District finance director outlines FY26 budget outlook: property-tax growth, federal funding declines and staffing costs are central

District staff presented FY26 budget information to the Board of Education as an informational report; the board did not adopt a budget at the meeting. Amir (staff) told members the district is preparing a tentative budget for approval on Aug. 5 to begin the required 30-day public-inspection period, with a public hearing and final adoption planned for the Sept. 16 meeting.

Amir said the district currently expects higher local property-tax revenue — budgeting roughly 15% more than the prior year — while federal funds have decreased as a share of total revenue from about 10% to roughly 6%. He attributed the local increase to higher assessed values and new construction. Staff cautioned that some federal programs remain uncertain and may be reduced or not renewed; the district is budgeting conservatively and will reissue numbers on Aug. 5 and again on Sept. 16 as more information becomes available.

Amir described state funding changes tied to the state's evidence-based funding formula and "tier" allocations. The district moved in prior years from an adequacy level of roughly 58% toward higher levels, and was at about 86% last year; the district's current tier assignment is 2, which reduces incremental state support compared with earlier tiers. Amir also noted property-tax-relief grant payments from the state have been uneven and that the district is not budgeting a material amount for a new round until grants are confirmed in early August.

On specific revenue items, staff said the Corporate Personal Property Replacement Tax (CPPRT) is being prorated and is expected at roughly 30% of prior collections; transportation reimbursement will be prorated to about 71% for regular routes and about 61% for special education routes; Medicaid reimbursements for eligible services were about $916,000 last year and are being budgeted conservatively; and the National School Lunch Program supports roughly $3.6 million in meal service funding for the district, a line item staff is monitoring for federal-level changes.

On expenditures, Amir said salaries and benefits comprise about 67% of the district budget and recent contract settlements have materially increased that line. He warned the district faces a multi-year debt payment tied to new construction (a previously financed school, roughly $33.8 million in construction) and an annual debt-service payment of about $2.7 million in the near term. He said the district targets fund balances consistent with guidance in the Illinois School Code — generally 20% to 30% of operating expenditures — to provide a cushion for revenue interruptions. He also warned that a potential state-level property-tax freeze or shifting pension (TRS) obligations to local funds would negatively affect the district's fiscal outlook.

Amir said the presentation is informational and that staff will present the tentative budget on Aug. 5 for public inspection. The board and staff discussed further review by the district's finance committee and additional details that will appear as figures are finalized.