District 58 outlines five-year cash plan, says $1.5 million in recurring reductions or new revenue will be needed
Summary
District 58’s business office presented a conservative five-year cash projection that identifies a recurring $1.5 million gap to avoid May low-cash shortages; the board approved a resolution to transfer referendum interest to operations and directed further analysis ahead of a January financial workshop.
At its Dec. 8 meeting, the Downers Grove Grade School District 58 Board of Education heard a detailed cash-based five-year projection from Chief Business Officer Dr. Harris that warns of a recurring structural shortfall unless the district either cuts $1.5 million annually or secures equivalent recurring revenue.
Dr. Harris told the board that the district’s balanced operating budget still faces a May “low cash point” in which the district could run out of operating money, saying, “we are expecting to be out of money around, let's say, May 15.” He presented a conservative scenario and a revised scenario that stabilizes the fund balance if the board adopts a recurring $1.5 million adjustment and invests $750,000 annually in infrastructure, indexed to CPI.
The business office outlined key assumptions behind the projections: a December 2025 CPI of about 2.8 percent, a $90,000 budgetary assumption for the cost of a certified staff member (salary plus benefits), and limited expectation of new state or federal revenue. Dr. Harris noted projected savings from retirements — “about $900,000” in next-year savings — but said those savings alone would not close the structural gap.
To address timing pressures the administration recommended using allowable referendum interest and other one-time tools while pursuing a recurring solution. The board approved a resolution authorizing the transfer of referendum interest income from the Capital Projects Fund to the Educational Fund; the amount discussed in the meeting was identified as about $4,857,000. Dr. Harris characterized that transfer as a short-term step to cover the May low-cash point while the district develops longer-term decisions.
Board members asked for clearer sensitivity analyses showing the budgetary impact of shifts in the plan’s top assumptions. Several members pushed the administration to present multiple options — not just a single recommendation — so the board can weigh service-level impacts and alternatives before any recurring cuts are finalized.
The board scheduled further discussion at a January financial workshop and asked staff to bring sensitivity tables for the top drivers (CPI, transportation/proration, and enrollment/FTE assumptions). The board also authorized the business office to explore other tools mentioned by Dr. Harris — working cash bonds and adjustments to payroll timing — as part of a portfolio of responses.
The board voted later in the meeting to adopt the 2025 tax levy as presented and approved the interfund resolution to transfer interest income to operations. Those actions do not in themselves resolve the recurring gap; administration said they provide breathing room while the district finalizes a recurring plan.
Next steps: administration will return to the board in January with sensitivity analyses and a set of options to achieve the $1.5 million recurring objective or identify recurring revenue alternatives.
