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Wisconsin Rapids projects $2.3 million shortfall for 2025-26; district cites declining enrollment and lower special-education aid
Summary
District finance staff told the board the 2025-26 preliminary budget shows a roughly $2.3 million deficit driven by declining enrollment, the end of ESSER funds, low state special-education reimbursement, and rising salary and benefit costs; staff outlined assumptions and said expense reductions and fund-balance drawdowns may be needed.
District finance staff presented a budget update showing the Wisconsin Rapids School District’s 2025-26 preliminary budget is projected to begin with a roughly $2.3 million deficit. The presentation identified the principal drivers as declining enrollment, the expiration of federal ESSER funds, flat or reduced state special-education reimbursement, and rising personnel costs.
Why it matters: the district said about 70–80% of operating costs are staff-related, so revenue shortfalls translate directly into difficult personnel and program decisions. Trustees were told they may need to consider structural reductions, use of fund balance, or advocacy for higher state special-education reimbursement.
Key figures and assumptions presented: - Current-year (2024-25) deficit projection adjusted down from an initial $994,000 preliminary deficit to about $259,000 due mainly to updated health insurance assumptions and other changes. - Projected 2025-26 deficit: approximately $2,300,000 on the district’s assumptions. - Salary increase assumption for budgeting/negotiations: 2.95% (the district used this CPI-based assumption for projections). - Health insurance assumption for 2025-26: the presentation used a planning assumption in the range of 5–9.5% (staff indicated they used 7% as a working figure for budgeting and noted actual rates are not yet finalized). - Special education reimbursement: the district described recent state-level changes and said the district now models reimbursement near 29.16% for planning; administrators noted small percentage-point shifts in reimbursement can change local aid by hundreds of thousands of dollars. - Enrollment trends: the district reported about a 500-student decline over the last eight years while special-education enrollment has grown by roughly 150–175 students in that same period. - One-time and federal revenues (including ESSER) are declining or ending; the district will not have those funds available in 2025-26.
Staff recommendations and options discussed: administrators said they will pursue attrition-driven staffing reductions where possible, leverage grant funds, refine department budgets, and may recommend targeted reductions or a fund-balance drawdown. They also highlighted long-term advocacy goals to increase state special-education reimbursement rates and noted that falling referendum funding (a $2.0 million referendum cited in the presentation) will worsen operating pressure when it expires.
Board and community context: trustees emphasized the district’s role as a major local employer and asked staff to be transparent about proposed reductions. Several trustees noted many other Wisconsin districts face similar budgetary pressures; the board acknowledged that hard choices lie ahead but did not take immediate cuts at this meeting.
Ending: Administration will continue refining budget assumptions and will bring recommended actions or options to the board in coming weeks. Staff said they plan to continue regular updates as negotiations and state budget actions clarify revenue assumptions.
