With no new large-scale revenue sources looming on the horizon, Naperville School District 203 officials are planning to get out their scalpels and make trims to the expense side of the ledger to address future financial shortfall projections.
Administrators at a board of education meeting Monday, Feb. 2, provided an update on a 5-year financial forecast that was first discussed in November.
An updated look at the 5-year financial forecast
Mike Frances, Naperville 203’s chief financial officer, indicated several pieces of data have come into sharper focus since the presentation last fall, including the 2026 consumer-price index of 2.7%. The figure reflects the maximum tax increase that can be levied at the end of this year for the 2027-28 school year budget.
“The estimated CPI used in November was 3%, so this slightly lower value has a negative impact on revenue, moving forward,” Frances said during his updated presentation. “Any salaries that also are tied to the CPI were also adjusted accordingly.”
Big picture, updated projection figures point to continued deficits if no action is taken. The 2026-27 school year budget has an anticipated $12.39 million shortfall, with gaps between both sides of the financial ledger continuing in the ensuing years. The financial shortfall in the 2030-31 school year could balloon to $27.24 million if no action is taken.
Working to close the D203 financial shortfall sooner, rather than later
Frances said there are a few possibilities on the table to close the gap between revenues and expenses.
Out of the gate, administrators and board members expressed a desire to meet with state legislators and professional groups to advocate for more state funding. Approximately 85% of Naperville 203’s revenue, based on current state law and the funding formula, is derived from property taxes.
“We are focused on maximizing existing revenue,” Frances said. “This begins with continued advocacy for additional state funding. We will work with our legislative partners and statewide organizations to advocate for funding levels that more accurately reflect the true cost of the mandates districts are required to meet.”
Fee increases are also a possible consideration, though any adjustments, Frances noted, would have minimal impact on the broader budget. Fee revenue, he said, contributes about 1% of Naperville 203’s overall budget.
With planning underway for the 2026-27 school year, Frances said a three-pronged approach to tackling expenses is underway. An effort to reduce discretionary spending is one focal point. Officials are also planning on consolidating duplicative resources and streamlining staffing.
“This work is guided by data and focused on long-term sustainability,” Frances said. “Together, these budget-balancing measures represent a balanced, responsible approach — one that prioritizes students, uses taxpayer dollars wisely, and allows us to remain financially stable over time.”
Superintendent Dan Bridges said preliminary work on assembling a 2026-27 school year staffing plan is underway.
“Our departments are currently in the process of preparing their detailed budgets for the business office for consideration of the building of the budget, with direction from the business office,” Bridges said. “Cabinet is in the process of going through its staffing projection, under the sense of streamlining our staffing, where appropriate and necessary.”
Bridges added that a more fleshed-out staffing plan is anticipated next month, and the board will be asked to vote on it at a Monday, March 16, meeting.
Board of Education weighs in on plans presented
The board of education gave favorable comments to the overall framework presented at the recent meeting.
“There is going to be some tough decisions, but I think it is the right thing to do, in the long run,” board member Joseph Kozminski said. “We need the finances healthy, for the long term. If we keep pushing it forward, it’s just going to compound.”
From her vantage point, board member Holly Blastic said she believed acting now, rather than later, is a prudent move.
“As hard as it is, I do recognize that nipping this now, and addressing this now, is going to save us money down the line,” Blastic said. “It’s just going to compound.”
Board President Charles Cush said he believed administrators would present a proposal that weighed all of the different factors in play.
“I’m pretty confident that the administration will take the direction that we provided to try and get the budget as balanced as possible, recognizing that anything we do this year will help us because the gap just kind of compounds,” Cush said.
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