Rockford board adopts amended 2025 budgets, approves 2026 proposed budgets and certifies tax levies

The Rockford Public Schools Board of Education approved a series of budget, tax and administrative actions at its Feb. 24 meeting, including revised fiscal-year 2025 budgets, proposed budgets for 2026, certification of the 2025 tax levy (L-4029), and ratification of the district’s 2019 bond third series.

Finance director-level staff presented budget revisions and the proposed FY2026 starting budget before the board voted. Miss Clements presented the revised FY2025 general fund budget showing total expenditures of $118,565,671 and total revenues of $112,614,930, leaving a projected deficit of $5,900,000 and an estimated ending fund balance of $14,009,910 (11.8% of general fund expenditures). The board approved the FY2025 revised general fund budget by motion and voice vote.

The board also approved revised and proposed budgets for the food service, activity and public trust (scholarship) funds. The revised food service budget shows revenues of $4,478,016 and expenditures of $4,599,553 with a planned deficit of $121,537 and an ending fund balance of $1,104,189. The district noted that federal pandemic-related funds have ended and that state and federal nutrition funding levels for next school year remain uncertain.

For FY2026 the board approved a proposed general fund starting budget that assumes a foundation allowance of $10,000 per pupil and budgets for a 100 FTE enrollment decrease to an estimated 7,430 FTE, producing a proposed deficit of $5,262,047 and a projected ending fund balance of $8,747,008 (7.5% of expenditures). The board adopted the proposed FY2026 budgets to allow planning and said the budgets will be revised as state revenue and enrollment figures are finalized.

Separately, the board approved certification of the 2025 tax levy (L-4029), which sets the district’s levy schedule and authorizes the tax collecting entities to collect amounts the district presented in the L-4029 form.

Other actions approved in the meeting included: a resolution ratifying the district’s 2019 bond third series pricing, a purchase of cafeteria furniture for the Rockford Freshman Center totaling $48,461.63, approval of administrator contract renewals on the district’s rolling schedule, certified staff hires (replacement hires), acceptance with regret of an administrator resignation, approval to participate in MHSAA activities, and a KISD millage resolution authorizing the intermediate district to place its renewal millage on the November ballot.

Board members asked questions during the budget presentation about state funding assumptions (foundation allowance history and the state’s consensus revenue process), the district’s reliance on people costs (approximately 79% of expenditures), and the timing of state budget decisions. The board discussed outreach to the district’s families and legislators to advocate for stable state funding and noted the importance of the KISD millage to the district’s per-pupil revenue.

Votes at a glance

- FY2025 revised general fund budget: Approved (motion by Christie; support Andrea) — Expenditures $118,565,671; Revenues $112,614,930; Projected deficit $5,900,000; Ending fund balance $14,009,910 (11.8%).

- FY2025 revised food service budget: Approved (motion by Christie; support Kelly) — Revenues $4,478,016; Expenditures $4,599,553; Planned deficit $121,537; Ending fund balance $1,104,189.

- FY2025 revised activity fund: Approved (motion by Christie; support Tricia) — Revenues $1,071,462; Expenditures $1,064,062.

- FY2025 revised public purpose trust (scholarships): Approved (motion by Christie; support Kelly) — Revenues $39,500; Expenditures $71,000; Ending fund balance approximately $200.

- FY2026 proposed general fund budget: Approved (motion by Christie; support Kelly) — Proposed expenditures $116,825,133; Proposed revenues $111,563,086; Projected deficit $5,262,047; Proposed ending fund balance $8,747,009 (7.5%).

- FY2026 proposed food service budget: Approved (motion by Kelly; support Andrea) — Revenues $4,683,243; Expenditures $4,731,161; Planned deficit $47,918; Ending fund balance $1,056,270.

- Debt retirement (2526) budget: Approved (motion by Christie; support Kelly) — 7 mills debt levy; taxable value cited at $3,017,914,310; tax revenue ~$21,897,132; fund balance cushion maintained.

- FY2026 proposed activity fund: Approved (motion by Kelly; support Andrea) — Revenues $1,125,025; Expenditures $1,117,265.

- FY2026 proposed public trust fund: Approved (motion by Andrea; support Christie) — Revenues $35,000; Expenditures $140,000; Ending estimate $97,835; larger scholarships to be transitioned to Rockford Education Foundation.

- 2025 tax levy certification (L-4029): Approved by roll call (motion by Christie; support Tricia Anderson) — form to be sent to taxing entities to levy the district’s authorized mills.

- Ratifying resolution for 2019 bond third series: Approved (motion by board) — final step after bond pricing May 14.

- Rockford Freshman Center cafeteria furniture purchase: Approved (motion by board) — $48,461.63 for two vendors to furnish interim cafeteria/student-union seating.

- Administrator contract renewals (rolling renewals for qualifying administrators): Approved.

- Certified staff new hires (seven replacement positions): Approved.

- Administrator resignation acceptance (Tom Hosford): Approved with regret.

- MHSAA participation resolution: Approved.

- KISD millage resolution (supporting placement of a renewal millage on November ballot): Approved by roll call.

The board took a number of the budget votes after hearing the finance report and public comment on the budget. Board members repeatedly emphasized uncertainty because the state legislature had not finalized the school-aid budget and said revised budgets would return for board approval if state revenue or enrollment assumptions change.

The board’s approvals clear the way for the district to finalize its FY2025 audited balances and to proceed with planning and negotiations for FY2026 while retaining the ability to revise budgets when state actions are final.