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Kenosha School District officials warn of multimillion-dollar shortfall after state aid deal collapses
Summary
At a committee meeting staff said a proposed state funding package failed in the legislature, leaving the district with an estimated $10.5 million gap in the near-term budget and prompting discussion of an operating referendum, targeted cuts and additional community outreach.
Kenosha School District staff told a committee that a recent state‑level funding deal collapsed, removing expected increases in special education reimbursement and other relief and leaving the district with a multimillion‑dollar shortfall.
The presenter explained the proposal that failed in the legislature would have raised special-education reimbursement to roughly 50% for 2026–27 and increased 2025–26 to about 42.7%. Without that deal the district is budgeting conservatively at about 39% and expects proration that will widen pressure on the current budget.
Why it matters: staff showed a live budget scenario in which about $12.3 million in added expense checks against $1.7 million in additional revenue, producing roughly a $10.5 million net gap. District leaders said enrollment is expected to decline by about 500 students next year, reducing revenue further, while major cost drivers include transportation contract increases, rising health‑insurance premiums and negotiated salary schedule movements.
At the meeting, a staff presenter summarized the tradeoffs: "We will be lucky if we see 39% this year," and cautioned there is "no mechanism to take on operational debt" outside of a voter‑approved referendum. The presentation estimated salary schedule movements add roughly $2.4 million and a maximum consumer price index adjustment (2.63%) could add about $4.5 million if fully applied.
Committee members and attendees pressed staff for line‑item detail. Staff explained that some accounting reclassifications (object‑code changes) affected apparent year‑to‑year shifts in admin pay and offered to provide detailed line items on request. The presenter also noted certain staffing and contract deadlines affecting 2026–27 decisions and said major structural changes would likely affect the 2027–28 school year.
On options, staff outlined three primary paths: (1) make deeper cuts now, (2) temporarily draw on reserves (noting reserves are about 25% of revenue), or (3) pursue an operating referendum to exceed the revenue limit. Staff emphasized the need to pre‑identify cuts that would take effect if a referendum failed so the public can see concrete tradeoffs before voting.
A community member said in earlier public comment that the board should be explicit about tradeoffs: "Oh, don't just ask for a little bit. Go big." Committee members said clearer, plain‑language communications and a robust community engagement plan would be critical before asking voters for more revenue.
The committee discussed holding ad hoc/listening sessions prior to the next formal meeting; a member said Dr. Weiss will reach out to individual members to schedule follow‑up. The committee adjourned after about an hour of discussion and staff circulated a plus/delta feedback form for committee members.
Next steps: staff will provide requested line‑item details to committee members, and the board may schedule additional listening sessions to shape any potential referendum question and associated communications plan.
