Thank you for your support in the November referenda. Your vote was crucial, enabling us to build sustainable revenue streams and move away from relying on one-time funds to balance our budget. This financial stability allows us to better plan for the future. We are incredibly thankful for your investment in the future of MMSD.
However, public education continues to face significant financial challenges due to persistent underfunding at both state and federal levels. Our public schools have long been underfunded, and now, more than ever, it’s critical that public education is prioritized.
We appreciate the recent budget passed by the State Legislature and signed into law by Gov. Evers. However, concerns remain about the long-term financial health of public education in Wisconsin.
Since 2020, Wisconsin has had extra money in its fund balance. The most recent state budget process began with approximately $4.2 billion in surplus funds. Although the state budget reflects a surplus, no new state general aid has been provided to help offset rising inflation costs.
Madison is expected to see a $12 million loss in general aid compared to last year, resulting in a $12 million increase in property taxes. While that increase has been reflected in MMSD’s current budget, meaning no additional taxes for local property owners for 2025, it will have future impacts.
Although the increase in special education reimbursement represents a positive step forward, considerable work remains to ensure adequate funding for public schools. Public school districts statewide had originally advocated for a 90% special education reimbursement rate. Even with this increase, MMSD faces a $64 million shortfall for the upcoming school year.
In addition to these state-level challenges, public schools face unexpected financial impacts due to withholding federal funds – dollars we had counted on. These potential cuts will affect our students, families, educators, staff and community.
Specifically affected are programs provided by Madison School & Community Recreation (MSCR) sites awarded 21st Century Community Learning Center grants. Students and families depend on these services for essential afterschool support.
Despite these funds being withheld, our team is working diligently to ensure we continue providing support and continuity for stakeholders who rely on these services.
The financial implications are severe:
MSCR Afterschool Programs: More than $1 million of federal funds is being withheld from MSCR impacting afterschool programming at 11 MMSD schools. Should these funds remain withheld afterschool programming could be significantly reduced or property taxes increased.
Critical Instructional and Support Programs: Approximately $1.9 million in federal funding is also being withheld impacting programs critical to supporting our students and teachers:
Title II Part A ($800,000): These funds improve teaching and learning through mentorship and professional development opportunities.
Title III Part A ($600,000): This funding supports English learners achieving proficiency.
Title IV Part A ($500,000): This funding provides access to well-rounded education ensuring safe learning conditions.
The sudden withholding of these federal funds creates uncertainty as we plan and budget. Many districts including ours had already made staffing decisions based on receiving these allocated funds. The potential loss or delay could force difficult choices about staffing levels program offerings and services supporting vulnerable students.
MMSD will continue monitoring projected revenue closely but should funding decrease or holds be placed on funds difficult decisions may need regarding programming staffing resources while remaining committed preparing students college career community.
Thank you continued partnership support navigating evolving financial challenges ensuring all students learn grow thrive.
Joe Gothard
Superintendent
MMSD held a press conference regarding this topic on July 9 2025 recording available below.
