Waukegan CUSD 60 presents 2025–26 budget, projects $30 million gap and urges modest levy increase

Waukegan CUSD 60 Superintendent Teresa Placencia and the district finance team presented the adopted 2025–26 budget and a multi‑year financial overview during a public finance update livestream, saying the district expects revenue of about $270 million and budgeted expenditures of about $299 million for operating funds in fiscal 2026.

The presentation, led by Associate Superintendent of Business and Financial Services Gwendolyn Polk with contributions from finance team members Brian Luosa and Andy Latimore, summarized recent fiscal recognitions, long‑term budget planning, the district’s credit rating history and debt management, and steps the district is taking to avoid cuts that would affect student support.

Polk framed the district’s budget approach as intentionally transparent and strategic. "We want this to be an open and democratic process where we're transparent and we're collaborative with all of the stakeholders within our district community," she said. The district emphasized multi‑year planning and 0‑based budgeting to align resources to strategic priorities rather than simply rolling forward prior year allocations.

Why it matters: District leaders said the adopted budget includes a projected shortfall of roughly $30 million for the operating funds (education fund, operations and maintenance, transportation and working cash) but that the district’s starting fund balance can absorb that projected gap without requiring a formal deficit reduction plan. Polk told viewers, "We had a starting fund balance that was able to absorb that negative number," and said the budget is a "living document" that the district will adjust as actual revenues and grants are finalized.

Key figures and trends presented - Evidence‑based (general state) funding: Luosa said state allocations have risen from about $82 million in 2014 to $168,000,004.75 in fiscal 2026. - Operating funds (adopted 2026 budget): revenue approximately $270,000,000; expenditures approximately $299,000,000; projected operating shortfall roughly $30,000,000 (projection, adopted budget figures). - Combined fund balances for the four operating funds were presented at $110,887,000. - Federal ESSER funding: Polk said the district received about $84,000,000 across the pandemic years; leaders noted an "ESSER cliff" as those one‑time funds taper, contributing to revenue declines in recent years. - Property tax extension (excluding bonds and recapture): reported at about $52,418,688; district leaders said they voluntarily did not levy about $35,000,000 in prior years to keep property taxes level. - Levy request for tax year 2025: the district has sought an increase just under 5 percent (4.99%). Polk said the district is below the 5 percent threshold that would legally trigger a truth‑in‑taxation hearing, but the district posted notices and asked for community support. - Compensation: district staff salaries and benefits were highlighted as the largest expenditure category (salaries estimated to be roughly 70% of budgeted expenditures). Several negotiated labor agreements were summarized, with recent above‑market increases noted in earlier years to address recruitment and retention.

Awards, credit rating and debt Polk noted multiple external recognitions: meritorious budget awards from the Association of School Business Officials International (MBA awards) for years 2010–2024 and certificates from the Government Finance Officers Association for financial reporting (2018–2024). The district reported a Standard & Poor’s (S&P) A+ stable rating in fiscal 2025 after earlier ratings of A and A‑ in prior years.

On debt, presenters described use of non‑referendum bonds for capital projects and refinancing steps taken in the past decade to smooth large balloon payments. The presentation referenced a 2025 non‑referendum bond issuance and said the district maintains debt capacity under the statutory limit; the transcript provided inconsistent numbers for the 2025 bond amount, so the district presentation noted the issuance without specifying a single confirmed dollar figure in the livestream.

Fiscal risks and planned actions District leaders identified risks including potential reductions in evidence‑based state funding, declines in grant dollars, spikes in compensation costs, the expiration of one‑time federal pandemic funds (ESSER), and possible future federal organizational changes they are monitoring. Among action steps Polk and the finance team described: ongoing progress monitoring of investments for return on student outcomes, quarterly review of staffing and contracts, continuing strategic (0‑based) budgeting, and weekly financial briefings with the superintendent. Polk said the superintendent’s priority is to avoid cuts that directly affect student support.

Public engagement and next steps Polk and presenters encouraged viewers to submit questions via the livestream chat. Leaders said the district will continue the finance update series to keep the community informed and to provide updates as final grant allocations and property valuation details become available. The board adopted the 2025–26 budget on September 9 (adoption noted during the presentation); no additional formal board actions were taken during the livestream.

Ending: The district framed the update as part of an ongoing effort to balance long‑term fiscal health with protection of student programs, while asking taxpayers to consider a modest levy increase to help close projected gaps.