The CCSD 21 Board of Education on July 24 voted to place its tentative fiscal year 2026 budget on public display and publish notice of a public hearing, beginning the formal 30-day notice process ahead of final adoption.

Director of Finance Mike Zager presented a high-level summary of the tentative budget and the calendar for adoption. Zager said the tentative operating budget shows an increase of about $8.3 million from the prior year and highlighted major cost drivers including salary increases (the contract line), expected health insurance premium increases (about 10 percent projected), and benefit and purchased services costs. He said revenues are largely flat year over year because some state and federal funding has ended, and that the district uses conservative revenue assumptions and higher expenditure estimates when preparing the tentative budget.

Zager told trustees the district’s fund-balance policy target is 35 to 45 percent of expenditures and said the district currently remains ‘‘well above that’’ even after planned construction transfers. He explained the construction fund will spend about $16 million this summer on projects already funded and that the district expects to reconcile estimates before the final hearing.

On the timeline, Zager said the board will schedule a public hearing and final vote in September with a required filing deadline at the end of the month. He explained staff will continue to true up estimates between July and the final hearing so the September presentation will reflect finalized numbers.

Board members discussed reserves and federal and state funding uncertainty. One board member noted the district’s $5.5 million in federal school-meal funding is tied to agricultural programs and is unlikely to be cut, while Zager said federal or state changes remain an unknown. The board approved a motion to display the tentative budget and publish notice of the public hearing; the hearing will precede the board’s final adoption of the FY2026 budget.

The board did not adopt a final budget on July 24; staff said the final budget will be considered at the September hearing and must be filed by the statutory deadline. Zager emphasized staff will refine revenue estimates and adjust the property tax levy, if needed, to maintain board policy on fund balance.