Naperville 203 outlines tentative FY2027 budget with nearly $3.9M operating shortfall; board schedules June 15 hearings

Naperville CUSD 203 officials presented the district's tentative FY2026-27 budget on May 4 and the board set June 15 as the public-hearing date for the amended FY2026 budget, required interfund-transfer hearings and the FY2027 tentative budget.

Mike Francis, the district's chief school business official, told trustees the district is shifting from pandemic-era federal ESSER funding and reduced state reimbursements to reliance on local resources. "The defining reality of this budget is an almost $4,000,000 operating deficit," Francis said, summarizing revenue and expense projections and describing steps to achieve long-term sustainability.

Francis detailed measures under consideration: a 15% reduction in school site budgets, a 25% reduction in department discretionary spending, and staff reductions totaling 59 positions (seven administrative, 43 certified educators and nine educational support personnel). He said personnel costs remain high because of binding contractual obligations: "personnel costs will still rise to $238,600,000 for salaries and $59,500,000 for benefits," he said.

The presentation included fund-level context: the district projects $366.1 million in operating revenues against $370.1 million in operating expenditures, producing the roughly $3.9 million operating deficit; across all funds, projected revenue of $367.7 million and expenses of $407.5 million reflect a near $40 million planned decrease in fund balance tied to board-approved capital projects.

Trustees pressed for clarity on the distinction between operating funds (day-to-day education, transportation and maintenance) and all funds (which include capital projects and debt service). Francis explained state fund definitions and said capital projects such as junior-high renovations, the Naperville North addition and a new transportation facility are multi-year and partly funded from fund balance according to board policy 04/20.

"Those nonrecurring expenses are exactly what we've been doing in the last couple years... and that is explicitly why there's a larger deficit," Francis said, referring to board policy that allows spending excess fund balance on one-time capital projects.

Several trustees expressed concern about the size and timing of the deficits and about using educational funds for capital work. Trustee Melissa Kelly Black said she was "extremely concerned" about proposed transfers and the amended budget's deficit, and she said community feedback opposes reductions to direct student services. Other trustees noted the administration had reduced a previous $12.1 million forecasted deficit to the current nearly $3.9 million number and urged continued discipline to return to balance.

On actions, the board voted to: set June 15 for a public hearing on the FY2026 amended budget (motion moved by Trustee Joe Kosminski and seconded by another trustee; roll call passed unanimously), set June 15 for the interfund-transfer public hearing (motion passed with one Nay by Trustee Kelly Black), and set June 15 for the FY2027 tentative-budget public hearing (motion passed with one Nay by Trustee Kelly Black). The clerk called roll for each motion and recorded individual votes.

Francis encouraged trustees and the public to review the tentative budget book starting May 8 and to submit follow-up questions. The board scheduled two additional budget-review meetings in June and is expected to hold the formal public hearing and final budget adoption in June per the district's timeline.