When it comes to assembling many of the pieces of the puzzle that comprise Naperville School District 203’s operating budget for the upcoming 2025-26 school year, it is expected to be a wash, based on recent preliminary information.
Mike Frances, Naperville 203’s chief financial officer, provided the board of education with a financial update at a meeting Monday, April 21. During the presentation, Frances delved into the different revenue sources — some expected to rise or hold steady for the 2025-26 school year and beyond, and others in decline.
Property taxes make up 85.3% of district’s revenue
During the presentation, Frances presented a pie chart that broke down Naperville 203’s various revenue sources. In the upcoming budget, officials again anticipate the overwhelming lion’s share of income being sourced from local property taxes — to the tune of 85.3%.
Frances said the good news for Naperville 203 — from a budget planning perspective — is the district is largely shielded from some of the unknowns that arise from state and federal budgets.
“We know what our property taxes are going to be next year, and even the year beyond that,” Frances said.
Current forecasting points to 2.5% tax levy increases in the next four fiscal years, based on projected consumer price index increases, alongside Illinois’ Property Tax Extension Law Limit (PTELL), which places parameters around how much taxing jurisdictions within the state can increase taxes annually.
Frances also presented the board with equalized assessed value (EAV) growth in the upcoming years, which is expected to hold steady and positively impact the budget. Preliminary figures point to $30 million in EAV growth in each of the upcoming fiscal years.
State and federal funding sources for District 203
While the picture around local funding sources is relatively clear, what is funneled into Naperville 203 from state and federal sources is murkier, though projections point to declines in specific revenue budget line items.
Frances in his presentation touched on one particular revenue source — corporate personal property replacement taxes — which is a lever controlled through the state and is expected to drop in year-over-year comparisons. CPPRT comprises about 1.5% of the district’s revenue.
In the upcoming year, Naperville 203 is anticipating $3.038 million in revenue through CPPRT; by comparison, the district received $8.19 million in CPPRT support three years ago. Frances, however, offered clarity on the fluctuating figures.
“This one is not looking real good in the future, but it’s really going back to what I would call ‘normal,’” Frances said, pointing out CPPPRT historically has been in the range of $2.5 to $3 million annually before the pandemic and inflation took hold.
Frances also briefly touched on federal revenue projections under President Donald Trump’s administration. Dollars through the U.S. Department of Education make up about 2.7% of Naperville 203’s revenue.
Naperville 203 receives federal funding for several initiatives, including the school breakfast/lunch program, implementation of the Individuals with Disabilities Education Act (IDEA), Title I funding for closing achievement gaps and Medicaid support.
“The overall federal budget (for Naperville 203) is going to be cut by about $500,000 for these projections, and that’s realistically somewhat optimistic,” Frances said.
A precursor to unveiling the full budget draft
Frances’ recent presentation was a precursor to the official unveiling of a draft of the 2025-26 school year budget, which is expected to take place at the next board of education meeting on Monday, May 5.
“We thought it was an appropriate time to provide a little bit of a financial update for the board and community on some data that we’re looking at that informs this process,” Superintendent Dan Bridges said.
Once administrators present the draft budget, the board will dig into the document and potentially recommend changes or adjustments in the next month-and-a-half. A citizens’ advisory committee also will review the document once it has been presented.
In keeping with past practice, Naperville 203 officials aim to have the 2025-26 school year budget adopted in late June before the new fiscal year officially kicks in on July 1.
During a brief round of discussion, following the recent budget presentation, the board was supportive of the information shared.
“I really appreciate the budget update and the clarity on all of these different revenue sources,” board member Joe Kozminski said.
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