Kane County staff: 2026 general fund faces multimillion-dollar shortfall; board weighs reserve use and rebudgeting

KANE COUNTY — County finance staff told the Kane County Executive Committee on Sept. 3 that the general fund is running a structural deficit and will likely draw on reserves to balance the current fiscal year, while public commentators pressed the committee to explain rising costs and to identify revenue or spending changes for 2026.

Finance staff said the county’s amended 2025 general fund budget projects $112.8 million in revenue and $140.4 million in budgeted expenses, leaving a gap that requires an estimated $27.6 million from reserves. "So we are on track to come pretty close to that budgeted $27,000,000 use of reserves," Kathleen Hopkinson, finance staff, said during the meeting. Hopkinson reported the county had collected about $68.2 million in revenues to date against $92.2 million in spending and that second property tax installments were arriving and would increase revenues in the weeks ahead.

Why it matters: The committee must address the projected deficit before the fiscal year end in November and while staff prepare the 2026 spending plan. Public commenters and board members emphasized both the need to control costs and the political sensitivity of revenue options.

Public comments and board discussion: At the start of the meeting, public commenters drew attention to both county spending choices and to the overall budget gap. A speaker identified in the record as Esposito asked why expenses “skyrocketed” after 2020 and highlighted a projected 2026 deficit referenced in materials. Vicky Davidson, a resident, said incremental tax measures tied to inflation were small but necessary to maintain infrastructure and services; she said, "Common sense would tell you that something must give."

During the committee’s financial report, Hopkinson walked through key indicators: she said expected revenues for the year were $72 million while collections stood at $68.2 million; expected year-to-date expenses were $99 million while actual spending was $92.2 million. She flagged a shortfall in building inspection permit revenue (about $700,000 under budget) and noted that permit fees will rise on Jan. 1. Hopkinson also named specific lines under contract and personnel costs that are under budget to date — for example, sheriff’s medical/dental expenses and juvenile board and care — and said some timing items (property tax receipts, pending permits) could change the outlook.

Board members and staff discussed options that would affect the 2026 proposed budget. Hopkinson and other staff explained that large capital projects or delayed work are typically rebudgeted — moved into the next fiscal year rather than newly funded — and that rebudgeting does not create new cash but reallocates forecasted spending across years. The committee asked staff to provide more department-level forecasting so members could see where persistent overages or savings are likely.

Formal action: The committee later moved and approved a 2026 general-fund expense budget amount of $124,766,071 as part of preliminary action on the county budget (motion and roll call recorded on Sept. 3). Staff emphasized that the 2026 numbers would continue to evolve during the October county-board approval process.

What’s next: Finance staff said the county’s external auditors will present the fiscal 2024 audit results at the next county board meeting and recommended the committee monitor pending permit receipts and property-tax transfers in the coming weeks. Board members requested more granular forecasts by department and asked staff to return to the executive committee before the October deadlines with updated proposals and any recommended rebudgets.