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Urbana SD 116 presents FY26 budget assumptions; tentative Ed Fund balance remains strong
Summary
Finance staff told the board the FY26 budget is built on conservative assumptions: property‑tax growth tied to a 2.9% CPI, $7M new construction, an expected $933,000 increase in EBF funding, and one‑time energy incentives. The district reported an Ed Fund starting balance of about $17.8 million and will return the final budget for approval on Sept. 16.
Mary Anne, the district finance lead, presented the tentative FY26 budget and explained assumptions and notable changes from FY25. As of June 30, 2025, she said, FY25 revenues exceeded budget by approximately $500,000 while expenditures exceeded budget by about $1,000,000 (largely because of a PROFINA tax settlement). Despite that, she said, the Education Fund begins FY26 in a strong position with a projected balance of approximately $17,800,000.
Major revenue assumptions include a 2.9% CPI for property taxes, an estimated $7,000,000 in new construction value (projected to generate roughly $1.8 million in additional revenue), an expected $933,000 increase in Evidence‑Based Funding (the district remains in Tier 1), and a one‑time energy incentive of $950,000 tied to recent solar projects. Mary Anne said the district assumes a 99% tax collection rate.
On expenditures, the budget factors in negotiated salary and benefit increases (about $2.88 million total, including medical insurance increases), a projected $60,000 increase for utilities and a 4% transportation rate increase through the contract with First Student. Debt‑service payments, bond issues for the sixth‑grade center and working cash to support capital projects were reviewed; the district issued approximately $23 million in construction bonds in FY25 for the Sixth Grade Center and $3.5 million in working cash bonds for technology and summer capital.
Mary Anne said certain revenue items are one‑time (solar incentives) and will drop off next year, and that TIF 4 vocational funding will expire in December. She said the tentative budget currently shows a modest operating deficit (~$43,000) in the Ed Fund but noted the district historically budgets conservatively and often finishes the year in a stronger position than projected. The board was told the final budget will be presented for approval on Sept. 16.
