Effingham Unit 40 board adopts FY26 tentative budget showing education fund deficit, plans cuts

The Effingham Unit 40 School Board approved a tentative fiscal year 2026 budget after hearing staff describe projected deficits and contingency plans. Finance director Ms. Baker and district official Mr. Johnson presented the tentative FY26 budget at the Aug. 11 board meeting and described revenue uncertainty tied to PPRT figures. "This is tentative because at the time when I built it, I did not have PPRT numbers," Ms. Baker said. Board members were told the education (Ed) fund shows a projected deficit of $730,975 in the proposed budget, driven by increased operating costs, a textbook adoption and step increases for certified and non-certified employees pending contract negotiations. Ms. Baker said the district has discussed cutting all areas by 10% or more and will update the budget after state revenue (PPRT) numbers are known. The presentation included specific fund estimates: an ending fund balance of $9,308,719 in the Ed fund if every line is expensed; an operations and maintenance (O&M) projected gain of $370,346; a transportation gain of $227,618 that incorporates the purchase of nine buses ordered two years ago and expected to be delivered in January. Ms. Baker said, "That is with the purchase of 9 buses that we ordered 2 years ago. So we do anticipate those to be delivered in January." Ms. Baker said the district built contingencies and will post the tentative budget for a 30-day public review period and return to the board with revisions: "The budget will be out for 30 days, and people can come review it. And then I do plan to make some changes before the next board meeting, and I'll highlight those." Discussion: board members asked about staffing and longer-term effects. Ms. Baker said the district headcount fell from about 440 last year to 421 this year and reiterated that staff reductions and expense trimming are under consideration. Formal action: Board member Chad Thompson moved to approve the FY26 tentative budget resolution; Board member Andrew Altman seconded. The board approved the resolution by roll call; all recorded votes were affirmative. Next steps: The district will update the tentative budget with final PPRT figures and bring a revised budget to the board at a later meeting, after the 30-day public posting period.