Chris Wildman delivered an update on the Community Consolidated School District 46 preliminary budget on July 16, saying the operating budget presented at tentative adoption showed an $1.8 million deficit and that reductions or pauses to federal and state grants could increase that shortfall to about $2.1 million. "The current operating budget as presented was $1,800,000 deficit," Wildman said, later adding, "If that is actually what we have, we're at $2,100,000 deficit." The budget will remain on public display through mid-September and the district plans a public hearing on Sept. 17 and a state filing on Sept. 30.

Wildman told the board the recommended budget now includes the full cost of the newly ratified Grayslake Federation of Teachers contract and that a state teacher vacancy grant allocation decreased from $185,000 to $123,383. He said several federal funding streams the district relies on'10including Title I, Title II, Title III and IDEA'10are uncertain because a federal executive action paused some grants and loans. "We don't believe we're going to receive anything" for Title III this cycle, he said, because a needed grant application has not been released.

Why it matters: Wildman said the district relies on federal and state allocations to plan multi-year programs for students, including special education services and language-instruction supports. He highlighted broader federal budget changes that may reduce Medicaid funding by 15% over the coming decade and could impose work requirements on SNAP, which in turn could reduce the number of students who qualify for free- and reduced-price meals and affect related program funding.

What the district will do next: Wildman said the administration and board will continue to monitor litigation and federal actions, prepare updated financial projections, and present a revised five-year outlook. He listed near-term process milestones: continued public display of the proposed budget, a Sept. 17 public hearing, and the planned state filing on Sept. 30. He also noted advocacy actions: the board received notice from the Illinois Association of School Boards encouraging contact with federal legislators, and one board member offered to help coordinate a letter or meeting with U.S. Rep. Brad Schneider and state senators.

Questions from board members focused on the timeline and the impact on staffing and program choices. Wildman emphasized the uncertainty in federal allocations and said district staff will prepare scenarios with reduced federal revenue and report back.

Background and authority: Wildman reminded the board of the district's bond policy (4:20) guidance to maintain a general operating fund balance between 25% and 30%. The presentation included a slide-by-slide comparison of previous allocations, expected allocations, and actual allocations as of the meeting.

Budget context: With the funding uncertainties, Wildman asked the board to prepare for a possible $2.1 million shortfall in fiscal 2025 6 and to use the finance committee calendar set for the fall to review long-range financing, audit results and preliminary budget recommendations. The district scheduled a finance committee session for Sept. 17 to receive a long-range financial plan update and a financing presentation from Raymond James, and an audit update from Baker Tilly on Nov. 19.

The board did not take a final vote on reductions at the July 16 meeting; Wildman said more work will follow as the district monitors state and federal developments and refines projections.