The Naperville District 203 School Board approved a budget for the coming school year Monday, but only after a heated exchange with one board member who claimed the true deficit was not being reported.
Board member Melissa Kelley Black accused the administration of blindsiding the board, alleging the spending plan’s operating deficit is nearly $40 million, not the $3.98 million reported in the document.
Board members have spent multiple meetings explaining the difference between the district’s operating fund and capital projects fund in the 2026-27 budget, which goes into effect July 1. The two funds are part of the larger overall budget.
Money earmarked for operations covers the district’s day-to-day operational costs, including overhead and employee salaries and benefits. This year, D203 expects to collect nearly $366.2 in revenue for that fund and to spend about $370.1 million. The $3.98 million shortfall is significantly less than the $12.4 million deficit that had been initially projected before cuts were made and new revenue sources found.
However, the district does plan to use $39.8 million in its surplus fund to pay for several needed building improvements. These are one-time construction projects, which will be paid for with savings accumulated over time and being kept in reserve for such a purpose.
Drawing down from the fund balance is allowed under a board policy that states that if cash reserves exceed their target, the board should consider using the money on infrastructure updates, major facility maintenance and capital projects.
Several board members over the last month have tried to explain the difference between the day-to-day costs of running the district versus spending on the improvement projects.
At the meeting, board Vice President Kristine Gericke charged that Kelley Black has sent out false information to the community.
“You are incorrect in this constant narrative,” Gericke said as Kelley Black tried to talk over her.
Board member Joe Kozminski said he feels “like a broken record” in trying to explain how the process works.
“You continue to paint this false narrative about the condition of our financial state,” Superintendent Dan Bridges said to Kelley Black.
District 203’s budget challenges are about day-to-day operating costs, such as staffing, utilities, programs and services, a district statement said.
“To clarify, the district is not facing a $40 million operating deficit; the projected operating deficit for 2026-27 is $3.9 million,” the statement said. “Capital project dollars are different because they are one-time savings set aside for major building and infrastructure needs. Using those funds for facilities helps maintain safe, efficient schools and can avoid borrowing or interest costs.
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“However, one-time savings cannot fix an ongoing operating deficit. That is why the district must both maintain its facilities responsibly and continue aligning annual expenses with annual revenue.”
The board initially asked administration to close the entire $12.4 million projected budget gap, but ultimately decided it was better to reduce it gradually when learning in March that 38 teachers would need to be laid off to meet that goal.
Instead, the upcoming budget eliminates 59 positions left open through retirement and resignations.
Personnel costs make up about 80% of the budget, with costs estimated at $238.6 million for salaries and $59.5 million for benefits, according to the budget. The decision not to fill vacancies helps return the district to pre-pandemic staffing levels and eliminates positions added to help students recover from pandemic learning loss, officials have said.
Other cost-savings measures include reducing school-level budgets by 15% and department budgets by 25%; eliminating duplicative resources, software and subscriptions; reducing nonessential travel, professional learning and conferences; and increasing fees, such those for driver’s education, early childhood tuition and facility rentals, to better align with their true costs.
The district will also reduce the number of replacement buses purchased this fiscal year, resulting in a savings of about $1.2 million, according to the budget proposal.
Five-year financial projections dating back to at least 2023 have forecast the mounting deficit, and it is not something that is a surprise, Bridges said.
The district has been paying for capital improvement projects from savings it has accumulated over many years. The improvements include building renovations and a new transportation facility to eliminate the need for temporary trailers.
Some of the projects include renovations for the Project Lead the Way STEM classrooms at Washington Junior High, renovations to the Family and Consumer Science and Project Lead the Way classrooms at Kennedy Junior High, elimination of mobile classrooms and conversion an interior courtyard into classrooms at Kennedy Junior High, and renovation work at Naperville North High School.
Michelle Mullins is a freelance reporter for the Naperville Sun.