Madison School District announces soft spending freeze as $440,000 shortfall looms

The Madison Public Schools Finance Committee was told the district faces a projected deficit of about $440,000 for the current year and senior staff announced a temporary "soft freeze" on nonessential purchases to limit further spending.

Dr. (presenter) told the committee the shortfall stems mainly from higher-than-expected special-education outplacement costs (about $245,000) plus roughly $120,000 in snow-related expenses and approximately $15,000 in repairs and maintenance overages. "If nothing changes ... we would trend towards $245,000 of cost beyond," Dr. said when describing the special-education projection. He added one remaining state payment for excess costs could reduce the burden.

The district has a $350,000 special-education reserve, which Dr. said leadership prefers not to draw down unless necessary because it could cover only a small number of additional placements. He described a $50,000 emergency maintenance fund that was shifted to snow response this year and warned the repairs-and-maintenance account showed a zero balance as of March 5; facilities staff estimated a likely $50,000 shortfall there by year-end.

To limit new spending, Dr. said the district has issued a "soft freeze" on purchase orders: principals and departments must secure approval from Stacy or Dr. before committing to nonessential purchases. "We're not able to approve any purchase orders at this time unless there's ... approval from Stacy or myself," he said, while allowing essential items such as food supplies and substitute teachers to proceed.

Committee members asked for clarification on the arithmetic. One member summarized the figures and asked whether they summed to $440,000; Dr. confirmed the tally and noted identified savings of roughly $360,000 that exist before tapping reserves.

Dr. listed one-time and recurring savings that reduce the gap: about $50,000 likely to be unused in utilities this year (partly from last summer's HVAC work), a $20,000 reduction already reflected in next year's budget, and roughly $250,000 attributed to HR savings from vacant positions and staffing changes. He said placement and overtime overages will appear on the consent agenda that evening and that actual costs may lag the projection.

Dr. also warned of a separate operational constraint: a backlog in Chromebook orders. "There's a huge backlog in Chromebook orders," he said, and the spending pause limits the district's ability to pre-purchase devices ahead of the fall, although Aaron has funds in a Chromebook account to place orders when feasible.

What happens next: staff will continue to track expenditures closely, overages will be brought forward on the consent agenda, and the district's public hearing on the 26–27 budget is set for March 31 with a board vote expected April 28.