District adopts tentative FY26 budget amid revenue timing shifts and rising costs

The Evergreen Park Elementary School District 124 Board of Education on Aug. 13 approved a tentative budget for fiscal year 2025–26 after district finance staff described an expected drop in some revenues and cost increases in several areas.

Finance staff presented figures showing real estate tax receipts will be lower this year in part because of timing of payments and a property tax relief grant abatement; the presentation projected a roughly $2.6 million decrease in real estate tax revenues and an approximately $1.8 million abatement tied to the property tax relief grant. The presenter also cited a projected $1.3 million decrease in federal or one-time grant revenues and a $250,000 increase in transportation costs. "Statement of expenditures for July, very minimal," the presenter said during the report.

The district reported revenues budgeted across all funds at $36.243 million and expenditures of $38.602 million, including a projected non‑capital surplus of about $141,000 when certain one‑time capital borrowing is excluded. The education fund showed budgeted revenues of $28.9 million and expenses of $29.4 million, a tentative deficit of roughly $472,000; operations and maintenance showed a tentative deficit of about $176,000. The presenter said salary increases average about 5% in the budget and that insurance costs rose roughly 10% year over year.

Board members moved and voted to approve the tentative budget; the vote was recorded by roll call and the motion passed. The district will publish the final budget next month, after additional adjustments and inclusion of newly confirmed grant awards.

Why it matters: the tentative budget sets the district's baseline spending and revenue expectations for FY26 and frames further decisions before the final budget adoption. Staff said timing of tax and grant receipts and ongoing payments for Southeast and Southwest construction projects are the principal drivers of the changes.

Details and next steps: staff noted the district received some grant news after the presentation and will reflect those in the final budget; for example, a Title II award of $50,000 for professional development was confirmed and will be included in next month's materials. The board voted to adopt the tentative budget and will consider the final FY26 budget at the board's next regular meeting.

The board took the budget vote as part of the meeting's consent and action items and did not change tax levies during the session.