The Madison Metropolitan School District has begun early planning for its 2026–2027 preliminary budget.
“Our budget reflects what we value most as a school district,” Superintendent Joe Gothard said in a statement. “We are committed to uplifting the student experience, supporting our staff and making strategic investments that move our schools forward. At the same time, we must plan responsibly for financial realities that continue to challenge public education.”
The cost increases are described as “significant” in the statement. Current estimates include:
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Compensation step increases: $4.7 million
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Inflationary compensation increases (2.63%): $9.5 million
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Health insurance increases: $14 million to $16 million
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Salary compensation study outcomes: $2 million to $8 million
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Parental leave benefit expansion: To be determined.
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MMSD is projecting between $30.2 million and $38.2 million in potential new costs.
“These increases reflect contractual obligations, market conditions and our responsibility to remain competitive as an employer,” Bob Soldner, assistant superintendent of financial services, said in a statement. “We begin planning early so we can evaluate multiple scenarios, manage risk and minimize disruption to schools and classrooms.”
The district’s financial outlook is shaped by rising costs and declining state support. MMSD expects to receive approximately $7 million less in general state aid.
MMSD receives about 10% of its funding from general state aid and said it faces a $62 million gap between special education costs and state reimbursement.
The preliminary budget will be refined in the coming months and there will be opportunities for the public to be involved throughout the process.
