U-46 Unveils $963.2 Million Budget Boost for 2025-26
District U-46 has proposed a budget of $963.2 million for the 2025-26 fiscal year, reflecting a significant increase of approximately 27% compared to the previous year. This rise is primarily attributed to the ongoing capital projects and the need for additional teaching staff, as outlined by Robyn Cornelissen, Executive Director of Financial Services, during a recent school board meeting.
While the exact property tax levy will not be determined until December, Deputy Superintendent of Operations Ann Williams anticipates a tax increase of about 3%. In an email following the meeting, Williams explained, “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%.” The district is also set to receive approximately $306 million in state Evidence-Based Funding for 2026, marking an increase of $4.8 million from the previous year. However, this growth is notably less than the $18 million boost seen last year and below district leaders’ expectations.
The funding adjustment stems from a shift in funding status, with U-46 moving from Tier 1 to Tier 2, which has affected the district’s share of state funds. Williams noted, “The lower-than-expected increase means U-46 will need to continue exercising fiscal discipline and carefully prioritize investments.” She emphasized the critical nature of these resources in closing opportunity gaps and ensuring equitable access to educational programs.
In addition to state funds, U-46 will receive $37.2 million in federal funding. Williams remarked on the uncertainty surrounding federal funds, which depend on Congressional actions and administrative decisions. “U-46 monitors those developments closely and updates revenue projections multiple times throughout the year,” she stated, highlighting the importance of adapting to changing circumstances.
The most substantial increase in the budget is dedicated to capital projects, which will rise from $145 million in the current fiscal year to $186.5 million. These funds will support the construction of new middle and elementary schools in Elgin, as well as renovations at several existing schools, including Kimball Middle School and Kenyon Woods Middle School. U-46 will also convert Illinois Park in Elgin from an early education center to an elementary school.
Despite the anticipated revenue of approximately $840.7 million for the 2024-25 fiscal year, projected revenue for 2025-26 is expected to decline by $21.3 million. This decrease is largely due to the expiration of federal Elementary and Secondary School Emergency Relief funding. Williams ensured that the district had utilized these temporary funds judiciously, focusing on one-time priorities rather than ongoing operations to maintain budget stability.
Personnel costs remain a significant portion of the budget, with projected expenditures of approximately $440 million for salaries and $124.9 million for employee benefits, representing an increase of $44.2 million compared to the prior fiscal year. U-46 plans to hire an additional 100 elementary teachers for the 2025-26 school year to extend the elementary school day and enhance course offerings in areas like digital literacy and health.
Cornelissen indicated that the proposed budget includes a deficit of nearly $144 million, primarily driven by one-time expenses associated with the Unite U-46 capital projects. This shortfall will be addressed through accumulated fund balances and the issuance of new bonds. The school board is scheduled to adopt the proposed budget on September 22, 2025, as U-46 navigates the complexities of funding and educational needs in the district.
