Laurie Heinz
Palatine Township Elementary District 15 is projecting a $7.2 million deficit in its operating revenues for the 2026 fiscal year and could see shrinking reserves.
School finance officials presented the sobering forecast as they unveiled the tentative budget at Tuesday’s board meeting, attributing the shortfall to several key factors.
That included the loss of dollars previously received from federal Elementary and Secondary School Emergency Relief (ESSER) funds and the Corporate Personal Property Replacement Tax.
If there is encouraging news, it stems from the fact that a $13 million deficit was expected this school year, but Chief School Business Official Diana McCluskey said the district identified about $6 million in savings.
Superintendent Laurie Heinz said the district has been paying attention to staffing levels — retirements, attrition, terminations, unfilled positions — as well as gauging enrollment against registration.
Anthony Fashoda, director of fiscal services, said department budgets have remained basically unchanged.
“The team did a great job working their budgets and keeping everything relatively flat,” he said.
The district is seeing big increases from contracted special education services and other hard-to-fill positions, which have ballooned from $500,000 to about $5 million annually.
“It’s harder to find (English Learner) teachers, special education teachers, so we’re having to go to contract service agencies for teaching staff and related service staff that are required based on (special education) needs,” Heinz said.
Heinz said the district shed about 50 positions in anticipation of the loss of federal funds, but it also beefed up its kindergarten workforce and added more middle school teachers.
The district has been able to maintain a fund balance equal to 35% of annual operating expenses. But that could drop to 25%, or the equivalent of three months of operating expenses, school finance officials warned. Generally accepted accounting principles recommend reserves be kept at a level high enough to cover at least two months of general operating expenses. There is no maximum reserve recommendation.
The final budget will be presented in September.
