Janesville budget outlook projects $750,000 shortfall; administrators recommend shifting capital maintenance funds to balance preliminary budget

At the May 20 Finance, Buildings & Grounds Committee meeting, district finance staff presented a draft FY2025–26 budget outlook that showed a projected revenue increase tied to the state’s $325-per-member payment but larger projected expenditure increases that together produce a near‑term budget gap.

Finance staff said the district used the state’s $325 per‑member figure to estimate roughly $3,000,000 in additional revenue for the district. At the same time, staff listed projected expenditure increases totaling about $4,700,000. Specific items called out included workforce costs (wages and health insurance), an approximate $100,000 projected increase in open enrollment costs, a roughly $120,000 increase related to hockey, and an estimated $128,000 utilities increase. Staff also said district staffing increases this year are concentrated in special education positions to meet student needs.

Administrators noted a one-time operational benefit: the district recently paid off a Fund 38 debt, freeing approximately $999,000 in recurring operational latitude. After applying that amount the district still faced a shortfall ‘‘just under $750,000,’’ according to the presenter.

To produce a balanced preliminary budget for the July board meeting, district administration recommended shifting identified maintenance expenses (previously planned from Fund 10 capital) to Fund 46. Staff warned this is not a sustainable annual practice; they described the move as a stopgap that would reduce the immediate deficit but would deplete capital maintenance capacity in Fund 46 and require replenishment when state aid or other revenues permit.

Staff discussed state-level uncertainty and timing: the district awaits a biannual state budget and final equalization/aid figures. Staff said special education reimbursement currently sits below 30% and that every 1 percentage point increase in special education reimbursement would yield roughly $150,000 to the district. Committee members discussed the need to consider other expense reductions but staff said staffing and fixed costs limit options large enough to close the gap without using Fund 46.

Administrators outlined the timeline for budget actions: a preliminary balanced budget will be presented to the full board in July (the board also receives equalization aid estimates July 1), a third‑Friday membership count is Sept. 19 and final equalization figures arrive Oct. 15, with final budget adoption and levy certification scheduled for Oct. 28.

Committee members asked detailed questions about CPI‑U calculations used in wage projections; staff described the WERC (Wisconsin Employee Relations Commission) process for the CPI‑U snapshot and provided the district’s current planning assumptions (CPI‑U 2.95% leading to a net budget wage impact presented as about 2.15% in total expenditures). Benefits manager Jamie Brown participated in the discussion of health insurance assumptions.