Batavia USD 101 board hears bleak budget forecast, authorizes HLS survey amendment to preserve bond option

The Batavia USD 101 Board of Education reviewed a preliminary FY27 budget on April 21 in which Treasurer Tony Inglese said revenues are expected to rise modestly—about $2.2 million—while capital spending and benefits increases are driving a greater draw on reserves.

Inglese said the district's FY27 net shortfall is about $5 million and that the district drew down roughly $14 million in the current fiscal year on one‑time capital work. "We're spending our reserves to put money in one‑time expenses," Inglese said, noting the district has structural operating surplus but is spending reserves to fund necessary warm, safe, dry capital projects. He warned the district has about two to three years of capacity to do that work without changing course and forecasted health‑insurance cost increases in the 15–25% range.

Board discussion focused on long‑range risks and options. Inglese said falling below policy minimum fund balances would force the district to borrow for cash flow, increasing interest costs, and that falling one funding tier would not materially change state aid given the district's relative wealth. He described the district's capital backlog and said delaying projects usually increases costs because deferred maintenance often leads to replacement rather than repair.

On a separate action, the board voted to authorize amending the district's 2024 Health Life Safety (HLS) survey to include estimated project budgets, thereby establishing eligibility for HLS bond financing subject to future board approval. Mark (facilities lead) told the board the amendment "preserves the option to apply for the HLS bonds in the future" but does not authorize bond issuance tonight. The board report included a planning example of roughly $11,000,000 in HLS‑eligible work and an illustrative tax impact of about $155 on a median house valued at $440,000; Mark said final scope, cost and tax impacts would return to the board if state approval is granted.

The board also approved several routine and programmatic items by roll call: consent agenda items including minutes, payroll and personnel reports (with a newly added hire), a services agreement update with the Boys & Girls Club of North Central Illinois to expand before‑/after‑school care at Louise White School, placement of a high‑school curriculum (Savas) on public display for one month, a percussion equipment purchase for Batavia High School, authorization of a small plat dedication to the city, and adoption of the 2026‑27 board meeting dates.

The board moved into closed session twice during the meeting to discuss personnel and student matters under the Open Meetings Act (5 ILCS 120/2(c)(1) and 5 ILCS 120/2(c)(10)). The HLS survey amendment preserves financing options if the board later elects to issue bonds, but the district has yet to decide whether to issue debt, seek a referendum or pursue alternative funding.