and benefits that comprise about 70% of the district budget. Hauser said the district ended 2024-25 with a general fund balance of about $10.6 million (roughly 23% of general expenditures) and expects a 2025-26 ending fund balance of about $10.1 million after planned use of reserves.

On expenditures, Hauser said the budget includes a projected $27.3 million for salaries and benefits, a $4.2 million transfer to Fund 27 for special education (down $600,000 from the prior year because of higher special education reimbursement rates), and planned capital spending from referendum proceeds held in Fund 49 and paid as construction draws occur. She also noted that nutrition services (Fund 50) projects expenditures exceeding revenues despite some meal price increases and changes to the free breakfast program.

The board recommended, and the electors adopted, a total levy to cover the district's revenue-limit levy ($7,035,849), debt service levy (projected $7,320,000), and community service levy ($680,000). Hauser said the mill rate — the districtwide tax rate per $1,000 of equalized property value — remains $7.17, unchanged from the prior year, because equalized property values rose roughly in line with the levy increase.

Votes at a glance: - Adopt 2025 total school tax levy of $15,035,849 (mill rate $7.17). Mover: Todd Wells; Second: Collins Burns Gilbert. Outcome: approved (elector vote; chair announced one opposed). Note: administration revised the recommendation after final state aid certification from the state of Wisconsin. - Authorize transportation to students attending public and specified private schools (Saint John's Lutheran School; Saint Patrick's Catholic School; Highland Dale Elementary School). Mover: Pat McKenna; Second: Dr. David Burnett. Outcome: approved unanimously. - Authorize board to provide textbooks under conditions prescribed by the board. Mover: Pat McKenna; Second: Toby Oswald. Outcome: approved unanimously. - Approve annual Board of Education compensation (president $2,700; clerk $2,500; other members $2,200). Mover: Collins Burns Gilbert; Second: Kyle Lamansky. Outcome: approved unanimously. - Approve reimbursement of travel expenses for board members (out-of-district per diem $125/day up to 3 days per year; $30/day thereafter). Mover: Kevin Riley; Second: Collins Burns Gilbert. Outcome: approved unanimously. - Set 2026 annual meeting for Meadowview Middle School, Tuesday, Oct. 20, 2026, 6 p.m. Mover: Sam Russ; Second: Todd Wells. Outcome: approved unanimously.

The district's budget book and slides with detailed fund schedules, debt schedules, and program budgets are available on BoardDocs in the Board of Education section, Hauser said. Superintendent Sam Russ framed the budget conversation in the context of recent referendum approval and ongoing efforts to maintain reserves while addressing capital and program needs.

Financial context noted in the presentation included: an $87 million referendum approved previously (first borrowing of $66 million completed with a planned additional $15 million this winter); a Fund 39 debt-service fund balance earmarked for future debt payments; and Fund 46 capital trust savings (about $340,000) used as a planning vehicle for long-range capital work. Hauser also described the state's three-tier shared-cost reimbursement system and how Sparta's reimbursement rates affect the district's share of prior-year spending.

The meeting moved from the budget hearing into formal resolutions and votes after public comment, and electors closed the hearing before voting on the levy and related authorizations.