Board hears FY25 unaudited results and reviews FY26 final budget assumptions; True North membership under review

District finance staff presented unaudited fiscal-year 2025 results and a proposed final fiscal-year 2026 budget, and trustees received an update on the district's membership in the True North cooperative.

Finance staff reported that overall revenues for FY25 came in about 1.2 percent above budget while expenses were about 3.8 percent below budget, producing an unaudited surplus of roughly $7.6 million (about 8.6 percent of total expenses across funds). The board previously transferred $5 million of that surplus to offset budget needs, district officials said. Administrators cited disciplined spending and timing of capital projects as reasons for the favorable variance.

For FY26, the district presented a final budget showing an operating-fund deficit smaller than in the tentative budget. The operating fund deficit was presented as approximately $1.7 million after updated revenue assumptions (including confirmation of Preschool for All funding and increased Title I funding). The presentation also reflects $7 million in construction costs and a $1 million curricular materials allowance; the budget includes a planned ongoing $3 million annual allocation for building maintenance following the referendum. Finance staff noted healthcare-benefit procurement discussions may reduce benefit cost assumptions later in the year.

The board discussed fund-balance ratios and a new statutory metric (referenced to PA 1030394 in the presentation) that compares ending cash and investments to average expenses; staff said the district is within acceptable ranges and not at risk of having an excessive fund balance that would invite legal challenges. Trustees discussed the possibility of short-term cash-flow borrowing if Cook County property-tax billing is delayed; staff said they would analyze cash flow and present options if needed.

Separately, district leaders updated the board on True North, a cooperative that provides special-education programming. Superintendent and staff said True North held special meetings after the resignation of its superintendent and that districts are considering two paths: maintaining True North in a revised form or dissolving the cooperative. The district said it will leave the cooperative effective July 1, 2026, and that special-education students currently participating in True North programs will continue to be served during any transition.

Board members were told a public hearing on the FY26 final budget will be held next month and that the district will submit required documents to state agencies in October. The finance team also reported it interviewed auditors and will bring an auditor contract recommendation to the board soon.