OSHKOSH – The school district seems set on cutting staff by January.
Oshkosh Area School District said it will be reducing its operational budget, which “will inevitably involve fewer positions,” as it faces an estimated $6 million deficit for the 2026-27 school year.
OASD briefly addressed the staff reductions in a written update to the public, saying it’s engaged in a system-wide budget review driven by a “structural imbalance” and declining enrollment that require the district “to take immediate action.”
Did Oshkosh Area School District identify which positions will be cut?
In an FAQ section of that budget reduction communication, OASD said schools and central office are reviewing budgets before final recommendations are submitted to the board Jan. 14.
Emails to OASD were not immediately returned and the communication didn’t specify which jobs were being cut, revealing “no final decisions have been made regarding specific staff or programs.”
The update did appear to address positions within the district’s central office, saying every administrative role “is being thoroughly reviewed to ensure it directly and efficiently supports core instruction and complies with the new, reduced financial reality.”
Did OASD address its executive team reorganization from 2023?
Under the FAQ section titled “Why were administrator positions added at Central Office in 2023-2024?,” OASD specifically mentions the director of technology and director of community engagement and equity roles.
Jason Schmidt and Anthony Miller hold those positions, respectively.
The district said the executive team reorganization was a strategic effort following the retirement of former Deputy Superintendent Dave Gundlach and one-time Executive Director of Administration Andy Jones.
Along with the addition of Miller’s and Schmidt’s jobs, two assistant superintendent positions along with the roles of director of secondary schools and director of elementary schools were renamed.
Former Assistant Superintendent of Operations Julie Conrad-Peters, who made $169,311 annually, left the position in June and was replaced by Brian Yerkey two months later, although the district said it has been “addressing the budget trajectory since August.”
Job search platform Indeed posted the position’s starting salary at $160,000.
Why is the district facing financial challenges?
News of OASD’s budget reduction efforts comes as districts across Wisconsin continue to face financial challenges caused by declining enrollment and state revenue allocations.
OASD recently adopted its 2026 budget at $297,588,847 — 80% of which goes to staffing — but reported 185 fewer students than the 2024-25 school year.
State funding is directly proportional to student enrollment numbers. School districts are not allowed to raise tax rates to cover the loss of students, as they are strictly limited by the state’s revenue limit formula.
“To balance the 2026-2027 budget, we must bring our spending and expenses in line with our income and revenue,” OASD wrote in the FAQ section of the communication.
“Our goal is to achieve this by making responsible budget reductions that create a sustainable cost structure aligned with our current enrollment, thereby ensuring the long-term financial stability of the district.”
Did OASD take any prior measures to address its finances?
According to OASD, the deficit exists despite “proactive financial measures” that include the following:
“Our expenses, particularly for salaries, benefits, and services, have consistently climbed faster than the fixed revenue source,” wrote OASD.
The OASD Board of Education recently approved 4.5% salary increases for teachers and Superintendent Bryan Davis, which made him the third highest paid superintendent in Wisconsin at the time with an annual salary of $245,095.
The board also approved 2.95% raises for non-union groups such as food service employees, paraprofessionals and other administrators.
Why is OASD facing a $6 million deficit despite passing a $197.8 million referendum?
In the communication, OASD explained the district’s consolidation projects, funded by April’s $197.8 million referendum, “are completely separate” and cannot be used for normal operational expenses.
Just last week, the district said it was forced to go back to the bank for a second line of credit because OASD underbudgeted on a routine $10 million worth of short-term borrowing.
The board approved OASD adding another $5 million to the line of credit as districts typically use short-term borrowing as mechanisms to address cash flow issues as a result of the uneven payments of equalization aid.
OASD is slated to receive $83,608,283 for the 2025-26 school year, but that total is spread over quarterly installments on Sept. 15 ($12,256,902), Dec. 1 ($21,186,411), March 23 ($20,902,071) and June 15 ($29,262,899).
The district also expected to receive other grant funding from the Department of Public Instruction in early October, but that $1.5 million payment didn’t come until last week.
What is the timeline for the budget reduction process?
OASD said it plans to update the public on the budget reduction process Dec. 5 before the board meets to discuss those preliminary recommendations Dec. 10.
Final recommendations are set to be formalized and submitted to the board Jan. 14.
Contact Justin Marville at jmarville@usatodayco.com and follow him on X (formerly Twitter) at @justinmarville.
This article originally appeared on Oshkosh Northwestern: Oshkosh Area School District says staff cuts ‘inevitably’ coming as $6M deficit looms for 2026-27
Reporting by Justin Marville, Oshkosh Northwestern / Oshkosh Northwestern
USA TODAY Network via Reuters Connect
