Waukegan CUSD 60 projects $39.7 million gap in FY27 budget; board presses for concrete deficit plan

The Waukegan CUSD 60 board heard on May 13 that the district is projecting a $326.44 million FY27 budget across nine funds and faces a material shortfall against projected revenues.

Presenter from the district business office told the board the education fund accounts for roughly $268 million of the total and that projected revenues across funds are about $287 million, leaving a projected gap of approximately $39.7 million if every requested expenditure is approved. "We know that the beginning fund balance for ’27 is fluid because we're in the midst of FY26," the presenter said, adding the budget uses conservative assumptions and that state evidence‑based funding figures will not be final until late September.

Board members pressed for specifics on the projections and potential savings. Miss Hannah asked for the precise grants total in Fund 11; the presenter said grant revenue typically runs between $28 million and $34 million and committed to providing the exact FY27 figure the next day. Board member Mr. Riddle said the numbers alarmed him: "If my revenue is less than my expenditures every year, I wouldn't stay in business very long," he said, urging administration to identify immediate savings.

The presentation highlighted several drivers. Staff FTEs were listed at 2,638 and projected district enrollment at 12,665, down about 2.29 percent from current estimates. Compensation is the largest cost: total compensation was projected at $178.7 million, with stipends, substitute pay and overtime highlighted. The presenter also warned of the "ESSER cliff," saying one‑time federal pandemic funds previously used for nonrecurring purchases and contractual obligations are expiring, which raises recurring cost pressure where prior increases were absorbed.

On fund balances, the business office projected a possible $19.6 million deficit within the education fund under the "all requests spent" scenario, leaving an $8.9 million ending balance in that fund and an overall district ending balance of about $37.5 million. The presenter said the district currently had roughly $73–$75 million in cash across accounts and noted $10 million invested plus a roughly $13–$14 million balance tied to recent bond proceeds, but cautioned that those resources are finite.

Administration described a multi‑layered approach to close the gap without cutting direct student services. The presenter and the superintendent said they have been identifying cost reductions — including food-service and overtime controls, contract reviews and scheduling changes — and will not rely on a single large action that would cause staff panic. "We will show you exactly what our plan is," the presenter said, offering to meet with the board president and members within about two weeks to present a formalized plan that may include personnel discussion in closed session.

The board also debated past decisions that increased recurring costs. Several members noted prior board‑approved pay increases for teachers and support staff improved recruitment and reduced some substitute costs but also raised the district’s recurring salary base by an estimated $30 million. The superintendent defended those decisions as intentional and important for retention, while acknowledging the need to reconcile those choices with current fiscal constraints.

Procedural items at the start and close of the workshop were brief: the board approved minutes from the Aug. 5, 2025 budget workshop by roll-call vote (all present voting yes), and President Rodriguez called for adjournment at 7:44 p.m.; the motion carried with one member recorded as opposed.

The next steps identified were concrete: administration will provide the requested Fund 11 grant totals, circulate the detailed files that underpin the FY27 projections, and schedule a follow‑up session within about two weeks to present the district's proposed deficit‑reduction plan.