Geneva CUSD 304 finance committee forwards draft 2026–27 budget after staff warns fund balances will be drawn down

The Geneva CUSD 304 Board of Education finance committee voted June 15 to forward the district's draft 2026–27 budget to the full board after staff warned projected revenues and planned capital spending will require drawing on fund balances.

Todd Le, the committee's presenter, told members the draft shows total revenue of "about $84,989,280" and cautioned the figures are preliminary pending tax distributions and final benefit elections. He said staff modeled a range of scenarios and inserted an estimated transfer to test compliance with the district's fund-balance policy: "I did put an estimated number in. I wanted to really see what the fund balance would look like," Le said.

Why it matters: staff projections indicate the district will continue using fund balance to fund capital work that historically has been covered by one-time draws. Committee members repeatedly cautioned that relying on fund balance is not sustainable in the long term and asked staff to explore options to smooth funding without creating ongoing structural shortfalls.

What staff presented: Le summarized the budget's assumptions and major funds. Staff are estimating about a 5% increase in one revenue driver and roughly a 3.2% increase in local tax receipts; evidence-based funding remains flat for the district (tier four), and investment returns were modeled at about 4.2 percent. On the education fund, Le said the model shows local taxation of a little over $73 million and that, under current assumptions, the district will likely need to use fund balances and transfers to support the capital plan and fleet management.

Le also reviewed other funds, including operations and maintenance, debt service, transportation and retirement. On transportation he noted state categorical funding pressures and uncertainty in some summer reimbursements that affect the timing of final numbers. On capital he pointed to a recent four-year pattern: roughly $32 million of projects funded from fund balance, which he said is not sustainable at the same pace.

On transfers and working cash, Le said one-time transfers are possible but require public notice and a board resolution: "We could move some of those funds out, and that would be by public notice and resolution," he said. In discussion, committee members asked whether working cash or other one-time moves could be used to smooth funding for life, health and safety projects; staff said those are options but would not change the district's overall fiscal position long term.

Votes at a glance: the committee approved a motion to allow Dan Choy to participate remotely under the Open Meetings Act; it approved the May 26 minutes; and it voted to forward the 2026–27 draft budget to the full board for consideration. The committee also adjourned following the action.

Next steps: staff will publish a tentative budget in July for a 30-day public display period, accept public comment and return to the board in August for final adoption. Le emphasized the numbers will be updated when tax-distribution figures and final benefit-election outcomes are available.

The committee did not adopt final figures at the June 15 meeting; committee members directed staff to continue refining projections and to present the tentative budget and supporting analyses to the full board.