Elwood seeks 4.2% tax-levy override to close $1.5 million gap in proposed 2025–26 budget
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Summary
District leaders presented a $79 million 2025–26 proposed budget that exceeds the district's allowable levy growth and asks voters to approve a 4.2% tax-levy increase to cover a roughly $1.5 million remaining shortfall; officials say targeted cuts and reserve use have narrowed the deficit.
The Elwood Union Free School District presented a proposed 2025–26 budget calling for a 4.2% tax-levy increase — above the district's allowable 1.29% growth factor — and asked voters to approve the override to close a remaining deficit of about $1.5 million, district officials said at a budget hearing Wednesday.
The proposal, the district said, would fund a general fund budget of about $79,000,000 while preserving classroom programs and using a combination of targeted reductions, reserve withdrawals and fund balance to narrow a previously larger deficit. "A 4.2% levy increase does not equate to a 4.2% increase on your taxes," the presenter said, noting an online tax calculator the district has published with sample household impacts.
Why it matters: the proposed levy exceeds the district's allowable growth factor and therefore requires a 60% supermajority of voters to pass. If voters reject the proposal twice, district officials said they would be forced to adopt a contingent budget that would require an additional $2.2 million in reductions.
Most important facts: the district reported an initial projected deficit of about $2.7 million. Administrators said they identified roughly $1.1 million in targeted expenditure reductions and secured about $100,000 in additional revenue, leaving a remaining gap of about $1.5 million. To cover short-term needs the budget as proposed uses roughly $800,000 from the Employees' Retirement System reserve, $500,000 from the Teachers' Retirement System reserve and roughly $2.5 million from undesignated fund balance in total across the revenue plan, figures the presenter included in the slide deck.
Revenue details presented included roughly $19,000,000 in state aid and $575,000 in PILOT (payment in lieu of taxes) receipts. The presenter repeated that reserves and fund balance are finite: "If we continue to spend them down, we won't have them in the future to help offset deficit." The district said the 2025–26 levy amount was adopted as the board's proposed levy on April 10.
What board and staff said: Superintendent Dr. Steele and the budget presenter (identified in the meeting as Ms. Dunkel) described specific categories where reductions were made, and said the district avoided program eliminations by using attrition and targeted cuts. "We've already eliminated four teaching positions" by attrition and reduced professional development, overtime, some transportation costs, equipment purchases and nonessential materials, the presenter said during public questioning.
Public comment and questions: residents raised concerns about the cumulative tax burden once other jurisdictions' levies are added. One resident asked whether administrators had sought additional internal savings before asking households for an override; the presenter pointed to the $1.1 million in reductions and the use of reserves and fund balance described above. Questions also touched on the end of a 10-year PILOT agreement that will reduce that revenue stream after 2025'26.
Next steps and directions: the district scheduled two additional public budget forums to answer questions on May 13 and May 14 and reminded residents the budget vote and Board of Education election are on May 20. During the hearing the board voted to open and later close the public budget hearing (both motions recorded as carried 5-0). The district also directed staff to keep the community informed and to provide the online tax calculator for residents to estimate individual impacts.
Discussion vs. formal action: the meeting included a public hearing and discussion; the formal board actions on the record at the hearing were procedural motions to open and to close the hearing (both recorded 5-0). The board previously adopted the proposed levy on April 10, an action referenced by the presenter; no district-wide budget adoption by voters occurred at the meeting.
Where to find more: the presenter said the district's website hosts the full slide deck and a tax-calculator tool residents can use to estimate the impact on an individual property.
