There’s better news now in the financial forecast for Indian Prairie School District 204 than there was a few months ago, officials said Monday, resulting in projected balanced budgets instead of deficits for the next five years.
Chief School Business Official Matt Shipley updated the school board on the district’s financial outlook three-quarters through the current fiscal year, and said some of the news is positive.
More property tax money projected for schools
Property tax revenue — which makes up roughly 78% of the district’s total income — is up $700,000 over projections, due to strong growth in existing property values, Shipley said.
The district has enough money in reserves — about $167 million — that administrators now recommend spending down of that total to offset capital expenses. And instead of needing to cut the equivalent of 19 full-time positions from next year’s budget, Shipley said new projections call for cutting only about 10.
While a financial forecast Shipley presented in February called for deficits ranging from $1.8 million to $3.1 million in budget years 2027 to 2030, updated projections now show surpluses each of the next five years, ranging from $150,000 to $980,000.
“I’m really happy to see a balanced budget forecasted,” board member Supna Jain said.
The projected deficits were small compared to the district’s annual spending of roughly $435 million. But with uncertainties about state and federal funding in today’s political climate, Shipley said they were significant all the same.
“We have very limited control of our revenues,” he said, “so when deficits arise, it’s important that we address them proactively.”
IPSD 204’s solution? Use reserves for tech
One of the main ways the district has created space in future budgets — aside from receiving more than anticipated in property taxes — is by recommending officials spend some reserves next year on technology. The current $167 million in reserves, which the district calls its fund balance, amount to about 39% of annual operating revenue — more than the 25% required by board policy and recommended by the state.
“We’re above what we need to meet the annual cash flow needs of the district,” Shipley said.
Allocating $12.1 million for technology upgrades such as firewalls, projectors, copiers, and network infrastructure would “address capital needs now and up-front, in a way that saves some long-term dollars, creates some efficiencies and ultimately becomes a key driver to balancing the budget over the next five years,” Shipley said.
The plan still would leave 32% of operating revenue — or roughly $158 million — in reserves at the end of the next five-year period.
Next steps: Budget vote in late summer
Board members can now consider whether they feel it’s appropriate to use reserves for tech purchases before voting on the 2025-26 budget. Shipley said he plans to present a preliminary budget in July, then look for board approval in August or September.
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