Dixon Unit School District 170 adopts FY26 budget amid $1.6 million projected deficit

Dixon Unit School District 170 adopted its fiscal year 2026 budget at the school board meeting Sept. 24 after a public hearing. Board members voted to approve the FY26 budget after administrators said the plan projects a $1,602,925 deficit and includes an anticipated 8.5% increase in health-insurance costs that will take effect Jan. 1. The budget presentation noted that federal ESSER funding is no longer included in revenues and that some revenue lines that previously included ESSER will appear smaller compared with prior years. The budget matters because roughly 70% of the district’s spending is for salaries and benefits. District staff told the board they will present a multi-year deficit-reduction plan and quarterly updates so trustees can monitor progress. During the hearing, staff reviewed highlights: a projected deficit of $1,602,925; reductions in grant and evidence-based funding; a planned 8.5% health-insurance rate increase effective Jan. 1; an insurance rebate of about $700,000 that officials said may offset part of the shortfall depending on accounting; and no significant capital outlay until 10-year planning is complete. “The fiscal year 26 budget has been on display and available for public viewing for the past 30 days as required by law,” a board officer said during the hearing. In presenting the budget details, a district staff member said, “As always, we are pretty heavy with our, we try to be heavy with our inflation of salaries,” and reminded trustees that ESSER funds are not in this budget. The presenter also said the district will bring a comprehensive staffing analysis and a deficit-reduction plan to the board in upcoming months. Board members pressed staff on monitoring and triggers for action. A trustee asked when spending freezes or other measures would begin; staff said building-level budgets could be frozen later in the year so that outlays would be limited to salaries, benefits and essential utilities. Staff also said they will monitor finances monthly and provide quarterly updates to the board. Trustees voted in roll call to approve the budget. The board publicized the hearing and will distribute the adopted budget to county clerks and the Illinois State Board of Education as part of the statutory process. Less urgent details discussed during the meeting included transportation-contract renegotiation savings, a completed bond issuance, and modest new revenue from the Dempsey facility. District staff said they had targeted about 15 approaches to reduce expenses over the next three to five years and emphasized that many revenues are restricted for specific uses. The board’s adoption of the budget concludes the hearing process; staff said they will return with detailed savings proposals, staffing analyses and regular financial updates.