Kane County adopts FY2026 budget after heated debate over reserves, RTA and motor-fuel tax swap

The Kane County Board on Nov. 10 adopted its fiscal 2026 budget after extended debate about revenue swaps and reserve levels, approving the annual appropriations by roll-call vote.

Finance chair Paul Leonard (finance chair) told the board that the final package increased total appropriations by $3,118,892 over the initial request and put the FY2026 budget at $130,073,675. Leonard said the board had negotiated with elected officials and department heads and that most offices agreed to cuts; six elected offices had pressed for higher allocations and the committee settled those negotiations by allocating additional funds and using reserves to cover shortfalls.

Board members spent significant time debating a reallocation of Regional Transportation Authority (RTA) sales-tax revenues into the general fund and a proposed 3¢ per gallon motor-fuel tax that would begin July 1, 2026. Officials said the motor-fuel tax would generate roughly $6.4 million annually on a full‑year basis; in 2026 it would cover only partial-year receipts. Critics said transferring RTA revenues would reduce local transportation matching funds and could imperil federal or state grant matches.

Miss Allen proposed an amendment to restore $4.5 million from county reserves to transportation to compensate for the RTA reallocation; the motion failed after debate. Leonard and other finance committee members argued the budget was a compromise that balanced competing priorities while acknowledging that reserves would be drawn down and that the county would need to monitor next-year impacts. "We don't have more revenue and our expenses are going up," Leonard said, describing the budget as a difficult compromise after sustained negotiations.

After a series of roll-call votes on levies, special-service-area budgets and emergency appropriations, the board approved the FY2026 budget package (ordinance adopted by roll call; recorded yes/no counts were announced on the floor). Chair acknowledged the finance committee’s work and urged members to monitor cash reserves and upcoming shortfalls.

Next steps: the board directed staff to continue monitoring reserve levels and to report on potential alternative revenue sources; members flagged possible future amendments and the need to track the motor-fuel tax revenue once it goes into effect.