For immediate release
Friday February 11, 2005
The budget forecast that the MMSD Board of Education will officially receive on Monday will show a gap of just under $8.6 million for next year between projected costs to continue current services and revenues allowed under the state-imposed revenue cap. This means that the district must cut nearly $8.6 million of programs and services from the 2005-06 budget.
This budget forecast is based on an extensive analysis of anticipated revenues, current program costs, and projected enrollments and should reflect a more accurate estimate of the budget gap for next year. It includes an extended forecast that based on current law, projects revenues and expenses for the next four years.
| Forecast Budget Gap | Cumulative Forecast Gap | |
|---|---|---|
| 2005-06 | $8,591,472 | $8,591,472 |
| 2006-07 | $6,842,074 | $15,433,546 |
| 2007-08 | $7,039,619 | $22,473,165 |
| 2008-09 | $6,496,301 | $28,969,466 |
Madison, like most districts in Wisconsin, is in a perennial budget-cutting mode because of the school finance formula. Revenue limits for next year allow MMSD to increase its budget by 2.35%, while the costs to operate, with no added programs or services; will go up at least 4.0%. Utilities and other items are increasing at an even higher rate. The percentage gap translates into the $8.6 million.
Since the enactment of state revenue caps in 1993, the district has cut a total of over $37 million, including 418 staff positions, through the 2004-05 year.
The district administration is currently in the process of preparing recommendations that would balance the budget. These recommendations will be brought forward in early March to the Board of Education, which will make the final budget decisions.
Public Information Office
545 W. Dayton St.
Madison, WI 53703
608-663-1879
email: newsrelease@madison.k12.wi.us
Last Modified: 2005-03-24
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