Photo by Richard Hurd
MMSD Begins Early Planning for 2026–27 Budget, Outlines Priorities and Fiscal Outlook
MADISON, Wis.—The Madison Metropolitan School District (MMSD) has begun early planning for its 2026–27 preliminary budget, outlining key priorities focused on supporting students, aligning resources to district goals and maintaining long-term fiscal stability amid rising costs and ongoing state funding challenges.
District leaders emphasized that budget development begins months in advance to ensure thoughtful planning, transparency and alignment with MMSD’s Strategic Framework. The process centers on meeting student and staff needs while remaining fiscally responsible stewards of public resources.
“Our budget reflects what we value most as a school district,” said Superintendent Joe Gothard. “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.”
Potential cost increases for the 2026–27 fiscal year are significant. Current estimates include:
- Compensation step increases: $4.7 million
- Inflationary compensation increases (2.63%): $9.5 million
- Health insurance increases: $14 million to $16 million
- Salary compensation study outcomes: $2 million to $8 million
- Parental leave benefit expansion: To be determined
In total, MMSD is projecting between $30.2 million and $38.2 million in potential new cost pressures.
“These increases reflect contractual obligations, market conditions and our responsibility to remain competitive as an employer,” said Bob Soldner, assistant superintendent of financial services. “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 not only by rising costs but also by declining state support. MMSD expects to receive approximately $7 million less in general state aid, continuing a trend that places greater reliance on local property taxes to fund operations.
Because Madison’s property values exceed the state average, MMSD receives about 10 percent of its funding from general state aid. By comparison, other large urban districts in Wisconsin receive between 62 percent and 68 percent.
In addition, MMSD continues to face a $62 million gap between special education costs and state reimbursement. The district must cover those expenses to ensure students receive legally required services.
Early learning also remains a priority investment. Although 4K students are funded at 60 percent of a full pupil count, districts must cover the full cost of providing programming.
“We know early learning sets the foundation for long-term academic success,” Gothard said. “Even when funding formulas fall short, we remain committed to ensuring our youngest learners have access to high-quality, full-day experiences.”
Recent voter-approved facilities and operations referenda have helped stabilize MMSD’s financial position and allowed the district to move forward with rebuilding or reconstructing 10 schools. District leaders expressed gratitude for that community support while noting it does not eliminate structural funding challenges.
As planning continues, MMSD will evaluate expenditures, staffing needs and program investments while advocating alongside other districts for sustainable state funding solutions, particularly around special education reimbursement.
The preliminary budget will be refined in the coming months, with additional updates and opportunities for public engagement provided throughout the process.
MMSD stakeholders and community members are encouraged to provide feedback on the budget through the district’s Let’s Talk platform.
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About the Madison Metropolitan School District
The Madison Metropolitan School District (MMSD) is the second-largest school district in Wisconsin, serving more than 25,000 students across 52 schools. The district’s vision is that every school will be a thriving school that prepares every student to graduate ready for college, career and community. With more than 6,000 teachers and staff, MMSD is committed to ensuring the district’s goals and core values are held at the center of its efforts, so students can learn, belong and thrive. For more information, visit mmsd.org.