District 94 presents FY26 tentative budget with $2 million transfer to capital projects

Dan, a district staff member presenting the tentative FY26 budget, told the board the budget is a plan built from estimated revenues and expenditures and that the district expects a deficit in capital projects this year while maintaining an ending fund balance sufficient for several months of operating reserves. Dan said evidence-based funding (EBF) remains the district’s primary state revenue source; his preliminary estimate of about $9.7 million was revised after state figures to about $9.6 million, an increase of roughly $860,000 in new money rather than the $1 million he initially estimated. He said District 94 remains in Tier 1 of the EBF model and that moving to Tier 2 would require an adequacy mark around 75 percent (the district’s adequacy mark remains near 70 percent). Dan told the board he expects corporate personal property replacement tax (CPPRT) collections to decline and that federal pandemic-era CARES funding has ended, returning federal revenue closer to historic levels. On expenditures, Dan said salaries and benefits make up the largest portion of spending (about 63 percent) and cited expected increases due to recently ratified contracts, transportation costs (projected +18 percent), energy contracts and ongoing special-education tuition growth. Capital projects planned for next summer — listed from the facility plan prepared with architect DLA — include replacing roof sections labeled "1926," resurfacing the south parking lot (delayed from last year), an auditorium facelift for a 100th anniversary, LED stadium lighting and a life-skills transition apartment for special-education students. Dan recommended transferring $2,000,000 from the operations and maintenance fund to the capital projects fund, with bids and vendor details to be presented as they are finalized. Board members asked for a longer-term cash-flow forecast; Dan agreed to provide a five-year projection for the final budget presentation. No budget approval vote was taken at the Committee of the Whole meeting; the tentative budget will be published and return for board consideration at the August/September meetings with final filing by Sept. 30 if approved.