Aurora East USD 131 presents FY26 tentative budget showing $2.8 million shortfall; board to adopt tentative budget Aug. 4

Dr. Mike Engel, Aurora East USD 131 chief financial officer, presented the district's FY26 tentative budget to the Board of Education on July 28, reporting an anticipated $2,800,000 shortfall — about 1.1% of the working budget — and outlining next steps for adoption.

Engel said the district expects certain federal and state funding figures to arrive in August, including evidence-based funding results that typically are released around Aug. 15. He told the board that federal funding is down approximately $2,000,000 compared with recent years and that corporate personal property replacement tax receipts are projected to fall about 20%. Engel summarized other assumptions: average salary increases of about 3.75%, benefit increases near 8%, transportation costs rising roughly 4%, and continued strong interest income near 4%.

The presentation showed the education (Ed) fund as the largest revenue source at just over $196,000,000, making up about 74% of total revenue. Engel said total revenue across funds was roughly $265,000,000 and total expenditures approximately $268,000,000, with salaries comprising about 50.5% of the district's expenditure budget.

Timeline and next steps The board was told a resolution to adopt the FY26 tentative budget will be presented at the Aug. 4 board meeting; the tentative budget will then be placed on public display for 30 days. A public hearing and final action to adopt the budget are scheduled for the Sept. 15 board meeting.

Board questions and responses A board member asked whether the projected shortfall would disappear once evidence-based funding amounts are released; Engel said the district's tier status — currently near the tier 1/tier 2 threshold — and proration across other districts will affect the final state allocation and that the district will revise estimates when the state publishes numbers. Engel said the district typically indexes its tax levy to the Consumer Price Index; he indicated the district would likely seek an extension slightly under the December CPI (about 3%) and noted the statutory limit to levy increases would be 5% before new growth adjustments.

When asked how the district would close the gap, Engel said staff expect "belt tightening" across departments, targeting discretionary spending and capital timing and that central staff and departments will seek savings within the 12-month fiscal year. A board member emphasized that the district does not adopt a deficit budget and asked for department-level review and reduction options before the August meeting.

Consent and committee items During the meeting the board approved several agenda items related to committee recommendations and purchases:

- Demographic study agreement: The board approved an agreement with John D. Casarda for a demographic study at a cost of $19,400. The roll call recorded a majority in favor with one member voting no.

- Computer purchase for lab: The board approved the purchase of 30 computers from CDW for $29,700 to update a high-school business/IT lab; the motion passed on roll call.

- General release of claims: After an executive session, the board approved a general release of claims by Lisa Keparelli Ruff as reviewed in closed session; the motion passed on roll call.

The full consent agenda motion was approved, with one board member recording a "no" vote on the personnel report (administrative hires) and on the list of bills; the dissenting member said they supported hiring but opposed the administrative hires listed and wanted to discuss the bills at a later date.

Other items and context Superintendent Dr. Halverson announced a board workshop planned for Sept. 10 at 6 p.m. and a back-to-school fair on Aug. 9 at East Aurora High School. Finance committee members reported the committee reviewed donations, monthly financial reports for May 2025, proposed IASB Press policy revisions (including policies relating to students who are parents and home/hospital instruction), and recommended delaying adoption of proposed AI policy language until a stakeholder group develops district-specific language, with an administrative completion target of January 2026.

No specific reductions, layoffs, or program eliminations were approved during the July 28 meeting; Engel said the district has about 12 months to reduce the budget gap as more revenue information becomes available.