Madison Local board approves FY26 forecast and state-mandated reduction plan after treasurer reports $1.6M shortfall

The Madison Local Schools board on Feb. 17 approved an updated fiscal-2026 forecast and a state-required reduction plan after the district’s finance staff presented projections showing a $1.6 million operating deficit for the year.

Steve, the district treasurer, told the board that revenues for the fiscal year are projected at about $29.8 million and would reach roughly $30.6 million by fiscal 2030, while expenditures fall from about $31.4 million to $29.5 million next year because of planned reductions. "We're showing a debt operating deficit of 1,600,000," he said, and added that a mid-year cash-flow borrowing increased both revenues and expenditures by about $2 million.

Steve attributed the shortfall in part to state budget changes and lower enrollment. He said recent state action reduced the district’s foundation funding by about $633,000 annually and that changes tied to property-tax rules and credits will have further effects. He also told the board the district’s health-consortium premiums rose sharply in the last year, reporting a 19% increase and projecting a 7% increase in future years.

The board voted 5–0 to adopt the forecast and to approve three connected items required by the state: the detailed reduction plan (item 10.2), the narrative explaining the necessity for reductions (item 10.03), and the position-level reduction workbook (item 10.04). According to the presentation, the district’s recovery plan is expected to reduce salaries by roughly $1.6 million over four years and to lower purchase-service costs by about $645,000 per year.

Administrators said the reduction documents will be submitted to the state as required. The treasurer also warned that the district’s reserve balance heading into fiscal 2026 is "just under $21,000," which he described as minimal and sensitive to changes in cash flow; he said the district might need to delay some payments in June if conditions do not improve.

The board’s approval allows staff to proceed with implementing the reductions and submitting required paperwork to the state. No amendments to the plans were offered during the meeting, and the board approved each item by unanimous roll-call votes.