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Proposed 2026–27 Sheboygan Area School District budget shows $704,000 shortfall as state special-ed funding remains uncertain
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Summary
District finance staff presented a preliminary 2026–27 budget with a projected $704,000 deficit under current assumptions and outlined expense reductions and a 2.63% CPI salary adjustment; administrators said state special-education reimbursement decisions may change the projection when the budget is updated in May.
The Sheboygan Area School District on Thursday reviewed a draft 2026–27 budget that currently shows a $704,000 deficit under the district's assumptions, officials said.
"Bottom line, you can see that gets us to a deficit of $704,000," Mark (district staff) told the board after outlining projected revenue, staffing changes and expense adjustments. The preliminary budget assumes special-education reimbursement at 40 percent; state budget discussions could raise that share, which the district said could materially reduce the gap.
District leaders detailed expense reductions the preliminary budget includes: approximately $387,000 from staff turnover savings, an estimated $560,000 from enrollment-driven teacher reductions, consolidation of two principal positions (Jefferson and Cleveland) yielding roughly $78,000, and other administrative and operational reductions. The administration also proposed adding a 2.63 percent CPI inflationary increase for salary cells and several enrollment-driven teacher additions that together create the net budget pressure.
"We are very hopeful we don't need to" implement more severe reductions, Dr. Conrad (superintendent) said, adding that the district will press state leaders on special-education reimbursements: "We're going to keep advocating and hope that those funds come through." Dr. Conrad also noted community support: "The community is going to give away over $4,000,000 in scholarships to our students again this year."
The administration said some line items previously covered by one-time COVID grants — such as licenses and Google Workspace subscriptions — will now be recurring expenses. Mark identified two specific additions: $20,723 for an annual security camera license and roughly $43,001.24 for Google Workspace for Education.
Board members pressed for specifics on staffing transitions and how the district will combine roles to preserve services. When asked whether sale of district property would offset the operating shortfall, administrators said it would not: sale proceeds are one-time funds and cannot be relied on to cover recurring costs.
Administrators plan to update the budget when state actions on special-education reimbursement become clearer and to return to the board in May with revised figures; the board expects to take action in June and adopt a final budget in October by statute.
