Elkhorn board adopts 2025–26 budget, opts for partial Fund 39 paydown to limit near‑term tax impact

The Elkhorn Area School District board voted Oct. 27 to adopt the 2025–26 district budget (option 2) and to certify the related 2025–26 property tax levy. After staff reviewed changes in state aid, resident and open‑enrollment counts, and projected revenues, the board chose a partial application of Fund 39 funds to debt service that staff said lowers this year’s school‑tax increase compared with a full payoff option.

District business staff told the board that state equalization aid declined materially for many Wisconsin districts this year and that the district’s resident membership decreased by 39 students; open‑enrollment figures changed as well. The business office presented two Fund 39 scenarios: (1) apply all available Fund 39 funds to accelerate payoff of district debt (larger short‑term levy impact but interest savings over multiple years), or (2) apply a partial paydown and keep the debt‑service levy closer to the minimum payment for this year to reduce immediate tax impact.

Board discussion centered on balancing long‑term interest savings against near‑term affordability for residents. Multiple board members expressed support for option 2 (partial paydown) on affordability grounds and noted the board could revisit a more aggressive payoff next year. After the discussion, the board adopted option 2 and certified the property tax levy as read on the record. The budget adoption and levy certification were approved by roll call vote.

Business staff said the district will continue to monitor revenues and expenditures and that the board will receive ongoing updates. Staff also noted the district’s ongoing debt schedule and that the partial approach preserves flexibility to increase debt‑service levy levels in a future year if the board elects to accelerate payoff.