Marshfield schools face mixed budget news as new year approaches

MARSHFIELD – The Marshfield School District received a financial boost with the release of previously frozen federal education funding, but rising employee benefit costs and changing property valuations present new challenges as officials finalize the 2025-26 budget.
Federal officials released $157,000 in Title II, III and IV education funding that had been paused, providing welcome relief as the district navigates budget pressures heading into the new school year, officials said at the latest School Board meeting on Aug. 13.
However, Wisconsin Retirement System contribution rates will increase 0.25% starting Jan. 1, from 6.95% to 7.2% – the highest rate since 1989. The increase will cost the district more than $69,000 annually in matching contributions.
“This is a matching contribution, meaning that both employee and employer contribute 7.2% for a total contribution of 14.2%,” Finance Committee Treasurer Nicole Forst told the board Tuesday. “The budgetary impact for the school district of Marshfield is just over $69,000.”
Property values up

Preliminary property valuations show a 6.23% increase for the district, ranking 30th among the 35 districts in the Cooperative Educational Service Agency region. While higher property values typically mean less state aid under Wisconsin’s funding formula, the increase could indicate economic growth in the area.
The July 1 estimate from the Wisconsin Department of Public Instruction shows Marshfield with an increase in state aid, though Forst cautioned the estimate is preliminary and won’t be certified until Oct. 15.
“As less property value per member generally means increased state aid, this is an encouraging sign for the district,” Forst said. “As equalized values are a key component of the general state aid formula.”
Investment returns
The district’s investment portfolio performed well, earning $126,374 year-to-date compared to $72,327 in the prior year — an increase of $54,047. The district’s prior year total investment earnings reached $167,244.
Despite the investment gains and federal funding release, the district projects a relatively modest fund balance of $142,529 for the 2025-26 school year.
Budget uncertainties
Multiple factors remain unknown as officials work to finalize the budget, including final enrollment counts, state aid certification, property valuations, grant allocations, private school voucher impacts and open enrollment numbers.
“The budget will continue to be finalized as data becomes available, with further refinement needed before the certification of levies in late October,” Forst said.
The board’s approval of updated compensation plans for coaches, advisers and professional staff will also factor into final budget calculations as the district balances employee support with fiscal responsibility.