Round Lake District 116 works to address $11 million budgeting error
A budgeting error of nearly $11 million has created a major headache for Round Lake Unit District 116, which is working through a variety of adjustments to expenses to be implemented over the next two years.
Those include reducing eight administrative positions for the 2026-27 school year and not filling specified vacant positions without impacting classroom instruction, limiting overtime and reducing discretionary budgets by 10% for the current year.
District and teacher union leaders are said to have been working diligently to address the matter. A specific number of potential staffing cuts has not been announced.
“We are collaborating closely with union leadership to review potential solutions, which vary in their impact, with the goal of minimizing effects inside the classroom,” said Heather Bennett, deputy superintendent.
Added to that situation, the district was notified on Aug. 1 that its state funding allocation for 2025-26 will be reduced by $1.3 million, she added.
A “significant budgeting error” made by the former business manager when developing the 2024-25 budget was discovered about three weeks ago during a detailed review in preparation for the 2025-26 budget, Bennett said.
The error involved under-budgeting in salaries and public/private tuition, according to Bennett and the timing has created a ripple effect amounting to about $10.9 million.
Bennett said it was a “forecasting issue” and not a result of overspending and/or misplacing funds.
“Money is not missing,” she said.
The former manager left the district in August 2024 but was not fired and there are no actions to be taken now, Bennett added.
“While we are deeply disappointed by the budgeting error, we do not believe it was done with malicious intent,” Bennett said.
Decisions apparently were made in an effort to balance the overall budget as required by the state and resulted in inaccuracies, she said, and stronger oversight and improved internal controls are being put in place.
Bennett said the district is fiscally healthy and in a position to work through the situation in a “thoughtful and responsible” manner.
“The district remains fiscally strong and we are taking proactive steps to address the situation with creating unnecessary alarm,” Bennett said.
Superintendent Donn Mendoza this week hosted two optional town-hall sessions for district staff regarding what caused the budget situation and steps being taken to address it.
He’ll be providing the same presentation in open session during the tentative 2025-26 budget agenda item at the Aug. 25 school board meeting.