District 116 to explain impact of $11 million budgeting error
The first public explanation of how an $11 million budgeting error in Round Lake Area Unit District 116 was made and challenges that follow will be presented Monday.
Superintendent Donn Mendoza will outline what happened, the resulting impacts and next steps in a budget update during the school board meeting beginning at 7 p.m. at John T. Magee Middle School, 500 N. Cedar Lake Road, Round Lake.
Meanwhile, members of the Round Lake Education Association met Friday to consider a district request to take reduced salary increases for the current and 2026-27 school years.
District officials have emphasized no money is missing but the oversight by a former employee has created ripple effects they are scrambling to address.
Doing that involves cutting expenses for the current and next school year. That will include reducing eight administrative positions in 2026-27 and not filling some vacancies, limiting overtime and reducing discretionary budgets by 10% this year.
Information to be presented by Mendoza says the 2024-25 budget significantly was underestimated in staff salaries and special education costs “leading to incorrect assumptions, uninformed decisions and negative impacts on both the current and next fiscal year.”
The budget reviewed and approved by the school board in August and September of 2024 was based on inaccurate baseline information that didn’t match the amount of money actually needed.
The district said it relies on the business manager/treasurer to alert the school board, administrators and the community if there are budget warning signs.
Because the budget is entered manually, the district says it depends on that person’s expertise to make sure the numbers match the amount of money needed, even if that means showing a deficit and starting a reduction plan, which didn’t happen.
Stronger controls and oversight are being implemented for the 2026-27 budget.
A tentative version for posting follows Mendoza's presentation on the agenda. However, the numbers could change depending on a union vote Wednesday on accepting smaller salary increases. The final budget will be approved in September.
School districts don’t know how much they will receive in general state aid or some grants until after the fiscal year begins, according to Heather Bennett, deputy superintendent.
The tentative budget to be considered Monday is a worst-case scenario forecast with the largest amount of staffing and other reductions, she said.
District 116 says it has significant cash reserves but that source can’t be used to pay salaries and benefits.
That’s because school districts are required to present and post a tentative budget to the school and community 30 days before approving a budget by Sept. 30, Bennett added.