Rockford SD 205 reviews draft FY26 budget, weighs sales-tax referendum and fall working-cash bond

Doctor Brown, a district presenter, told the Rockford Public Schools Board of Education on June 4 that the fiscal year 2026 budget presented to the board is a draft and already partly out of date.

The presentation outlined revenue and expense pressures and several funding options for the district—s facilities master plan, including pursuing a county school-facility sales tax and issuing working-cash bonds later this year.

Why it matters: the draft shows the district facing a multi-million-dollar operating deficit and rising costs for employee benefits and transportation. Board members asked when the district would know whether federal Title II and other grant money will be available and how any referendum would be structured and timed.

Doctor Brown said the state reduced its planned evidence-based funding by $43,000,000 and that the district is conservatively assuming a $10,000,000 increase in tier funding for FY26. At the federal level, he said a continuing resolution loaded Title I and Title IV at FY24 levels but set Title II funding at $0; carryover funds could mitigate that but are not guaranteed. Doctor Brown said carryover for Title II this year was "just under $4,000,000," with an annual allocation roughly "in the neighborhood of around $2,000,000." He added the district will proceed assuming no new Title II funds.

On expenses he highlighted health-care cost increases the district expects to be about $6,700,000 higher than the prior year. The draft budget shows roughly $480,000,000 in total revenues and a projected deficit in operating funds that the district estimates could be about $3,300,000 after adjusting for federal commodities recorded in food service.

On capital and facilities funding, Doctor Brown reviewed two primary options: a traditional property-tax referendum and a county school-facility sales tax of up to 1 percent, collected at the county level and distributed to districts by student counts. He said a 1 percent county sales tax in Winnebago County could generate in the ballpark of $20–$25 million annually for Rockford SD 205. He also said the district could issue new bonds, use a pay-as-you-go approach, or retire existing debt with the sales-tax proceeds.

Doctor Brown said the district expects to recommend issuing working-cash bonds this fall, likely in the $25 million to $30 million range, to keep current facility projects moving while the board considers a longer-term referendum. He said that, if pursued, language for a sales-tax question would require coordination with other county districts because districts representing more than 50% of county enrollment must approve consistent ballot language.

Board members pressed staff for timing and contingency details. Miss Haley (Board Member) asked when the district would know whether Title II carryover would arrive; Doctor Brown replied that carryover could be known in August but sometimes not until October or November. Miss Stanford asked what happens if the district cannot legally adopt a balanced budget; Doctor Brown explained state statute expects a balanced budget but that in past experience districts have sometimes adopted deficit budgets and later closed them through expenditure controls and revenue adjustments.

Doctor Brown said he will return to the committee of the whole in July with a more detailed timeline and cost estimates, including borrowing-rate assumptions and a recommended path if the board decides to pursue a referendum in March 2026 (primary) or November 2026 (general election).

The board did not take formal action on the FY26 budget at the June 4 meeting; Doctor Brown said a tentative budget will be posted for board review in two weeks and that further votes would follow the typical public-notice timeline.

The discussion closed with staff noting the legal and practical constraints on each funding source and a request for more detailed borrowing-cost estimates at the July meeting.