McHenry Unit 15 posts tentative FY26 budget showing small deficit driven by capital projects

McHenry School District 15 officials presented a tentative fiscal year 2026 budget July 22 showing $87.8 million in projected revenues and $88.3 million in proposed expenditures, producing a roughly $500,000 deficit driven chiefly by ongoing summer capital projects.

The tentative budget, which district staff described as a planning document, will be on public display for 30 days at the district reception desk and online. A public hearing on the budget is scheduled for the board’s Aug. 26 meeting; the district intends to adopt a proposed budget by Sept. 3 and file required documentation with county offices by Sept. 30.

Why it matters: The tentative plan funds next year’s schools while allowing the district to complete larger capital projects this summer. Officials said the shortfall is a planned drawdown tied to construction and that core operations remain largely funded.

Mr. Schubert, the staff presenter of the budget, told the board the figures are a working estimate and that the board has 30 days to review and the ability to revise the document during the display period. He said federal grant uncertainty — notably a possible loss of Title II funding — could reduce grant revenue by roughly $200,000, and that the district would adjust the proposed budget if definitive guidance arrives.

The presentation broke down major revenue and expense drivers. Property taxes remain the district’s largest revenue source, and staff noted the consumer price index used for the 2025 levy will be 2.8 percent. The district reported evidence‑based state funding of about $10.2 million. Schubert said overall revenue projections show a roughly 5 percent increase from the prior year, driven mainly by local property tax receipts and investment maturities.

On the expense side, the tentative budget assumes approximately a 1 percent increase in salaries, about a 10 percent increase in employee benefits (driven by insurance and coop adjustments), a 3 percent increase in supplies and materials, and a 5 percent increase in capital outlay compared with the prior year. Schubert summarized the district’s overall beginning fund balance at about $82 million and explained that once capital funds (funds 30 and 60) are removed from the state’s review calculation, the district’s operating funds would show a surplus rather than a deficit.

District staff emphasized the tentative budget reflects planned capital work already under way: roughly $4.5 million remains from the summer 2025 projects, including a new track installation at MMS, flooring and asbestos abatement at Valley View, mechanical and partial roof work at Edgebrook, restroom work at Hilltop, and parking lot work at Duker and Riverwood. Staff described a strategy of focusing on one building per summer for deeper renovations to limit recurring disruptions.

Board members asked procedural and timing questions about the possible federal funding reductions and whether removing an anticipated $200,000 from the tentative budget now would require reposting the tentative budget for public view. Schubert and other staff explained the district can make changes during the 30‑day display period and that an amended budget is required only if expenditures exceed statutory thresholds (generally a substantial percentage change). Schubert said the district would not likely hit the amended‑budget trigger from the potential federal reductions alone.

Staff reiterated the public timeline: the tentative budget is on display now, the Aug. 26 meeting will include a public hearing on the budget, and the board will act to approve the proposed budget before the statutory date. The administration said it would continue monitoring federal guidance on Title II and other programs and bring adjustments to the board if necessary.

Ending: The board heard the tentative plan, asked clarifying questions and directed staff to continue monitoring federal funding and to prepare the proposed budget for the August hearing.