Aurora East committee flags $9.3M projected deficit in amended FY26 budget after state funding change

The Aurora East USD 131 Finance and Personnel Committee reported May 4 budget changes that district staff presented to the board on May 18, saying the amended fiscal year 2026 budget reflects updated beginning fund balances from the finalized FY25 audit and adjustments to state and federal grant amounts.

Committee chair Miss Reyes told the board the amended budget shows approximately $259,000,000 in revenue and $269,000,000 in expenditures, producing an estimated $9,300,000 deficit. Reyes said the district’s shift from tier 1 to tier 2 under the state funding formula is the primary reason for the projected shortfall and is outside the district’s control.

The committee also discussed increased costs in salaries and benefits (noted as nearly two-thirds of expenses) and rising special education tuition and outside placement costs. The committee reviewed a timeline for adopting the amended budget that includes board action to approve a tentative amended budget, a 30-day public display, a public hearing at the board’s June 15 meeting, and final approval that same evening.

Interdistrict placement costs: Reyes reported the district’s partnership with West Aurora for Hope Wall student placements had been intended as a 50–50 cost-sharing model; after reviewing 10 years of data, the district says it historically carried closer to two-thirds of the cost and is seeking reimbursement credits that might total “several million dollars,” according to the committee report.

Policy updates and next steps: The committee also reviewed IASB-recommended policy wording updates, including policy 4:165 regarding abuse-education notices; although state law no longer requires a five-day parent notice and opt-out, the district recommended continuing that practice to maintain transparency with families. The district will post the tentative amended budget for public review and hold the June 15 public hearing before final board action.