Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
District reports small FY24–25 deficit but warns a 6.8% drop in state equalization aid will put upward pressure on property taxes
Summary
Finance staff reported an FY24–25 operating deficit of about $29,000 (much below the budgeted $700,000) and a fund balance of roughly 30.6%. The July 1 equalized aid estimate showed a $630,000 (6.8%) reduction in state aid, meaning property taxes will need to cover the gap until final October figures.
District finance staff presented year-end audited figures and budget forecasts to the Lake Mills Area School District board. The district closed fiscal year 2024–25 with an actual deficit of about $29,000 — far smaller than the budgeted $700,000 shortfall — and a favorable fund balance around 30.6%.
Pasha told the board the July 1 equalized aid estimate was $8.6 million, a 6.8% decline (about $630,000) from the prior estimate. She explained the inverse relationship between state equalization aid and property taxes: when equalization aid declines, property taxes must rise to maintain revenue limits absent other adjustments. The reduction in state aid was described as an unusual statewide decision, with business officials noting that additional aid had not been added this cycle.
On expenditures and projections, the preliminary 2025–26 revenue estimate for the general fund is about $20.4 million and preliminary expenditures about $20.5 million, producing a projected deficit near $1.1 million before further adjustments. Major drivers include a negotiated wage increase (2.95% referenced by staff), declining enrollment pressures on per-pupil revenue, and inflationary cost increases in insurance, fuel and materials. Transfers to special education (fund 27) are increasing and are budgeted at roughly $2.6 million for the coming year; state special education reimbursement rates increased in recent guidance (Pasha referenced 42% for the current year and projected 45% the next year, subject to final statewide data).
Pasha emphasized that final budget adjustments will follow the October 15 state aid release and updated enrollment numbers; the board will hold an annual meeting on Sept. 15 and make budget adjustments after October. She also noted that some federal Title program funds were at risk of being withheld and that the district is monitoring potential impacts to staff development and targeted programs.
Next steps: publish the preliminary budget, continue monitoring bids and referendum spending, adjust the general fund budget after the October state aid numbers and report back to the board and public.
