Waukegan CUSD 60 projects $26.6 million FY26 education-fund deficit, urges tax-levy increase to shore up reserves

Waukegan Community Unit School District 60 officials told the board Tuesday that the district’s proposed fiscal 2026 budget shows a structural gap in operating funds and that trustees should consider increasing the tax levy to stabilize long-term finances.

At the board’s Aug. 5 budget workshop, Miss Polk, business-office staff, opened the finance presentation and said the superintendent’s aim is to avoid cutting direct student supports: “The superintendent's intent, no direct student support will be cut,” Polk said. Later she answered a direct question from a board member: “We need the money,” she said, when asked why the district would seek a levy increase.

The proposed fiscal 2026 budget for the education fund begins with an estimated $57 million and projects revenues of about $245 million against expenditures of roughly $271 million, producing an estimated deficit of $26,553,000 and an ending fund balance near $30 million. District staff said that level of reserve can absorb one year’s gap but not a continuing multi-year shortfall.

Why it matters: the district says state and federal revenue sources are uncertain even as expenditures — driven largely by personnel costs — have increased. Finance staff pointed to a long-running effect from property-tax leveling and PTAB (Property Tax Appeal Board) recapture that, according to staff, has left the district roughly $35 million behind what it could have collected since 2017. That, officials said, contributed to the recommendation that the board consider using its full 5% statutory levy increase to help restore lost base revenue.

What officials presented: Anderson Lattimore, the district’s budget analyst, and others walked trustees through the operating funds, multi-year audited balances and cash-on-hand metrics. Staff reported audited operating fund balances rising in recent years and an unaudited working-cash balance of about $41 million; total bank balances across accounts were shown as $121,215,000 as of July 31. Staff also reported days cash on hand for operating funds of about 127 days in the 2024–25 unaudited estimate, above the 90-day benchmark used in past board reports.

Board questions and staff responses focused on how long reserves could be used to maintain program levels and whether continued flat tax levies had hamstrung the district’s ability to recover lost base revenue. Polk and other staff said the district previously used one-time federal ESSER funds for targeted, mostly nonrecurring spending to avoid creating long-term staffing obligations. That strategy, staff said, helped preserve solvency through prior funding cliffs but leaves persistent gaps if evidence-based and categorical state and federal aid decline.

Context and next steps: staff outlined the calendar for adoption: a 30-day public-inspection period for the tentative budget followed by a budget hearing and adoption scheduled for Sept. 9. Staff said they will provide additional cost estimates if the board directs a levy increase and will continue weekly financial monitoring. No formal votes were taken at the workshop.

Ending: trustees asked for more detail on bank accounts and interest earnings; staff said they would follow up on an account labeled as a sweep/insurance account and clarify interest that the district is receiving on funds in various bank accounts. The board did not take action at the workshop; staff noted that any levy decision would come at the formal November levy certification and the September budget-adoption meetings.