Indian Prairie District 204 board OKs $476 million 2026-27 budget, which includes $5.8 million deficit

The Indian Prairie School District 204 board has approved a $476.4 million operating budget for the 2026-27 school year.

Up roughly $21 million from last year, the budget includes a $5.8 million deficit. The district says it is taking or has taken a number of measures intended to save money going forward.

The district presented a tentative budget last month, and it went on public display. According to District 204 Chief School Business Official Matt Shipley, the district’s Business Office received no public feedback on the tentative document.

So the budget presented and approved Monday, Sept. 28, is the same as the one discussed last month.

The approval marks the final step in adopting the budget, with budget filings due by Sept. 30, according to Shipley. The fiscal year extends from July 1, 2026, to June 30, 2027.

The district’s planned operating expenses for the year total $476.4 million, per the district budget. Operating revenues, meanwhile, are projected to come in at a little under $470.6 million, which is around $15 million higher than 2025-26.

The operating budget does not include planned capital spending or debt service.

Property taxes make up about 78% of the district’s operating revenues, according to Shipley’s presentation. The budget assumes the property tax levy will include a 2.7% increase based on the Consumer Price Index, or CPI, which is a measure of inflation set by the U.S. Bureau of Labor Statistics.

The district will look to adopt its annual tax levy in December, per the presentation.

Salaries and benefits make up more than three-quarters of the district’s planned spending for the year, according to Shipley’s presentation. He noted that the budget reflects all significant contracts and agreements, including recently approved union agreements.

These figures leave the district projected to spend $5.8 million more than it is expected to take in this year. But the district is looking at balanced budgets in the years to come. The district’s fund balance will remain above 25% of operating revenues, in line with district priorities, Shipley’s presentation noted.

Shipley said the deficit is a result of several factors, including special education services spending, rising costs for things like transportation and employee benefits, and reduced federal funding.

The district plans to reduce overall staffing by 20 full-time equivalent positions, according to Shipley. Last year, the district reduced its staff by 10.5 full-time-equivalent positions.

Indian Prairie is also attempting to save money in other areas.

For example, it is looking at growing substitute teacher expenses, Shipley said previously, and how the district can control those costs — like minimizing avoidable teacher absences for things like professional development. The district’s school board also recently approved a pay cut for retired teachers who work as substitutes.

As for capital expenses, which are separate from the operating budget, Shipley said the district expects to spend roughly $118 million this year, which is going toward significant work at schools, including Waubonsie Valley High School in Aurora and Neuqua Valley High School in Naperville.

The district is continuing with its major facilities overhaul, which is being funded by the district selling $420 million in bonds. The bond sale was approved by voters via a referendum in 2024.

The bonds are to be paid for using a continuation of an existing 37-cent property tax per $100 of equalized assessed value that would otherwise have expired at the end of 2026, meaning the tax rate for residents in terms of their contribution to capital projects would effectively remain flat.

The construction work includes school-specific renovations at Waubonsie Valley High School, Neuqua Valley High School, Metea Valley High School, the Birkett Freshman Center, and Gregory and Hill middle schools, as well as district-wide safety and security upgrades, LED lighting installations and other infrastructure projects.

mmorrow@chicagotribune.com