District 88 board adopts $92.7 million operating budget, including $4 million working-cash bond

The District 88 Board of Education adopted its fiscal 2025–26 operating budget on a recorded vote after a public hearing and presentation by district staff. The adopted operating revenue is about $92.67 million and the adopted operating expenses are just under $92.30 million; the budget includes $3.95 million in expected net proceeds from a $4 million working-cash bond issued next week.

Why it matters: The included bond proceeds shift the operating picture from a sizable projected shortfall to a modest surplus on paper; excluding the working-cash proceeds, the district projects an operating deficit of roughly $3.57 million. That gap, plus changes in state categorical funding and one-time project spending, will affect reserves and near-term capital planning.

District finance staff presented the final budget after the tentative budget was displayed for the required public-inspection period. "The operating fund, revenue is a little over $92,600,000," said Mr. Demrocki during the presentation. He told the board the tentative budget shown in June reflected an estimated deficit of about $3.7 million and that the working-cash bond proceeds were added to the revenue side to cover cash needs.

Key figures and assumptions included in the presentation: - Operating fund revenue: about $92,670,000; operating fund expense: just under $92,300,000. The presentation highlighted a $374,313 surplus on paper driven largely by the working-cash bond proceeds. Excluding those proceeds, staff said the district would face about a $3.57 million deficit. - Working-cash bond: planned $4,000,000 issuance with net proceeds of about $3,950,000; the district expects to close the issuance the week after the meeting. - Property tax revenue: just under $68,000,000 and estimated to account for roughly 73% of operating revenue (this percentage would be higher absent the working-cash proceeds). The budget assumes a December 2025 levy/extension increase of 4% within the state tax-cap rules (lesser of 5% or CPI plus new property). - Reserves/fund balance: projected fund balance of about $27.7 million (presented on screen as roughly $27.7M) and a net cash balance of about $34.6M when including early June property taxes as presented. - State aid and categoricals: the district remains in tier 2 of the Evidence-Based Funding formula and qualified for an additional adequacy allocation of $96,578; staff cautioned some categorical aid (for example, transportation and special education) may be prorated based on statewide claims. - Federal and one-time items: staff removed roughly $242,000 in ESSER carryover from this year’s revenue, shifted some Title II allocations into the local operating budget (about $100,000 budgeted for professional development if no rollover is provided), and included expected E-rate reimbursements for network switches and wireless access points. - Expenditure highlights: finalized salary and staffing adjustments; net reduction of 3 administrators (2.8 FTE certified) and reductions of three clerical/technical positions; increases in special-education private tuition (staff noted a $325,000 increase) and higher projected transportation and contracted services costs. Capital projects included in this budget cycle were listed as auditorium repairs, turf replacement, hot water system work and other site projects.

Board action and votes: After the public hearing was opened and closed with no public comments submitted, a motion to adopt the annual budget carried on roll call. Recorded yes votes for the adoption included Olsen, Cuellar, Finnegan, Stout, Taylor, Galvin and Keane; the motion was announced as approved.

Related financial actions: The board also approved a special-purpose treasurer surety bond to cover the increased cash on hand when the working-cash bond closes. The board accepted a proposal to purchase a $400,000 special-purpose treasurer's surety bond for a premium of $664 from 1 80 Brokers Risk; that motion was approved on roll call.

What the board directed: By adopting the budget, the board approved the revenue and expenditure plan as presented and authorized staff to proceed with the near-term actions described in the budget presentation, including closing the working-cash bond and implementing the listed capital and staffing adjustments as funds permit. Staff indicated a planned transfer of up to $1,000,000 from working cash to capital projects if needed, and said they will report back if projects or additional needs arise.

Discussion vs. decision: The meeting record shows the staff presentation and board discussion (questions were minimal) as the discussion phase; the formal votes to close the hearing, adopt the budget and accept the treasurer's bond proposal were recorded decisions. No additional binding direction beyond approval of the budget and the bond purchase was recorded in open session.

What’s next: Staff said prorations for state categorical aid will not be known until after the state’s true-up process in October; district leaders also said they will meet with the assessor’s office to refine the estimate of new property for the levy calculation. Staff committed to update the board if prorations or revenue collections materially change.