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Wauwatosa projects improved fund balance but readies for possible 15% state-aid cut
Summary
Committee staff presented a preliminary 2026–27 operating budget that projects an improved fund balance and includes a 5.2% average teacher raise, while cautioning the district is modeling a potential state-aid reduction of up to 15% and will rely on property-tax chargeback and local revenue assumptions to cover any loss.
A staff presenter laid out a preliminary operating budget for fiscal 2026–27, saying the district expects to finish the current year better than budgeted and is planning conservatively for the year ahead.
The presentation projected the district’s current-year fund balance ending at about $9,910,000 (roughly 7.57% of expenditures) and showed next-year scenarios that assume the district could claim back a property-tax chargeback that boosts local revenue. The presenter said the baseline budget includes a 5.2% average increase in teacher pay and a 4% increase for other staff, and that the district has budgeted roughly $1,500,000 for curriculum this year with additional referendum funds earmarked for future adoptions.
“I'm anticipating that our state aid is going to go down by the maximum 15%,” the staff member said, framing the decrease as a conservative stress-test the district is using while it finalizes assumptions. The presenter explained the July 1 state-aid estimate (based on districts’ budgeted numbers) will be refined in October when actual data are submitted to the Department of Public Instruction.
Committee discussion focused on how the district would absorb a reduced state aid allocation. Staff said property-tax revenue inside the revenue limit and the recently described property-tax chargeback are primary offsets; the presenter also noted the district is rebuilding its fund balance after several years of volatility and expects to land near policy targets if current projections hold.
The presenter flagged several one-time and ongoing drivers: an anticipated $3.1 million budgeted deficit (largely related to timing and a one-time chargeback of about $3.5 million), continuing declines in federal grant revenue since ESSER, rising health-insurance costs (projected ~7.7%), and referendum commitments (curriculum, building/grounds, and technology). The staff member said the roadshow of public presentations will begin in two weeks, with a June 1 board work session, a June 8 budget workshop open to the public, and a July 20 budget hearing on the calendar.
The committee asked for follow-up workshops and more detailed assumptions on state-aid scenarios, and staff said they would provide additional modeling at upcoming work sessions and in July when a preliminary estimate becomes available.
