U-46 Board of Education Approves FY2026 Budget 

Unite U-46 work drives capital expenditures

ELGIN - The U-46 Board of Education approved the fiscal year 2026 budget at its meeting on Monday, September 22. The budget reflects a commitment to fiscal equity, maintaining long-term financial stability, and a significant investment in the district’s future, primarily through the Unite U-46 capital initiative.

The district’s financial plan is aligned with its strategic plan, ensuring that every decision helps ensure that all students have access to the opportunities they need to succeed.

• Projected Revenues: The district projects $819.4 million in revenues for FY2026, excluding new bonds. Local property taxes remain the main source of income, supplemented by $306 million in state funding through the Evidence-Based Funding (EBF) formula.
• Planned Expenditures: Total spending is projected at $963.2 million, a 27 percent increase compared to the previous year. This rise is largely driven by $186 million in capital expenditures for the Unite U-46 initiative. This will fund major projects, including the new middle school being built in Elgin, as well as additions and renovations at Kimball and Kenyon Woods and several elementary schools.
• Salaries and Benefits: The largest share of expenditures, $564 million or nearly 59 percent of the budget, are made up of salaries and benefits, reflecting contractual obligations and inflationary pressures. The district also added about 100 elementary teachers for the 2025-26 school year to support the extension of the elementary school day and to expand course offerings in digital literacy, health, science, and physical education. These changes directly align with the district’s strategic priorities of strengthening literacy, numeracy, and conditions for learning.

Revenue and Expenditure Details

School District U-46 will receive $306 million in state Evidence-Based Funding (EBF) for Fiscal Year 2026, including about $4.8 million in new dollars. The increase is far smaller than last year’s $18 million boost and lower than district leaders had anticipated.

The difference stems from a shift in the district’s funding designation. U-46 moved from Tier 1 to Tier 2 status, reducing the district’s share of new state dollars. Chicago Public Schools’ move into Tier 1 this year also affected the overall distribution of funds statewide.

Dr. Ann Williams, U-46's Deputy Superintendent of Operations, stressed that while the additional $4.8 million is welcome, 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.”

The FY2026 budget reflects a slight decrease in revenue 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,” Dr. 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 an ending fund balance of approximately $821 million at the close of FY2026. This balance is a critical financial cushion that allows the district to maintain stable day-to-day operations, fund committed capital projects, and sustain resources that directly support students.

While this balance is about $54 million lower than the previous year due to planned spending on capital projects, the district will maintain a healthy level of reserves.

“This strong fiscal solvency and commitment to equity ensures the district can withstand financial pressures at every level while continuing to invest in students and schools,” Dr. Williams said.

Earlier this year, the district’s Financial Services department received two awards for producing clear and transparent financial reports from the Association of School Business Officials International (ASBO) — the Certificate of Excellence in Financial Reporting and a Meritorious Budget Award. The U-46 Board of Education honored the Financial Services team with two “Accent on Achievement” certificates this fall, including one on Monday night.

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 School District U-46, the second largest public school district in Illinois, serves families in 11 communities: Bartlett, Elgin, Hanover Park, South Elgin, Streamwood and Wayne, as well as portions of Carol Stream, Hoffman Estates, St. Charles, Schaumburg, and West Chicago. In total, the district encompasses 90 square miles within the Fox River Valley, approximately 45 minutes northwest of downtown Chicago, and includes communities within Cook, DuPage and Kane counties. Nearly 34,000 students attend the 56 district schools and programs. To learn more, visit the U-46 website, or follow us on Facebook, Instagram, YouTube and LinkedIn.