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KUSD warns of state aid loss, federal grant freeze; board urges delegation to secure withheld funds
Summary
District staff told the board that DPI's July 1 estimates showed about $7 million less in equalization aid for KUSD and that federal FY25 title grants remain frozen. The board passed a resolution asking Wisconsin—s congressional delegation to press the U.S. Department of Education to release the funds.
Kenosha Unified School District officials warned the board on July 22 that a July 1 Department of Public Instruction aid estimate could reduce district equalization aid by roughly $7 million compared with last year and that several FY25 federal education grants remain frozen at the U.S. Department of Education.
During an informational budget update, district finance staff described several mechanics of the new biennial state budget: a $325 allowable per-pupil revenue-limit increase, changes to special-education reimbursement formulas and a July 1 DPI aid estimate that placed KUSD in a lower aid position. The presenter said that because the biennial budget did not increase the pot of equalization aid, districts will see different effects based on property values and enrollment; the July 1 estimate for KUSD was approximately $7 million less than last year.
The presenter also summarized special-education changes in the state budget: an increase in targeted "high-cost" special-education reimbursement percentages (which district staff cautioned affect a small number of students) and a higher stated special-education reimbursement percentage that may not be fully funded due to the state's "sum-certain" budget approach. Finance staff warned that while new state numbers provide some additional revenue, the combination of revenue and proposed expenditures gives the district a projected budget shortfall in the neighborhood of several million dollars, and that tax-levy pressure could follow even without local policy changes.
Separately the board discussed a federal funding issue: the U.S. Department of Education had notified states that FY25 awards for Title 1c (migrant education), Title 2a (effective instruction), Title 3 (English learner instruction), Title 4a (student support and academic enrichment) and Title 4b (21st Century Community Learning Centers) were not yet released pending departmental review. District staff estimated the withheld funds would amount to approximately $1.6 million in planned supports for KUSD.
In response the board unanimously adopted a resolution urging Wisconsin—s congressional delegation to press the U.S. Department of Education to release the withheld FY25 funds, requesting clear communication and consideration of legislative or administrative remedies to prevent future delays. The resolution named U.S. Senators Tammy Baldwin and Ron Johnson and Representative Bryan Steil as recipients.
District staff said they will continue to update the board monthly as DPI—s October aid figures and federal grant determinations evolve. The immediate budget risk is the timing and magnitude of state and federal funds and how they interact with local staffing and contract commitments.
