Wauwatosa budget hearing: officials project small fund-balance gain, propose flat-levy/debt approach and investments in curriculum

The Wauwatosa School District held a special budget hearing on July 20, 2026, where district staff reviewed the proposed 2026–27 operating budget, described levy options and next steps, and heard public comment on maintenance and program changes.

The staff presenter told the board the district is pre-audit but is "anticipating putting about $500,000 into fund balance," and said overall the budget picture shows a positive net movement into the budget. The presentation noted the district has budgeted and tracked referendum spending online — of the district's $60,000,000 referendum total, about $7,100,000 had been spent through the end of June, staff said.

On taxes and levy options, staff explained how the state's revenue cap and aid formula split revenue between property taxes and equalized aid and described a proposal to keep the general-fund levy flat while using additional debt-service levy to pay down 2018 referendum debt early. The presenter framed the approach as a way to preserve a stable general-fund levy while using debt-service capacity to save on interest and shorten debt schedules; staff cited an estimated total levy near $85.9 million (about $8.55 per $1,000) under current projections.

Revenue drivers discussed included local property taxes as the largest revenue source, state aid, and interdistrict payments from open-enrollment students. Staff said recent revenue and expenditure trends put the district in a stronger position than expected: audited years show revenues slightly higher than earlier projections and operating expenditures underspent in the last year, which contributes to the modest fund-balance increase.

On spending, the presenter said personnel makes up roughly 77% of operating costs and highlighted recent compensation increases (about a 5.2% average for teachers and about 4% for other staff) plus nearly an 8% rise in health-insurance expenses. The district also built several initiatives into the proposed budget: roughly $1,000,000 for a math curriculum adoption and about $80,000 for wireless infrastructure enhancements.

During public comment, Lawrence Horning urged the board to budget more for building maintenance, noting a prior shortfall that led to a referendum. Horning also suggested including peer student-outcome comparisons when presenting peer spending data and asked about the budget impact of moving the STEM program out of Wilson.

In response, staff said the district's deferred-maintenance backlog is "about $130,000,000, maybe $150,000,000," and noted the district's annual operating budget is roughly $100,000,000, making it difficult to close deferred-maintenance needs without another referendum. On the STEM move, staff said a state "hold-harmless" provision will blunt funding loss this year but that enrollment and funding changes could affect the district in about three years; staff also noted fewer teachers now remain at Wilson.

Another resident, Derek Gottlieb, voiced support for the flat-levy/debt-service strategy, saying it gives the district flexibility and reduces immediate tax impacts for homeowners.

The hearing was opened for public comment and closed after two in-room commenters; no formal budget vote was taken at the hearing itself. The board adjourned the special budget hearing at 5:56 p.m.; the presenter said a preliminary budget would be before the board that evening and that a final budget and tax levy are expected to be approved in October.

What happens next: staff will continue the budget process, present a preliminary budget at the regular board meeting, and return in October for final budget and levy action.