Dixon USD 170 sets budget hearing; administrators cite $2 million health-insurance-driven deficit

The Dixon Board of Education voted to set a public budget hearing for the 2025 fiscal year and discussed steps staff will present next month to align the district's budget.

District staff told the board the budget on the table is a deficit budget and that two factors account for most of the shortfall: one-time federal aid the district received over recent years, and a roughly $2 million increase in health insurance costs.

A staff presenter explained the district received about $16 million in one-time federal funds over the past five years that will not recur. The presenter said health insurance costs increased from approximately $5 million to $7 million in the most recent year and "if you just want kind of a round number" the current budget gap is about $2,000,000. The staff member said next month's board packet will include a detailed summary comparing the adopted budget to the disamended budget and a set of strategic options to bring the budget into alignment.

The board voted to set the budget hearing and to place the budget documents on public display and post required notices. The board was told a public notice will appear in the newspaper and the district said the budget is posted online for review.

Board members asked when staff would present corrective options; the presenter said a more detailed plan and trade-offs will be before the board next month. The district's business administrator also noted the county facility sales tax receipts are being monitored as an additional revenue source and that small sales-tax increases in January produced a modest revenue uptick.

The motion to set a budget hearing passed on roll call with all board members present voting aye.