Like with every other preliminary budget in this series, please keep in mind that the numbers Madison starts with here can change between now and when the budget is adopted.
Operating budget moves from ~$55.4M (2024-25 actual) to ~$59.7M (2025-26 revised) to ~$60.0M (2026-27 prelim) representing a ~$350K bump year-over-year into the preliminary, so the big jump comes from the 2024-25 actual to the 2025-26 revised, while growth slows sharply into the 2026-27 prelim.
Madison Operating Budget
2024-25 actual to 2026-27 preliminary
The big jump comes from the 2024-25 actual to the 2025-26 revised budget, while growth slows sharply into the 2026-27 preliminary.
The tax levy tells a different story- that rises from ~$48.6M (2025-26 revised) to ~$52.0M (2026-27 prelim), a ~$3.4M increase (+ 7%). This while state aid falls from ~$4.75M (2025-26 revised) to ~$4.40M (2026-27 prelim.) due to a big drop in Extraordinary Aid (according to the notes).
Fund balance use drops significantly as well from ~$2.56M (2025-26 revised) to ~$1.24M (2026-27 prelim.) with both maintenance reserve and capital reserve withdrawals going to zero.
So the Districts is pulling more and more from the tax levy and holding off on touching reserves as the state give shrinks.
Tax Levy Rises as State Aid Falls
2025-26 revised to 2026-27 preliminary
The local tax levy increases by about $3.4M while state aid declines, largely due to a reduced Extraordinary Aid projection.
On thing is clear in looking at Madison’s Budget – Regular Instruction is not in the driver’s seat as it moves from ~$16.23M (2024-25 actual) to ~$16.66M (2025-26 revised) and then down to ~$16.16M (2026-27 prelim.). While it is relatively flat over the full period, it rises into the 2025-26 revised budget before declining in the 2026-27 prelim.
Special education instruction tracks similar from ~$5.24M (2024-25 actual) to ~$5.68M (2025-26 revised) to ~$5.49M (2026-27 prelim.).
When you look at the internals it gets interesting.
Emotional Regulation Impairment increases significantly, while Resource Room declines as a result of teachers moving from Resource Room to ERI along with a reduction of staff in Resource Room by two FTEs.
Preschool disabilities also declines, with notes pointing to a one FTE reduction.
Instruction Is Not Driving the Increase
Regular instruction and special education instruction both decline from revised to preliminary
Out-of-district and placement costs continue to rise unlike some other District’s we’ve looked at.
Total tuition-related spending moves from ~$2.68M (2024-25 actual) to ~$2.82M (2025-26 revised) to ~$2.89M (2026-27 prelim.).
Tuition and Placement Costs Keep Rising
Unlike some districts, Madison’s placement-related tuition costs continue upward
Total tuition-related spending continues to rise across the three-year comparison.
Student support services is mixed.
Health services bumps up from ~$528K (2024-25 actual) to ~$533K (2025-26 revised) to ~$584K (2026-27 prelim.) – AEDs, EpiPens, and substitute nurse coverage per notes.
Extraordinary or other support services rises into the revised budget and then drops slightly in the preliminary, from ~$2.39M to ~$2.27M.
But the notes indicate staffing changes, including paraprofessionals being replaced with contracted services, which complicates how that line should be interpreted.
Child Study Teams drops from ~$1.87M (2024-25 actual) to ~$1.77M (2025-26 revised) to ~$1.70M (2026-27 prelim) with notes pointing to reduced supplies and services.
Reductions show up clearly in support and admin areas.
Improvement of instruction drops sharply from ~$1.36M (2024-25 actual) to ~$1.28M (2025-26 revised) to ~$890K (2026-27 prelim) – instructional supplies were moved out of that line and a secretary position was reduced according to the notes.
General administration drops from ~$1.17M (2025-26 revised) to ~$1.02M (2026-27 prelim), with notes referencing a separation agreement last year.
School administration also declines from ~$2.37M to ~$2.18M.
While these are meaningful reductions on paper, some appear tied to one-time items or reclassification v. foundational changes.
Athletics is going north, increasing from ~$913K (2024-25 actual) to ~$939K (2025-26 revised) to ~$1.04M (2026-27 prelim), with notes pointing to stipend increases under negotiation.
Security is worth noting because it dips in the revised budget and then rebounds above the prior actual, moving from ~$164K (2024-25 actual) to ~$131K (2025-26 revised) to ~$183K (2026-27 prelim). Residents may want to ask some hard questions here – a pretty penny for someone to monitor a door.
Security Dips, Then Rebounds
Security spending rises above the 2024-25 actual in the preliminary budget
The line dips in the revised budget, then rebounds above the prior actual in the 2026-27 preliminary.
Transportation on a steady ascend – ~$2.54M (2024-25 actual) to ~$2.67M (2025-26 revised) to ~$2.77M (2026-27 prelim) with special education transportation a primary factor.
Transportation Keeps Climbing
Special education transportation remains a primary factor
Transportation continues its steady upward movement across the full comparison period.
The biggest pressure point in the entire budget is….you guessed it… employee benefits (I should just copy and paste this line for every budget). The line moves from ~$8.16M (2024-25 actual) to ~$10.06M (2025-26 revised) to ~$12.31M (2026-27 prelim).
Employee Benefits Keep Climbing
The biggest pressure point in the Madison budget
Employee benefits increase by more than $4M over the three-year comparison period.
Health benefits alone jumps from ~$6.53M to ~$8.30M to ~$10.90M.
Health Benefits Alone Explain Much of the Pressure
Health benefits inside employee benefits
Health benefits rise by roughly $4.4M from the 2024-25 actual to the 2026-27 preliminary budget.
That increase by itself pretty much explains the rising tax levy despite multiple areas going down or staying flat.
Capital spending drops off significantly from ~$694K (2025-26 revised) to just ~$6.6K (2026-27 preliminary).
Capital Spending Drops Off
Capital outlay nearly disappears in the 2026-27 preliminary budget
The budget notes indicate no current plans to draw from capital reserve, and prior transfers into capital projects are removed.
The budget notes indicate no current plans to draw from capital reserve, and prior transfers into capital projects are removed.
Debt service, however, continues to rise, with the district noting that the first principal payment on new debt begins in 2026.
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