The Waunakee Community School District budget committee discussed on Nov. 7 whether to offer increased per-student payments to local 4K providers after new state budget language created a separate state-funded 4K option that bars providers from contracting with public school districts in the same year.

Administrators presented a set of budget scenarios showing that, under a conservative base forecast, the district begins 2026-27 with an estimated $302,000 surplus because of increased state special-education funding and passage of the district's operational referendum. But a scenario in which the district stopped counting any 4K students (because all centers partnered with the state) would produce a larger immediate surplus while creating a substantial loss of equalization aid in 2027-28 and later years, shifting costs to property taxpayers.

"Losing the 245 students becomes a significant taxpayer issue in '27, '28," Steve Summers, a district administrator, said during the presentation. He explained that a state's declining-enrollment exemption cushions the first-year revenue loss but that the long-term equalization-aid formula would reduce state aid and increase the levy borne by local property owners.

Administrators identified key factors affecting center decisions: a line in the state budget saying "providers may not participate in the Get Kids Ready if they also contract with a public school district to provide 4K in the same year," an estimated $66 million appropriation for the state program, and uncertainty about how many centers statewide will apply (which would trigger proration of that pot). "By the time they have to let the state know if they're participating, they will have no idea how that $66,000,000 may end up being divided up," Summers said.

The district currently accounts for roughly $7,200 in revenue per 4K student; administrators said providers receive about $3,600 per student from the district under existing contracts. In one illustrative scenario ("Scenario 4"), staff proposed increasing the district payment to providers to $5,000 per student for 2026-27 to try to keep centers partnered with the district. "This is an attempt to build stability for both the school district and the current partners," Summers said.

Board members pressed for additional analyses before making an offer. Members asked for hybrid scenarios (for example, if 50% of centers accept an offer) and requested clarity on capacity at individual centers. Miranda, who identified herself as a provider and owner of a local daycare, noted licensing and classroom-space limits and reminded the committee that parents ultimately decide where to enroll.

Administrators proposed a timeline to present a draft offer to the board in December, gather provider responses, and then return to the board in early January with finalized numbers. Summers said the district needs responses by December to allow planning ahead of the statutory January open-enrollment declaration deadline.

No formal board action was taken on a 4K payment at this meeting. Administrators said they will meet with local 4K providers next week to solicit feedback on payment levels and capacity, run the additional scenarios requested by committee members, and present a recommendation to the full board in December.

Why it matters: The choice by local 4K providers to join the state program or remain contracted to the district would change how the district's student counts are calculated and could shift tax burdens to property owners, even if the district's annual budget shows an initial surplus. The committee's options include making a near-term offer to providers (to preserve enrollment counts and equalization aid), accepting a reduced student count and planning for mitigation, or other hybrid approaches.

Clarifying details and uncertainties: Administrators emphasized that the state's $66 million estimate likely will be prorated if many centers enroll; the declining-enrollment exemption temporarily reduces first-year revenue loss; current district figures (from the meeting) were cited as approximately 245 potentially affected 4K students and a provider payment of $3,600 per student; the $5,000 figure was an illustrative offer that has not been negotiated with providers.

Next steps: Administrators will convene the virtual meeting with providers next week, run the additional scenario runs requested by committee members (including 50/50 acceptance splits and threshold analyses), and return to the board with more detailed options in December.