Indian Prairie staff outline five-year forecast, propose designating $42 million in reserves for future capital and recommend staffing changes

District staff on Feb. 24 presented a five‑year operating forecast and a set of budget management recommendations aimed at keeping recurring costs in line with expected revenue growth.

Matt Chipley (staff member) told the board the district’s operating funds have benefited from one‑time revenues in the past two years—principally higher interest income and federal ESSER grants—but those sources have expired or are tapering. Chipley emphasized “the importance of predictability in financing public education” when describing how the district must align recurring expenditures with recurring revenues.

The five‑year forecast (FY2026–FY2030) projects a small surplus for FY2026 (about $57,000) after recommended reductions, followed by modest deficits that grow to $1.3–$3.0 million annually in later years under current assumptions. Primary pressures named were rising transportation and energy costs and increased out‑placement tuition for special education students. The presentation noted transportation route costs have risen roughly 80% since 2019 while Consumer Price Index (CPI) has increased about 25% over the same period; administration said routing efficiencies have produced operating savings estimated at about $6 million since 2019.

To address projected deficits, administration proposed a set of actions for the FY2026 budget cycle: a net reduction of 19 FTEs (28 reductions offset by 9 new positions focused on English‑learner services and expected enrollment growth), frozen discretionary budgets (second consecutive year), and a proposed 5% increase in student registration/fees tied to specific costs (for example, student devices and consumables).

Administration also recommended designating $42,000,000 of the operating fund balance for future capital needs/contingency and an additional $12,200,000 to support one‑time operating needs over the next three to five years. Staff characterized the $42 million as a liquidity measure — roughly 260 days of state funding — intended to provide bridge funds if state distributions are delayed and to help cover capital maintenance not included in the referendum master plan.

Chipley and the administration emphasized these were recommendations for board consideration. Board members asked for clearer, more frequent reporting when budgets trend above plan, and discussed tradeoffs among tax‑rate stability, bond structuring and the timing of future issuances. Administration said the board will see additional bond‑parameter resolutions, project approvals and a formal proposal to restrict any fund‑balance amounts during the FY2026 budget adoption process.

Ending: The board did not take a binding vote on the fund‑balance designation at the meeting; administration will return with formal recommendations and documentation for the FY2026 budget process.