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Madison school budget heads to Oct. 26 vote with a 6.9% rise in the average home tax bill

Madison school budget heads to Oct. 26 vote with a 6.9% rise in the average home tax bill

Money Moves Madison, WI local

Fall forecast puts the tax rate up 2.81% on a $555M general fund; a health insurance RFP could change carriers by April 2027

Yesterday: Fall budget forecast and health insurance RFP presented

Overview

Updated 4 minutes ago

Madison's school board takes its final 2026-27 budget to a vote on October 26. The fall forecast presented to the board's Operations Work Group on October 19 projects the average City of Madison homeowner's school tax bill rising $335.24, or 6.87%, with the tax rate up 0.28 mills (2.81%). The general fund is balanced at $555.4 million in revenue and spending.

The state certified $42.3 million in general school aids, and the district's equalized property value rose 4.11% to $49.1 billion. Under the 2024 operating referendum the district gets an additional $20 million of revenue authority this year, after $30 million increases in each of the previous two years. Staff also laid out a health insurance bidding process: medical costs are trending 6.5%-8.5% a year, and a decision on the 2027-28 carrier is due by April 1, 2027.

Why it matters

The October 26 vote sets what Madison homeowners pay for schools this year; the district's own forecast puts the average bill $335 higher.

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Key Indicators

+6.87%
Average home tax bill change
Projected increase for the average City of Madison homeowner ($335.24), per the October 19 fall budget forecast.
$555.4M
General fund budget
2026-27 Fund 10 revenue and expenditures, balanced, per the October 19 budget update.
6.5%-8.5%
Medical cost trend
Expected annual growth in medical costs per the health insurance RFP.
$20M
Added referendum authority
Additional operating revenue authority for 2026-27 under the 2024 referendum, after $30M increases in each of 2024-25 and 2025-26.
+2.81%
Tax rate change
Projected increase of 0.28 mills in the school tax rate.

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People Involved

Organizations Involved

Timeline

November 2024 October 2026

8 events Latest: Yesterday
Tap a bar to jump to that date
  1. Board scheduled to adopt final 2026-27 budget

    Upcoming Vote

    Board adoption of the final Fall Approved (Original) Budget for 2026-27.

  2. Fall budget forecast and health insurance RFP presented

    Latest Meeting

    Operations Work Group hears the fall forecast (average home tax bill +$335.24 or 6.87%, tax rate +2.81%, $555.4M general fund) and an insurance RFP with a carrier decision by April 1, 2027.

  3. Board votes on preliminary $609M budget

    Vote

    Board approves preliminary budget including 8.5% property tax levy increase and $3.8M for salary compression.

  4. Proposed 2026-27 budget presented

    Meeting

    Proposed budget presented at Operations Work Group; board amendments shared and discussed.

  5. Board approves 60-day paid parental leave

    Policy

    Board approves new paid parental leave policy, making Madison the first Wisconsin district to offer 60 days for all staff.

  6. Draft budget presented at first input session

    Meeting

    Draft Fund 10 expenditures and priority projects presented; first budget input session held at Operations Work Group.

  7. District shares 2026-27 budget impacts with board

    Briefing

    Potential budget impacts for 2026-27 presented to the board, starting the annual budget cycle.

  8. Voters approve operating and facilities referenda

    Election

    Madison voters approve $100M of operating funds over four years ($30M increases in 2024-25 and 2025-26, an additional $20M in each of 2026-27 and 2027-28) plus a $507M facilities referendum.

Scenarios

1

Madison board adopts the 2026-27 budget as forecast

Likely Resolves by Oct 26, 2026

Discussed by: District staff and board members; the budget has been in development since March 2026

The board votes on the final 2026-27 budget at its October 26 meeting. The fall forecast projects a $555.4M general fund and a 6.87% rise in the average home tax bill; the June draft had proposed an 8.5% levy increase and $3.8M for salary compression. Adoption is expected but not guaranteed, as board members could push for amendments.

2

Madison schools switch health insurance carriers after RFP

Possible Resolves by Apr 30, 2027

Discussed by: District staff presented the RFP timeline at the October 19 board meeting

The district's health insurance RFP process could lead to a carrier decision by April 2027. Medical cost trends of 6.5%-8.5% are driving the search for a more cost-effective plan. A carrier change could reduce premium growth but may also mean changes to provider networks and employee out-of-pocket costs.

3

Madison schools seek another operating referendum

Possible Resolves by Nov 30, 2027

Discussed by: Wisconsin Policy Forum cautioned additional referenda could be necessary

With health costs rising and the referendum's added authority ending after 2027-28, the district may need another operating referendum. The Wisconsin Policy Forum noted this in a recent report. A referendum could appear on a future ballot, asking voters to extend or increase the operating levy.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2024

Mauston School District referendum crisis (2024)

Mauston, a small Wisconsin district, put two operating referenda on the 2024 ballot. Both failed, forcing $2 million in planned cuts and raising fears the district might dissolve. A third referendum later passed.

Then

District planned $2 million in cuts for 2025-26 before the third referendum passed.

Now

The episode showed how referendum-dependent Wisconsin school funding has become, and how fragile districts are when voters say no.

Why this matters now

Demonstrates what happens when communities reject referenda, a risk Madison could face if costs keep outgrowing its revenue.

2024

Wisconsin 2024 school referendum wave

Across Wisconsin, 241 referendum questions appeared on 2024 ballots in 192 of the state's 421 school districts. Voters approved about 70% of them.

Then

Many districts got funding relief through local property tax increases.

Now

Growing reliance on local referenda as state funding lags inflation, creating a patchwork of well-funded and underfunded districts.

Why this matters now

Madison's 2024 operating referendum was part of this wave, and the district may need to return to voters if costs keep outgrowing its revenue.

Sources

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