Crete-Monee 201-U Board Reviews Tentative Budget with Projected $722,000 Deficit

Article Summary: The Crete-Monee School District 201-U Board of Education reviewed a tentative 2025-2026 budget that projects a $722,209 operating deficit, driven largely by a nearly $2.75 million reduction in anticipated revenue from state and federal sources. District officials outlined cost-saving measures, including departmental budget cuts and a personnel reorganization, designed to mitigate the shortfall.

Crete-Monee FY26 Budget Key Points:

• The tentative budget projects an operating fund deficit of $722,209 for the 2025-2026 fiscal year.

• A major factor is a nearly $1.6 million decrease in Evidence-Based Funding after the district shifted from Tier 1 to Tier 2 status.

• The depletion of federal ESSER pandemic relief funds accounts for another significant revenue loss of nearly $788,000.

• Efficiency measures include a 10-15% reduction in department budgets and a decrease in non-capitalized equipment spending of over 60%.

CRETE — The Crete-Monee School District 201-U is facing a challenging financial landscape, as the Board of Education reviewed a tentative 2025-2026 budget projecting a $722,209 operating deficit. The shortfall is primarily attributed to a significant drop in state funding and the exhaustion of federal pandemic-relief aid.

During the August 12 board meeting, Director of Finance Brian Johnson presented the budget, which anticipates total operating revenues of $99.16 million against operating expenditures of $99.88 million.

A key driver of the revenue decrease is the district’s shift from Tier 1 to Tier 2 status in the state’s Evidence-Based Funding (EBF) model, resulting in a funding loss of $1,587,193 compared to the previous year. Assistant Superintendent for Business and Operations Jason Okrasinski explained that the change was triggered by an increase in the district’s local property wealth, or Equalized Assessed Valuation (EAV), largely from the expiration of TIF 5 in University Park.

“The difference between tier one and tier two…we came in at 76% of an adequacy target, and that’s what bumped us to tier two,” Okrasinski said. He noted that the district barely crossed the threshold, with some districts remaining in Tier 1 at 75.7% adequacy. State aid is designed to supplement local funding, so as a district’s local revenue capacity increases, its state aid allocation decreases.

The budget is also impacted by the depletion of federal Elementary and Secondary School Emergency Relief (ESSER) funds, which provided nearly $788,000 in the previous fiscal year. Other factors include a lower Consumer Price Index (2.9% vs. 3.4% last year), which limits the property tax levy increase, and a projected 25% decrease in corporate personal property replacement tax revenue. The combined revenue reduction totals approximately $2,747,912.

To address the shortfall, the administration has implemented several cost-saving measures. These include a 10-15% reduction in department and building budgets, focused on supplies and materials, and a reorganization of personnel. Spending on non-capitalized equipment has been cut by over 60%, representing a savings of $936,600.

Johnson also highlighted some positive financial developments. The district secured a favorable three-year transportation contract that mitigates previously projected increases. Additionally, officials have increased revenue from invoicing other districts for McKinney-Vento student transportation costs, bringing in $160,000 in previously uncaptured funds.

Board President Maurice Brown emphasized the district’s commitment to fiscal responsibility. “We’re not going to use temporary funds for permanent positions,” he said, referencing the end of the ESSER grants.

The budget is currently tentative and will be available for public inspection. A public hearing and final vote on the budget are scheduled for the September board meeting.