Board of Education Meeting Recap
November 5th, 2024
2026-27 Draft Budget Hearing and Annual Meeting Report
Relevant Policy: Operational Expectation (OE) 6: Financial Administration
Deputy Superintendent Chad Wiese and Director of Finance Pete Grender provided a preview of the 2026-27 Budget Hearing and Annual Meeting, sharing an update on the proposed 2026-27 budget, including changes in revenue, debt management, employee compensation, the district’s Other Post-Employment Benefits (OPEB) trust, and the projected property tax impact. The 2026-27 draft budget reflects the district’s commitment to fiscal responsibility while investing in staff and student success.
The proposed budget reflects approximately $2.64 million in new revenue authority compared with 2025-26, driven by a $325 per-student increase in the state revenue limit and increased open enrollment revenue, partially offset by a decrease in federal funding. The district anticipates approximately 125 additional open enrollment full-time equivalent (FTE) students in 2026-27. The budget also incorporates staffing reductions of 8.73 FTE through attrition, representing approximately $714,000 in savings. The budget assumes an average 3% total compensation increase for VAEA and VESPA staff, while base wage bargaining remains underway.
The BOE also received an update on the district’s debt management strategy. Deputy Superintendent Wiese proposed shifting a planned debt prepayment from 2025-26 to 2026-27, a strategy projected to increase state aid by approximately $1.8 million across 2026-27 and 2027-28. Since 2017-18, VASD has applied approximately $29 million toward debt prepayments, resulting in approximately $10.5 million in debt service savings.
Deputy Superintendent Wiese also reviewed the district’s OPEB trust, which was established in 2014 to fund retiree benefits. Due to factors including health care inflation, increased staffing, and benefit changes, current projections indicate the trust could be depleted in 2032, two years before the related loan is paid off. The district plans to use a portion of the remaining 2025-26 funds to help address the projected shortfall and will continue monitoring the fund, updating actuarial analyses, and bringing recommendations to the BOE as needed.
The proposed 2026-27 school levy is approximately $87.4 million, an increase of about 5% from 2025-26. With projected growth in equalized property values, the district anticipates maintaining a flat mill rate of $10.66 per $1,000 of equalized property value. The estimated average tax impact for existing property owners is an increase of approximately 1.9% due to projected growth in equalized property values.
Deputy Superintendent Wiese noted that the proposed budget is balanced through a combination of staffing reductions through attrition and compensation assumptions. Looking ahead, projected financial challenges for 2027-28 and uncertainty surrounding the next state biennial budget are expected to inform future discussions about the district’s long-term financial strategy, including the potential for an operational referendum.
The 2026-27 Budget Hearing and Annual Meeting is scheduled for September 21, 2026.
BOE members discussed the relationship between state funding, local property values, the district’s revenue limit, and the impact those factors have on VASD’s budget and local property taxes. Member Stier Christensen asked whether VASD has any influence over property valuations established by the Wisconsin Department of Revenue. Deputy Superintendent Wiese clarified that the district does not control those valuations and must respond to them through the budgeting process. BOE Member Murphy noted that the budget includes a combination of factors the district can control and those it cannot. Deputy Superintendent Wiese also explained that VASD cannot adjust the mill rate differently for individual municipalities or areas experiencing greater increases in property values.
The discussion also focused on Wisconsin’s school funding system. Member Hanes noted that the state’s $325 per-student increase provides additional revenue authority rather than additional state aid, meaning the additional funding must come from local property taxes. Member Murphy emphasized the distinction between state funding and permission for school districts to raise additional local revenue. Director of Finance Pete Grender shared that, under current projections, VASD would need approximately $800 to $900 in additional per-student revenue next year to balance the budget. Member Hanes also asked about the longer-term effect of state revenue limits not keeping pace with inflation, and Deputy Superintendent Wiese noted that VASD’s 2022 operational referendum helped the district close much of that gap.
Member Murphy asked how VASD’s strategy of prepaying debt relates to the potential need for another operational referendum. Deputy Superintendent Wiese explained that the district’s debt prepayments reduce long-term borrowing costs and that Wisconsin law limits how school districts can use available revenue. Member Hanes further noted that a future referendum could ask voters for permission to redirect levy authority from debt payments to district operations as debt is paid down, rather than necessarily increasing the overall tax levy.
The BOE also discussed the district’s OPEB obligations. Member Murphy asked how changes to retirement benefits affect the district’s long-term liability. Deputy Superintendent Wiese explained that actuarial projections account for current retirees, employees who may retire in the future, and newer employees, allowing the district to anticipate its obligations and make adjustments as projections change.