Wausau School District forecast shows roughly $1.7 million shortfall for 2026–27; board hears referendum project update

District finance staff presented a five-year forecast to the Committee of the Whole on Feb. 23 and told trustees the model shows a projected deficit that the administration will reconcile ahead of the 2026–27 budget.

"If our projections hold true and all of our assumptions happen, our next year budget is gonna be out of balance in the bad direction by about $1,693,000," the presenter, identified in the meeting as Bob, told the board. He said that figure — roughly $1.7 million — will be the focus of a reconciliation exercise over the next three months to find a combination of increased revenue and decreased expenses.

Bob also explained tax-related mechanics in the forecast: the presentation modeled general fund taxes rising from about $23.2 million to $25.6 million in the projection (the presenter noted this reflects the state revenue-limit increase without matching state aid, which shifts more cost to local taxpayers). He emphasized the district can use fund-39 (debt retirement for referendum bonds) levers to offset some pressure on the fund-10 tax rate, keeping the overall mill rate relatively flat in the model.

Special education costs were a notable pressure point. The presenter said that special-education reimbursement rates from the state are not keeping pace with expense growth, so the operating transfer from fund 10 to fund 27 is expected to rise (the presentation listed increasing interfund transfers flowing from the general fund to special education in future years). On the bus contract, staff reported a 4% per-route annual increase spelled out in the contract; board members discussed routing efficiency and fuel-purchase timing as possible reconciliation items.

Separately, Bob provided an update on referendum-funded facility improvements. He said roughly $130 million has been spent to date and the district expects to fund remaining projects; four smaller projects were out for bid and two larger ones (Marshall and Franklin) were projected at about $6.8 million and $5.3 million respectively. The presenter said about $1.7 million remained as available balance to provide comfort for bids and remaining purchases.

The committee did not take formal budget action at this meeting; staff will return with reconciliation plans and possible budget changes for future board consideration.