Shorewood board approves preliminary 2025–26 budget amid state-aid uncertainty

The Shorewood School District board voted to approve a preliminary budget for the 2025–26 school year after a presentation by district staff that highlighted revenue assumptions, expense drivers and fiscal risks.

District staff member Heather presented the two-page preliminary worksheet and accompanying narrative, explaining that the property tax levy remains the district’s largest revenue source and that state aid remains uncertain until July and again in October. The budget assumes an average salary increase of 2.95% and identifies a net additional salary investment of $282,000. Other major line items cited included substitute-teacher costs (~$500,000), open-enrollment tuition payments (about $300,000), property insurance ($273,000), electricity ($235,000) and outsourced custodial services ($175,000). Heather also reported the district’s outstanding principal balance on debt at about $55,215,000.

Board discussion focused on the district’s exposure to changes in state aid, the revenue limit methodology, and how enrollment dynamics are informing both short- and long-term planning. Heather said the district expects some offset when students remain through tuition waivers or open enrollment but noted the board will finalize numbers after state reports in July and the official October equalized property valuation.

The motion to approve the preliminary budget worksheet and the narrative passed by recorded voice vote: 4 ayes, 1 nay. Board members said they expect additional refinements over the summer and emphasized the financial sustainability task force that staff has proposed as a next step.

The board is scheduled to review final figures as state aid and enrollment data become available ahead of the annual meeting.