U-46 plans to spend $963M in 2025-26 school year, including major construction projects
The Elgin Area School District U-46 board on Monday approved a $963.2 million spending plan for fiscal year 2026.
It represents a 27% increase over the previous year’s spending largely driven by $186 million in capital expenditures for the Unite U-46 initiative. That will fund major projects, including the new middle school under construction in Elgin, as well as additions and renovations at Kimball and Kenyon Woods middle schools and several elementary schools. The improvements were funded through the district borrowing $179 million in bonds that voters approved in April 2023 and using money from reserves and other sources.
Salaries and benefits make up the largest share of expenditures — $564 million or nearly 59% of the budget. The district also added about 100 elementary teachers for the 2025-26 school year to support extending the school day and expanding course offerings in digital literacy, health, science, and physical education.
The district is projecting $819.4 million in revenues for fiscal year 2026, excluding new bonds issued for construction. Local property taxes are the main source of income, supplemented by $306 million from the state’s Evidence-Based Funding formula.
This year’s EBF funding increase of $4.8 million is lower than what district leaders anticipated and much smaller than last year’s $18 million boost, officials said.
The difference stems from U-46 moving from Tier 1 to Tier 2 status, reducing the district’s share of new state dollars.
U-46 Deputy Superintendent of Operations Ann Williams said the reduced allocation presents new challenges for advancing equity across schools.
“These resources are critical to our ability to close opportunity gaps and provide all students with access to the programs and the supports they deserve,” she said. “The lower-than-expected increase in Evidence-Based Funding means U-46 will need to continue exercising fiscal discipline and carefully prioritize investments.”
Revenues also decreased slightly compared to the previous year, with a projected $20 million reduction due to the end of COVID-era federal relief funds.
“Those federal relief dollars were temporary, and we were very mindful to spend them on one-time priorities rather than ongoing operations,” Williams said. “That approach ensured the district did not create an operational deficit once the funds expired, and our core budget remains stable moving forward.”
The district anticipates having about $821 million in fund balance at the end of the fiscal year — about $54 million lower than the previous year. This healthy balance provides a financial cushion allowing the district to maintain day-to-day operations, fund committed capital projects, and sustain resources that support students, officials said.