CFC reviews preliminary FY26 budget: $108M revenue plan, heavy capital spending and special‑education cost growth

Oak Park–River Forest SD 200’s Community Finance Committee on June 10 received a preliminary review of the district’s fiscal year 2026 budget, in which staff presented a $108 million revenue plan, heavy capital spending for ongoing construction and a projected increase in special‑education costs.

The finance presentation showed $108,000,000 in budgeted revenue for FY26 and roughly $62,000,000 (about 40% of the total budget) earmarked for capital expenditures tied to ongoing projects, including Project 2 and the conclusion of geothermal work. Staff said a portion of capital spending will be paid from remaining debt certificate proceeds and interest; the budget assumes about $28,000,000 of construction expense covered by those proceeds and earned interest, and about $41,000,000 coming from operating‑fund transfers.

Ryan (district finance staff) told the committee the education (operating) fund will transfer just over $22,000,000 to capital in FY26. After projected transfers, the operating fund balance is budgeted to end FY26 at roughly $30,000,000 — a fund‑balance‑to‑expenditures ratio of about 32%, which the presenter said sits within the district’s 25%–50% policy target.

Revenue details highlighted several drivers and risks: property taxes are the largest source and the levy adopted last December provided a 2.5% increase plus new property; corporate personal property replacement tax (CPPRT) receipts have fallen sharply since the pandemic and the budget assumes a further decline (the presentation built in a 17% decrease for CPPRT in FY26); interest earnings are expected to produce about $3.8 million next year; and a $3.5 million state capital grant associated with the Imagine Foundation’s $12.5 million commitment to Project 2 is budgeted for part of FY26 with additional reimbursements expected the following year.

On expenditures, salaries were budgeted for a 4% increase overall; benefits used an 8% assumption for health insurance (staff noted calendar‑year timing makes the benefit line more volatile). Equipment spending is reduced by more than $500,000 from the prior year, and electricity costs were called out as a material increase — roughly $225,000 — driven by transmission and procurement factors outside district control.

Special education was a key area of concern: staff estimated students placed in private special‑education programs could rise from 46 to 55 at an average cost of about $80,000 per student and residential placements could increase by two students at about $200,000 each. Staff estimated the combined special‑education impact at about $1,600,000 in FY26. Presenters said some outplacement counts are still being evaluated over the summer and that federal and state reimbursement rates for portions of those costs are variable; historically, federal reimbursement has covered a substantial share of room‑and‑board in outplaced placements but state categorical reimbursements can lag or be held flat.

Project‑specific numbers included an estimated $10,000,000 of remaining Project 2 expenses after FY26; staff said that gap would be covered by a mix of the Imagine Foundation donations, state capital grant reimbursements and a further transfer planned in FY27.

The presenter also noted timing risks: potential Cook County delays in property tax billing could reduce interest income and affect cash flow; staff built a two‑month delay into cash‑flow assumptions. Committee members asked for continued monthly or near‑term updates on the construction budget and requested a brief construction status at the August meeting. One staff member told the committee the construction dashboard available on the district website currently shows Project 2 as on budget and on schedule.

Ending: Staff will refine assumptions and update the five‑year financial projection during the summer; the board will review a more complete budget in August, hold a public hearing in September and adopt a final budget later in the fall.