District 211 releases 2025 tax-levy recommendation as five-year forecast shows reserves slipping

District 211 Superintendent Judith Campbell and Chief Financial Officer Lauren Hummel presented a 2025 tax-levy recommendation and five-year financial forecast at the board—s Oct. 9 meeting, saying the levy is intended to preserve district operations while the administration pursues targeted expenditure reductions.

Hummel told the board the district is recommending a levy of approximately $207,000,000, which reflects the Property Tax Extension Limitation Law (PTELL) CPI limit of 2.9 percent, an estimated 0.7 percent in new property growth, and a $1.8 million look-back (recapture) amount from unclaimed prior levy capacity. She said PTELL caps annual levy increases at the lesser of the prior-year consumer price index (CPI) or 5 percent and allows districts to capture new construction growth in the year it appears on the tax roll.

"The levy recommendation is made with consideration of both the upcoming fiscal year as well as considering the long term financial impact," Hummel said. She added that approximately 80 percent of the district—s budget is staffing-related.

The administration presented three scenarios: (1) adopt the full allowable CPI plus new property and the $1.8 million look-back (recommended); (2) levy only CPI plus new property (no recapture); and (3) levy only new property (no CPI, no recapture). All three scenarios show a decline in operating fund balance; the recommended scenario delays more severe decline but still projects the education fund balance dipping below the district—s 33 percent policy target by FY 2027 under the stated assumptions.

Hummel and Controller Kathy Zalowski described assumptions used in the forecast, including CPI at 2.9 percent for 2025 and 2026 and 2.5 percent thereafter, continued enrollment and staffing assumptions, and anticipated recapture levies. The administration warned that refunds from property-tax appeals and related adjustments have averaged about $7.1 million annually over the past eight years and spiked to roughly $14.8 million last year. They said those refunds reduce actual collections from levied amounts.

Board members responded with extensive questions about the absence of projected expenditure reductions in the five-year model and pressed the administration for specific, near-term plans to slow expenditure growth. Board member Kevin Dombrowski said, "At some point, you have to say you can't spend money we don't have," adding he wanted to see fiscal adjustments included in projections rather than promised later. Other members asked for clearer breakdowns of line-item drivers — special education tuition, transportation, benefits and utilities were cited as examples of costs rising faster than CPI.

"We will be looking at those," Dr. Campbell said, describing ongoing work on procurement, insurance renewals and attrition-driven staffing changes. Hummel said many reduction strategies are underway but that some savings (for example from RFPs) are still being quantified and therefore are not yet reflected in the projection.

Board members also discussed the district—s adopted fund-balance policy, which targets roughly 33 percent of operating expenditures. Several members voiced concern about relying on reserves rather than immediate expenditure reductions. Board Vice President Paul Van Dyke described the reserve level as a precaution for revenue timing and said the district had to draw on reserves in prior years when collections were late.

The administration said the levy decision will follow the statutory timeline: the board will set a tentative levy in November, hold a Truth in Taxation-style hearing on Dec. 11 for public comment, and adopt and file the levy with the county clerk before the statutory deadline in late December. Hummel noted the 2025 levy is the last year to use the particular look-back (recapture) authority for funds not levied in 2022.

What happens next: the board asked the administration for more granular options for expenditure reductions, clearer sensitivity analyses for CPI and recapture assumptions, and outreach explaining levy mechanics to the public. The levy presentation remained informational on Oct. 9; the board will consider a tentative levy amount in November and hold a public hearing in December.