District U-46’s proposed $963.2 million budget for 2025-26 fiscal year is about 27% higher than the previous year, district staff told the school board at its Monday night meeting.
The increase is largely due to the extensive capital projects the district has undertaken and the need to hire more teachers, according to U-46 Executive Director of Financial Services Robyn Cornelissen.
While officials will not know how much the district will levy in property taxes until December, they’re projecting a tax increase of about 3%, Deputy Superintendent of Operations Ann Williams said in an email after the meeting.
“Individual assessment values will vary but, on average, increases will align with the inflationary rate used to calculate the tax levy, which will be 2.9%,” Williams said.
In addition to property taxes, revenue collected by the district includes about $306 million in state Evidence-Based Funding in 2026, which is about $4.8 million more than the previous year. However, the increase is far smaller than last year’s $18 million boost and lower than what district leaders had anticipated, officials said.
“The difference stems from a shift in the district’s funding designation,” Williams said in her email. “U-46 moved from Tier 1 to Tier 2 status, reducing the district’s share of new state dollars. Officials noted that Chicago Public Schools’ move into Tier 1 this year also affected the overall distribution of funds statewide.”
Williams stressed that while the additional $4.8 million is welcome, the reduced allocation presents challenges.
“These resources are critical to our ability to close opportunity gaps and provide all students with access to the programs and support they deserve,” she said in the email. “The lower-than-expected increase means U-46 will need to continue exercising fiscal discipline and carefully prioritize investments.”
U-46 is also to receive $37.2 million in federal funding.
“Because federal funding is subject to Congressional action and administrative decisions, there is always some uncertainty,” Williams said in the email. “U-46 monitors those developments closely and updates revenue projections multiple times throughout the year to reflect the most current information. This allows us to adjust responsibly as decisions are made in Washington.”
Cornelissen told the board Monday that the biggest year-over-year increase would be for capital projects, which are escalating from $145 million in the current fiscal year to $186.5 million.
The money will fund construction of new middle and elementary school being built in Elgin; additions and renovations at Kimball Middle School in Elgin, Kenyon Woods Middle School in South Elgin, Century Oaks Oaks Elementary in Elgin and Glenbrook Elementary in Streamwood; and the conversion of Illinois Park in Elgin from an early education center to an elementary school.
The district collected about $840.7 million in revenue in the 2024-25 fiscal year. Projected revenue is about $21.3 million less for the 2025-26, Cornelissen said, because federal Elementary and Secondary School Emergency Relief funding is no longer available.
“Those federal relief dollars were temporary, and we were very mindful to spend them on one-time priorities rather than ongoing operations,” Williams said in her email. “That approach ensured the district did not create an operational deficit once the funds expired, and our core budget remains stable moving forward.”
Aside from capital projects, the district’s largest expenditures are for staff salaries, at a projected $440 million, and employee benefits, expected to cost about $124.9 million. That’s $44.2 million more than the prior fiscal year, Cornelissen said.
On Tuesday, Williams said U-46 hired about 100 additional elementary teachers for the 2025-26 school year. This was necessary to support the extension of the elementary school day and to expand course offerings in digital literacy, health, science and physical education, she said in her email.
“These changes directly align with our strategic priorities of strengthening literacy, numeracy and conditions for learning. Salaries also increased due to annual raises provided to employees,” Williams said.
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According to a budget summary, the proposed spending plan has a deficit of nearly $144 million, driven mostly by one-time expenditures associated with the Unite U-46 capital projects. The shortfall will be covered with money that’s been accumulated in existing fund balances and the issuance of new bonds.
The proposed budget is to be adopted by the school board at its Sept. 22 meeting.
Mike Danahey is a freelance reporter for The Courier-News.