Peoria Unified administration outlines FY26 budget development and use of carryforward

District administration presented the Governing Board on March 11 with a detailed update on fiscal‑year 2026 budget development, including enrollment forecasts, carryforward balances and compensation scenarios.

Ms. Myers told the board that the district’s combined M&O and capital budget carryforward at June 30, 2024, was $64,100,000. She said capital carryforward at June 30, 2024, was $36,800,000 and classroom site fund carryforward was $41,900,000. Administration reported the district has seen an enrollment decline; the projection increased during the current fiscal year to a 1,000‑student decline, which reduced projected new funding for FY26 and will require expenditure reductions or use of carryforward funds to maintain current services.

Administrators outlined possible uses of carryforward to cover one‑time costs and bridge compensation increases during the transition: administration estimated M&O carryforward could cover about $5,300,000 of compensation, fixed and variable expense increases for FY26 and identified $6,700,000 in annual insurance contribution that could be offset from reserve net position on a one‑time basis. The classroom site fund and other sources were discussed as mechanisms for teacher and support‑staff pay increases; the district noted the classroom site fund per‑student allocation is set by the state and that declining enrollment tempers per‑student increases.

The budget team will continue to meet; administration said it will bring compensation recommendations to the board March 13 and ask for action March 27, 2025. Board members asked for details on reserve targets, the Government Finance Officers Association recommendation of two months of general fund expenditures, and contingencies if federal or state revenues change. No final budget decisions were made at the study session.