Forest Park SD 91 warns of multi‑million dollar shortfall as county delays tax payments
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Summary
Interim Superintendent Dr. Hubbard told the board the district faces delayed county tax payments that create an estimated $7 million shortfall and could draw down reserves; the board also heard projected double‑digit rises in employee health premiums.
Interim Superintendent Dr. Hubbard told the Forest Park School District 91 board on April 9 that county delays in tax disbursements have created significant uncertainty in the district’s cash flow and could reduce fund balances as the fiscal year closes.
"Fund balance is 29,800,000.0," Dr. Hubbard said while reviewing the district's end‑of‑year projection. He said the district expects to spend about $7,500,000 in remaining 2025‑26 expenses and is missing an estimated "about $7,000,000 from the county," adding that county officials have not provided a timeline for payment.
Why it matters: delayed property‑tax distributions can force districts to draw on reserves or time sensitive expenditures differently. Dr. Hubbard told the board that, at current spending levels, "our reserves cover us right now. We should cover us about 10, 11 months," but stressed that the lack of a payment schedule raises short‑term risk.
Board members pressed for clarity about whether the county backlog had been fixed and whether there are levers the district can use; Dr. Hubbard said the district does not have authority to compel the county on timing and that some taxing bodies have pursued litigation and other remedies.
On benefits: Dr. Hubbard also presented preliminary FY2027 rates, telling the board that under the current contract "our PPO premiums are going up 20.2% and our HMO premiums are going up 17.4%" and that open enrollment is scheduled to begin May 1. He said the board would be asked later to approve the rates as a ceiling pending final negotiations.
What the board did: The presentation prompted questions and discussion but no immediate budget action beyond scheduling votes later in the meeting to authorize budget preparation and to adopt budget/tax‑levy calendars. Dr. Hubbard said staff may need to consider contingency steps if county revenues remain delayed.
The board is scheduled to begin its FY2027 budget process and to consider final insurance rates after contract negotiations are complete.
