District presents draft 2026-27 budget; staff project surplus now but long-term gaps loom

The Verona Area School District administration presented the draft 2026-27 budget to the board as a starting point for discussion, emphasizing it remains in draft form through mid-October. "That was nearly $400,000," finance staff said describing a loss in federal funding the district cannot count on moving forward. Administrators also built assumptions for a projected 125 new open-enrollment FTEs and an estimated $1,600,000 increase tied to the 3rd Friday student count, producing about $2.6 million in additional revenue in the draft.

Chad told the board that while these factors produce roughly 2.3% new revenue, CPI is 2.63% and healthcare and compensation pressures remain significant; as a result staff tightened staffing through attrition and left a 3% compensation placeholder pending final contracts. "In the end, we're presenting a balanced budget to the school board tonight," Chad said, while cautioning that projected state aid and equalized values will change outcomes before final adoption.

Board members pressed staff on assumptions and asked about steps if a budget gap appears next year; staff forecast a possible $4$5 million deficit under current long-term assumptions and discussed options including an operating referendum or reallocating levy authority previously used for debt prepayment.