Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Downers Grove GSD 58 previews FY2027 budget; fund balance projects below board target
Summary
District officials presented a preliminary FY2027 budget, proposed a $4.8 million FY2026 interfund transfer from referendum interest, and said the district’s projected operating fund balance is about 31% — under the board’s 35% policy — prompting a planned financial sustainability plan and follow‑up steps.
Doctor Harris, the district’s chief business official, told the board on May 11 that the administration is proposing an FY2026 amendment to add a roughly $4.8 million interfund transfer of excess interest from the 2022 bond issuance into the educational fund to help May cash flow. The transfer is described as arbitrage proceeds that ultimately will be payable to the IRS; the district said the latest allowable repayment date to the IRS would be Feb. 28, 2028.
Harris framed the FY2027 presentation as preliminary planning rather than a final budget, noting key revenue assumptions: 99.6% collection of local property taxes, flat investment revenue, and a small reduction to the corporate personal property replacement tax (CPPRT) in the $40,000–$50,000 range. He cautioned that transportation reimbursements will probably decline next year — the district expects to receive roughly $1.6–$1.7 million in transportation reimbursement for FY2027 based on lower prior‑year expenditures.
On the expenditure side, Harris said two labor contracts remain unresolved; the preliminary numbers incorporate previously planned spending cuts and other conservative assumptions. He also highlighted a $750,000 capital transfer required by board policy for FY2027 and that custodial staffing will increase by two positions (one restored at O’Neil and one added for Herrick’s additional square footage).
Harris warned the board that projected operating fund balances for June 30, 2027, are about 31% of operating expenditures — short of the board’s recently adopted 35% fund balance target. He said the 31% figure includes roughly $5 million in arbitrage cash currently in the education fund that eventually must be paid to the IRS; if the district pays that liability early, fund balances would fall further. Harris identified possible mitigations: use of excess referendum interest that may be available after final construction invoices, delaying payment of arbitrage until later permissible dates, or, if needed, presenting a financial sustainability plan to the board by January as the board’s policy requires.
Board members and staff said they will continue to refine revenue estimates, await the state budget outcome that will clarify transportation proration, and return with more complete FY2027 figures at upcoming meetings. Harris said the district will put the budget on public display and hold the required hearing before the board considers adoption, with a scheduled hearing and adoption vote planned for the June and September processes respectively as part of the district’s multi‑stage budget timetable.
Ending: The board was asked to review the preliminary assumptions and expect a more detailed FY2027 proposal, updated state revenue and transportation numbers, and a potential financial sustainability plan if the fund balance ratio remains below the board target.
