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Urbana SD 116 adopts tentative FY25 budget despite projected $2M shortfall
Summary
The Urbana SD 116 Board adopted its tentative budget before the June 30 statutory deadline, saying final revenue figures and September hearings will guide mid-year adjustments; board members raised concerns about a roughly $2 million projected structural deficit and the end of some grant funding.
The Urbana SD 116 Board of Education adopted its tentative FY25 budget at a special 6:00 meeting, completing a statutory step required before June 30. Board members and staff said the tentative document will be refined ahead of a public hearing in September when final revenue and spending figures are clearer.
The board's finance staff explained that the district is projecting about a $2,000,000 deficit going into the 2024-25 academic year, a far smaller shortfall than last year's $11,000,000 figure that was affected by assessor timing. Staff described the district's conservative revenue assumptions and said some unknowns remain, including the final Evidence-Based Funding (EBF) allocation and the end of federal ESSER grants.
Board members asked whether the district should plan for structural reductions next year if revenue does not materialize and whether grant or other one-time funds could be replaced. "That $2,000,000 figure is really making me nervous," one board member said, adding that staffing is the largest ongoing cost and that deep cuts would be painful.
Finance staff reported several mitigating factors: about $1.5 million already spent on asbestos abatement and demolition for the Wiley project came from current pay-as-you-go FY24 funds (not future funds), and the district expects to use dedicated facility sales tax receipts to service bonds for capital projects so those would not immediately increase property taxes. Staff cautioned that final year-end closings in June and the September hearing will produce the clearest picture.
The vote: The board took a roll-call vote and approved the tentative district budget unanimously. Board members also approved a tentative Urbana adult education budget as a separate action.
Next steps: Staff will finalize year-end closings and prepare materials for the September public hearing where the board will consider the final FY25 budget and any adjustments.
