Waukegan CUSD 60 presents 2025'1026 budget showing $28.7M gap; board may consider 4.99% levy

Waukegan CUSD 60 finance leaders presented the district's 2025'1026 operating budget at a March 18 budget-transparency session, saying revenues total $269,871,000 against expenditures of $298,582,000 and warning that the difference will draw down district reserves.

Brian Lolsa, director of business and financial services, walked attendees through the numbers, saying the operating-fund picture reflects state aid growth but rising costs. "The big takeaway here is expenditures ... and the difference is $28,711,502," he said while showing slides that break expenditures down by salaries, benefits, purchased services and other object codes.

Miss Polk, who read a financial-outlook message from the superintendent, urged calm but action. "This is not a cause for alarm but an opportunity for deliberate planning," she said, adding the district is monitoring long-term projections and will engage stakeholders on trade-offs.

Why it matters: salaries and benefits make up the bulk of district spending. Presenters said salaries account for roughly 56.9% of all funds and 66.5% of the education fund, and combined salaries and benefits comprise about 76% of the education fund. The presentation listed recent collective-bargaining outcomes and contract end dates and noted large recent raises intended to recruit and retain staff.

Tax options and community impact: presenters described how the district has kept its property-tax extension level stable at the board's request in recent years and said that decision has reduced tax receipts. A slide cited $5,161,000 in foregone property-tax revenue tied to the leveling decision; the presentation also referenced a larger cumulative shortfall described as "around $35 million" for 2018'2024. The district said it will ask the board whether to keep the extension level this year or change it.

Brian Lolsa said the district proposed a tax-levy increase of up to 4.99% and noted the Consumer Price Index for the year was cited at 2.9%. He explained that the county will notify the district at the end of March or early April to set the levy to the extension if the board chooses to keep taxes level.

Presenters used an example to show homeowner impact: an assessed value of about $103,265 (roughly one-third of a $300,000 market value under Illinois practice) would translate to an estimated annual increase of about $170 for a senior homeowner under the modeled levy. The presentation also gave a different figure for non-senior homeowners; that figure appears inconsistently in the transcript, and presenters did not clarify the discrepancy during the session.

Budget priorities and one-time resources: the district identified priorities that drive spending decisions, including personnel, special-education services, academic interventions, mental-health supports, facility maintenance and upgrades, transportation and technology. Presenters said the district recently approved a $30 million capital-improvement bond to invest in facility upgrades. They also said the district received federal pandemic (ESSER) funds in excess of roughly $80 million and reported a state audit with "zero findings" on federal fund usage.

Process and next steps: officials described the district's strategic budget-planning model, job-description and position reviews, and continued monitoring of staffing levels to align resources with priorities. Miss Polk outlined the budget calendar for FY27: department submissions and administrative review; three public budget workshops; a 30-day public inspection (Aug. 7'Sep. 8); and a public hearing with adoption targeted for Sept. 8 (final adoption deadline Sept. 30).

During a Q&A, presenters explained Illinois assessment practice (assessed value is generally one-third of market value) and described the district's return-on-investment review process, which officials said is data-driven and involves school leaders, departments and grant managers.

The presentation closed with thanks to the finance team and translators; district operations was asked to follow up on a facilities concern (elevators at the Washington campus).