Board adopts $165.8 million fiscal 2026 budget after public hearing on operating deficit and construction spending

The Board of Education adopted a fiscal year 2026 budget Sept. 15 that shows $165.8 million in total expenditures and $110.86 million in total revenues, leaving a planned use of fund balance tied to construction and other one-time costs. The budget was presented at a public hearing earlier in the meeting and then approved by roll call during the business session.

District staff presented the budget and explained why the operating position is in deficit. The presenter, Mr. Bertolozi (district staff), said the tentative budget approved in August was adjusted after the state increased the corporate personal property replacement tax estimate by $1,900,000. "We did increase estimated revenues by that amount, and that is the, the only change, that we have, to the budget," he said. He described a structural operating deficit and additional one-time construction spending tied to implementing full‑day kindergarten.

The presentation gave the board numerical detail: the tentative budget figure of about $108.9 million in initially reported revenues was increased by $1.9 million to roughly $110.6 million; expenditures remained about $165.8 million, producing a headline deficit tied in part to planned capital work. Mr. Bertolozi said that when the district factors in $42 million for construction plus roughly $3.5 million for architect fees and about $1.25 million for construction management, the operating deficit moves from a larger figure toward an $8.2 million operating deficit after accounting for those capital amounts.

Mr. Bertolozi also stressed that the district is not alone in facing revenue pressures from the expiration of pandemic-era federal funding, lower CPI, and uncertain state support. He warned that timing of Cook County property tax collections could affect cash flow; he reported counsel had suggested county payments might arrive in November but that timing remained uncertain.

Board members and staff emphasized the district's fund balance and planned use of it. During the hearing Mr. Bertolozi stated, "As of 06/30/2025, we had a $119,577,976.60" fund balance and that district leaders expected to use some of those funds in the coming 12–18 months to cover full‑day kindergarten startup costs.

After presentation and discussion, the board moved to adopt the budget for the fiscal year beginning July 1, 2025. The motion passed on roll call (Garrett, Aaron, Masa, Morley, Valvano and Duckman recorded as voting aye). The board packet shows fund-level revenues and expenditures for education, transportation, IMRF, social security, tort, and other funds; total revenues were listed as $110,860,576 and total expenditures as $165,821,948 in the motion language.

The budget adoption makes the tentative budget the final adopted budget and directs staff to file required documents. District officials said they will continue deficit‑reduction planning and examine operational areas including transportation costs, health insurance procurement, staffing levels (FTEs), and potential redistricting or class‑size actions as bargaining and capital timelines proceed.

Board members and the presenter noted the difference between one‑time construction/capital spending and ongoing operating costs and emphasized the intent to protect fund balance while addressing programmatic priorities and mandated changes.