KUSD Presents Proposed Budget At Annual Electors Meeting

Kenosha, WI (WLIP)–At this week’s Kenosha Unified Annual Electors Meeting officials presented a detailed overview of the district’s financial situation, focusing on the budgets for several fiscal years.

The district is facing a $3.5 million deficit in the 2023-2024 fiscal year, with expenditures of $284.3 million outpacing revenues of $280.8 million.

For 2024-2025, the district anticipates another deficit of $2.5 million, with $266.4 million in expenditures against $263.9 million in revenues.

Efforts to balance the budget have included consolidating schools, reducing departmental expenses, and shifting costs to Esser grants.

The district’s unassigned fund balance currently stands at $67.5 million, and the 2025 budget anticipates $2 million in interest revenue due to maintaining sufficient cash reserves.

Despite these challenges, KUSD is aiming to limit the tax impact on residents.

A projected decrease of $155 in taxes for a $250,000 home reflects the district’s efforts to balance increasing property values with the constraints of the state’s revenue limit formula.

A key discussion point was the ongoing impact of Wisconsin Act 10, which has resulted in a significant funding shortfall over the past 13 years.

The district highlighted a $1,559 per pupil shortfall compared to Consumer Price Index (CPI) increases during this period.

KUSD’s revenue limit for the upcoming year is set at $228.8 million, with $157 million expected from state aid.

The state aid formula, which is determined by property values and student enrollment, shows that the district will receive state shares of 61% at the primary level, 66% at the secondary level, and 23% at the tertiary level.

Looking forward, the district’s property values per student are estimated at $750,000, which impacts how much state aid KUSD will receive.

While property values have risen nearly 8% over the past year, the district’s revenue limit prevents them from fully benefiting from this increase.

The district’s total outstanding debt stands at $112 million, with plans to maintain a consistent debt schedule.

KUSD also operates a Community Services Fund, which provides essential services such as family education, gang prevention, and recreational activities.

Several important dates lie ahead as the district works to finalize its 2024-2025 budget.

An updated count of property values and student enrollment will occur in September, with the revenue limit formula recalculated by October.

The district will notify municipalities of the final tax levy by November 10, setting the stage for property tax bills and other financial impacts.

In the meantime, KUSD will continue refining the budget, focusing on staff changes, cost-cutting measures, and managing cash balances to maximize interest revenue.

The district’s long-term financial health remains a priority, with efforts to minimize borrowing costs and maintain its strong credit rating, even as enrollment declines and costs rise.