Beloit School Board reviews preliminary 2025-26 budget with cuts, OPEB transfer and state aid uncertainty

The Beloit School District Board of Education heard a presentation Tuesday on the district’s preliminary 2025-26 budget, including proposed reductions of just over $3 million, a $1,156,000 transfer from the district’s OPEB (other post-employment benefits) trust and continued uncertainty about final state aid.

The presentation matters because final state aid and membership figures that determine the district’s revenue limit are not certified until October, leaving the district to craft a conservative budget now and to revise it later as state numbers become available.

Dr. Garrison, the district superintendent, opened the presentation and asked board members to pause and ask questions during the slide deck. Stephanie Elwood, a district staff member who led the budget presentation, said, “The budget that we're presenting tonight is a balanced budget. It is very conservative.” Elwood said the district used a three-year membership average of 6,203 for planning; actual membership last year was 6,276 and final membership will be set on the third Friday count in September.

Elwood said the budget includes projected per-pupil revenue limit authority of $11,655.27 — which assumes no changes in state law — and reflects conservative spending assumptions, including a 1.5% staffing increase, a continued 4% monthly health insurance contribution by staff, and an insurance-premium increase that was estimated at 10% last spring but came in at 11.6%.

The presentation highlighted a large transfer between the general fund and the special education fund and said the district is using some OPEB trust dollars to shore up the general fund. Elwood noted the proposed OPEB transfer of $1,156,000 would leave a remaining balance of about $3,000,000 in the OPEB trust. She cautioned that OPEB dollars are finite: “We only have $4,300,000 in the pot.”

Board members asked for more detail on membership versus enrollment and the district’s payments to charter and voucher schools. Elwood said the budget estimates $236,000 in increased payments to independent charter and private schools this year, a more modest rise than in prior years. Board members and staff discussed whether the district pays more per pupil to some charters and voucher schools than it receives in state aid; Dr. Garrison summarized the discussion: “In a nutshell, the answer to that question is yes,” while noting the district did not have detailed per-school numbers available at the meeting.

Elwood walked through state-level proposals that could materially affect the district. She said Governor Evers had proposed increasing special education funding from 30% to 60% of high-cost special education costs, which would give the district roughly $4 million; by contrast, the Joint Finance Committee’s motion at the time of presentation proposed a 2% increase this year and another 2% next year — roughly $267,000 for the district. Elwood also flagged a proposed $15.78 per-pupil increase to the open-enrollment transfer-out rate that she estimated would cost the district about $1 million.

The presentation noted the district’s fund-balance policy target of at least 18% unassigned fund balance; Elwood said the district has not met that target in many years and that the only way to rebuild fund balance is to spend less than revenues during the fiscal year. The slide deck also showed the district’s other funds (special projects, debt service, capital projects, food service Fund 50, Fund 80, and the OPEB trust) and included a fund-by-fund analysis.

Board members asked for follow-up information. Elwood said the district will refine revenues and expenditures and update membership estimates before returning to the board in August with a preliminary-budget vote. The timeline Elwood provided: return in August with a more refined preliminary budget for board approval, hold a budget hearing in September, and present a final budget after membership and equalized values are certified in October.

Discussion points included strategies to increase revenue (referendum, local partnerships, and use of Fund 80 for fee-based community classes), possible restructuring and reductions at the COLAC Educational Center, and the district’s ongoing transfer of roughly $10 million to cover special education needs. Several board members pressed staff to produce more detailed numbers on charter and voucher payouts before the next presentation.

Elwood and Dr. Garrison repeatedly emphasized the provisional nature of the presentation. Elwood said several major inputs remain estimates: state equalization aid (July 1 is an initial estimate; final certification is Oct. 15), membership (third Friday count in September), and equalized property values. She said the district will revisit the budget as those figures are finalized.

The presentation generated extensive board discussion but did not include a motion to adopt a budget. The board received the presentation and directed staff to return with more refined numbers in August.