District 58 business manager flags shrinking margins, soaring transportation costs in FY26 tentative budget

Downers Grove Grade School District 58’s business manager told the board Monday the district’s tentative fiscal 2026 budget shows a tight surplus and rising mandated costs, particularly transportation, that will require careful monitoring and possible adjustments before final adoption.

Greg Harris, the district’s business manager and treasurer, presented the tentative FY2026 budget and said operating funds remain broadly balanced but growth in transportation and fixed mandates is stressing the district’s reserves. “The surplus amount is about a $128,197,” Harris said, noting the district was projecting a small surplus but that the number will be refined before the Sept. 8 public hearing and the board’s planned adoption later that month.

Key fiscal points presented: - Revenue mix: roughly 80% of district revenue comes from local property taxes; state Evidence Based Funding (EBF) and federal grants make up smaller shares. Harris said District 58 is now in a higher EBF tier and will not receive the same share of any future state EBF increases as lower‑tier districts. - Transportation costs: Harris said total district transportation spending rose from about $4.4 million in 2019 (pre‑COVID) to a projected $7.7 million — “a 75% increase in 7 years,” he said — driven largely by higher labor costs, contractor market conditions and increased special‑needs and homeless transportation. He said state reimbursements for transportation (the mandated categorical, or “MCATs”) are being prorated and have not kept pace with that growth; tentative reimbursement this year was projected at about $2.6 million. - Grants and federal funds: district officials said ESSER funds have expired and warned that titles 2, 3 and 4 face federal budget risk next year; IDEA and NSLP (National School Lunch Program) funding and other federal streams were described as more stable for FY26. - Capital and referendum: the district is spending referendum bond proceeds on construction; those bond proceeds are restricted to capital use and cannot be applied to operating shortfalls. Harris said about 70% of the phase‑2 referendum work was complete and expected to be about 80% complete by September; a utility pole blocking Herrick’s new bus lot remains an external delay tied to ComEd and other utilities.

Board members asked for more granularity on transportation by category (regular, special education, McKinney‑Vento homeless transport) and for an FAQ or clearer public materials explaining EBF, transportation drivers and the district’s fund‑balance targets. Harris and other administrators said they will refine cash‑flow monitoring, verify year‑end fund balances with auditors and return with an updated final budget for adoption after the public hearing on Sept. 8.

The district posted the tentative budget for the 30‑day public display required by Illinois law. The board will hold a public hearing on the tentative FY2026 budget on Sept. 8 and is scheduled to adopt a final budget at that meeting.