Sandy Cullen:

Madison School District administrators are projecting a $7.96 million gap between what it would cost to continue the same services next year and what it will be able to raise under state revenue limits.
A gap of $6 million to $10 million had been projected.

[ed: 2005-2006 budget is $321M+]
There are many factors that affect the district’s budget including enrollment (flat or slightly declining – every time a student leaves, the district loses spending authority), state and federal redistributions, state spending caps (district spending, which increases annually is limited by enrollment and a % growth), health care costs and program choices among many others. Details here.