Merrill Area School District approves 2025–26 budget and tax levy as state aid falls

The Merrill Area School District Board of Education voted Oct. 22 to adopt the district’s 2025–26 budget and certify the tax levy after administrators reported reductions in state shared aid.

Mark Powell, the district’s director of finance, summarized the budget and said the district’s assumed drop in state aid is “about 1000000 dollars” and that another roughly $1,000,000 was removed from earlier projections. He told the board that statewide changes, including expansions of voucher programs and large referendums in Milwaukee and Racine, have reduced the pool of formula funding available to many districts.

The budget presentation showed an increase in equalized assessed value (EAV) — cited as about an 8.48% rise — that helps offset some pressure but does not fully counter the aid loss. Powell and other administrators warned that absent changes in state funding or local action, the district faces multi-year structural pressure on its operating budget.

Board members debated whether a future operating or capital referendum would be needed to stabilize funding. Board member John said passing a referendum does not automatically reduce household tax burden and emphasized the need to communicate clearly with the community about what referendums do and do not accomplish. Members discussed possible long-term facility changes at Prairie River Middle School and directed administrators to return with proposals and options next month.

Paul moved to approve the 2025–26 budget and the tax levy; Mike seconded the motion. The board approved the motion by voice vote. The board plans to continue preliminary facility discussions at the finance committee in December and return to the full board with proposals on facilities and configuration.

Next steps: administrators will present preliminary facilities proposals to the board next month and the finance committee plans a preliminary discussion in December.