Geneva School District 304 adopted its fiscal year 2025–26 budget after a required public hearing, voting to approve a spending plan that reduces the district's fund balance to cover capital projects and ongoing operations.

At a hearing convened Sept. 8, Todd (finance director) reviewed changes since the tentative budget, including grant carryovers, updated state transportation claims and adjustments to salary and benefits. Todd told the board the proposed budget increases total proposed expenditures to $129,481,085 and increases projected revenue to $122,886,972, producing a projected negative operating gap (before transfers) of about $6,594,113.

The nut graf: the board will use fund balance and internal transfers to cover that shortfall and continue planned capital work. Todd said the district began the fiscal year with an estimated beginning fund balance of $74,566,317 and expects an ending balance of $68,106,256 under the adopted plan. To shore up capital projects, the budget moves $2.5 million from the education fund and roughly $4.3 million from operations and maintenance into capital projects, Todd said.

Key details: Todd said some of the change from the tentative budget came from grant carryover dollars and a transportation reimbursement claim completed in August. He also said the district expects to reinvest proceeds from recent bus sales (about $578,000) into the transportation fleet. On expenditures, Todd said capital projects were pared back from the prior year and that the district will continue to record both revenue and expense carryovers where the timing of state reimbursements differs from the year costs are incurred.

Board action and outcome: After the hearing closed, the board voted to adopt a resolution to approve the fiscal year 2025–26 budget. A motion to adopt was made and seconded; roll call recorded the following votes in favor: Paul Berlinski, Molly Ansari, Stephanie Bellino and Jesse Thor. The motion carried and the budget was approved.

Why it matters: The budget sets spending authority for schools and central offices and establishes the transfers that will finance capital projects this year. Todd said the district will file the adopted budget and related resolution with the Kane County Clerk's Office and upload required documents to the Illinois State Board of Education website; the district's financial software (Skyward) will be updated so schools and departments can begin operating under the approved appropriations.

What comes next: Todd said auditors will finalize fiscal year 2024 numbers in December and he will return to the board in October with a five-year projection model and additional forecasting assumptions. He also noted a new state law (Public Act 103-394, the cash reserve balance ratio requirement often called the Miller ratio) requires districts whose cash reserves exceed 2.5 times annual expenditures to adopt an operational reserve spend-down plan; Todd told the board Geneva does not exceed that threshold and therefore does not need an operational reserve plan this cycle.

Ending: The board passed several other routine consent items and scheduled follow-up reporting: Todd will provide a final treasurer's report for July and August at the next meeting and bring further financial updates as audit results and updated levy work come in.