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Even after the start of the fiscal year July 1, there were several unknowns for the district, including the membership count on the third Friday of September, which is state-mandated. That is a key factor in determining state funding and the district’s revenue limit. Also factors in revenue calculations are open enrollment numbers in the district, revenues from the Janesville international exchange program, independent charter school membership, the Oct. 1 release of the district’s final general equalization aid amount and the Oct. 15 release of the district’s equalized property values. The district’s equalized property values are a key factor in calculating the equalized tax rate.

“When the state increases equalization aid, that is a tax reduction to the local taxpayer. It is not additional revenue to the district. That has not changed. So, any additional revenue to the district will be fully felt by the local taxpayers,” McCrea said.

Per pupil aid is expected to be at $742. The revenue limit is expected to be at $325 per member. This accounts for member, and in the membership count not all students qualify for aid.

Data provided by McCrea compared Janesville’s revenue limit per member in 2024-25 to seven other area districts: Clinton, Edgerton, Fort Atkinson, Jefferson, Milton, Beloit Turner and Whitewater. On that list, Janesville’s base revenue was tied for last on the list with Milton at $11,325 despite having close to three times as many members as the second-largest district by member total on the list. The second-largest membership total was Milton, which had 3,361, according to the data. The highest base revenue on the list was Clinton at $14,475. Clinton, according to the list, had a membership of 924.

“We are a low revenue limit district even when you factor in our operational referendum,” McCrea said, adding, “We are not a rich district in terms of revenue limit per revenue.”

The revenue limit ceiling is expected to remain at $11,000.

Special education will be 42% in year one and 45% in year two. It will reduce the district’s special education transfer of funds by about $2 million.

“Word of caution, in my history as a school business official, it never reached that threshold. In the past it was 30%. In the past it was 33%.

McCrea told the board that the district received a notice June 30 that the U.S. Department of Education will withhold approximately $72 million for “certain federal programs.” The district’s portion of the funding is about $592,000. Additional information is forthcoming, according to McCrea’s presentation.

“It’s a notice. It’s not legislation. So, that’s why we are just being very cautious. I don’t want anyone in the room or anyone watching to think we are losing it. We just don’t know,” McCrea said.