The Geneseo Community Unit School District #228 Board of Education reviewed a tentative FY27 budget Thursday that maintains all current educational programs but projects a nearly $976,000 deficit in the Education Fund as the district continues to confront rising healthcare and special education costs, declining enrollment and a weakening cash position.
Screenshot from FY27 Budget Presentation- linked in sources
The tentative budget was presented to the board August 13 and will remain on public display at the district office before final approval in September.
Despite the financial pressures, district officials emphasized that all educational programs will continue to be offered and funded during FY27. The district remains classified as Tier 2 under Illinois' Evidence-Based Funding model and expects to receive approximately $180,000 in new funding. Transportation funding remains prorated, however, at 67% for regular transportation and 55% for special education transportation.
Education Fund Projects $975,805 Deficit
The FY27 budget projects a $975,805 deficit in the Education Fund, leaving a projected ending balance of approximately $3.85 million.
Operations and Maintenance is projected to generate a $97,592 surplus and finish with approximately $2.83 million, while Transportation is projected to run a $38,263 deficit and finish with approximately $532,000.
The district is also budgeting a nearly $3 million reduction in Working Cash, which would leave approximately $4.3 million in that fund. Total operating fund balances are projected at approximately $15.3 million. District officials indicated they should consider a permanent transfer from Operations and Maintenance to the Education and Transportation funds during FY27.
Spending Climbs 5.72%
Screenshot from FY27 Budget Presentation- linked in sources
Total operating expenditures are budgeted at approximately $37.65 million, an increase of 5.72% from FY26.
Salaries and wages account for approximately $17.46 million, up 3.64%, while purchased services increase 3.94% to approximately $7.92 million.
The largest percentage increase comes from employee benefits, budgeted at approximately $4.72 million — a 29% increase from FY26.
Other objects and non-capital assets, which include Henry-Stark Special Education costs, increase 13.44% to approximately $4.24 million. Supplies are one of the few areas moving in the opposite direction, declining 5%.
Healthcare and special education were specifically identified by the district as continuing financial pressure points.
Board members discussed healthcare options and the possibility of considering high-deductible plans in the future. District CSBO and Assistant Superintendent Tim Gronski summarized the concern during the discussion, warning that healthcare costs could "bankrupt school districts."
Enrollment Continues to Decline
Another significant piece of the district's financial picture is enrollment.
The budget presentation shows district enrollment falling from nearly 2,800 students in 2007 to fewer than 2,400 in 2025. At the same time, the percentage of students classified as low-income has increased substantially, reaching 29.29% in 2025.
District officials said maintaining financial stability will require continuing to match staffing levels with enrollment.
The district has already reduced staffing this year, losing three full-time equivalent positions and a contractor, while emphasizing that reductions cannot be allowed to affect educational programs or what students receive in the classroom.
The district's longer-term financial projections assume another seven full-time equivalent positions will be absorbed through attrition between FY28 and FY30. Those projections also assume benefits increase 8% annually, other expenditures rise 2.5% annually, local revenues increase 5% annually and state and federal revenues remain flat.
Geneseo Spending Remains Below State and Regional Levels
Screenshot from FY27 Budget Presentation- linked in sources
Despite the district's current financial pressures, Geneseo continues to spend considerably less per student than both the Illinois and regional averages.
The district's presentation showed Geneseo's per-student spending at roughly $13,000 in 2024, compared with approximately $16,000 regionally and more than $21,000 statewide.
Geneseo briefly moved above those averages during the Project LEAF construction years before dropping back below both benchmarks. District officials said the goal moving forward is sustainability and proactively matching staffing with enrollment.
Cash Reserves Expected to Decline
The district enters FY27 with substantial reserves, but projections show those reserves declining during the year.
Working Cash is projected to fall from approximately $7.29 million to $4.30 million, while the Education Fund balance is projected to decline from approximately $4.82 million to $3.85 million.
Across all funds, the district projects its available cash position declining from 218 days cash on hand at the end of FY26 to 174 days at the end of FY27.
The district's budget presentation describes both the beginning and projected end of FY27 as a weakening cash position.
Three-Year Plan Targets Smaller Deficit
The district's longer-term strategy calls for reducing the Education Fund deficit while protecting core educational opportunities.
Under assumptions presented to the board, the district would absorb seven positions through attrition, transfer $2 million annually from Working Cash and continue aligning staffing with enrollment.
If those assumptions hold, district projections indicate the Education Fund deficit could decline from 3.7% to 1.1% by the end of FY30.
However, the presentation also identifies another major financial decision on the horizon.
District officials said long-term sustainability would likely require either new Working Cash Bonds in approximately two years or an Education Fund referendum, in addition to continuing to adjust staffing as enrollment declines.
Throughout the financial discussion, administrators and board members emphasized balancing fiscal sustainability with protecting students and classroom programs.
Board member Kyle Ganson summarized that priority during the discussion: "It's about about people and kids."
Military Family Initiative
The board also discussed a district initiative designed to strengthen communication with military families.
The initiative would require a district policy and formal resolution but would come at no cost to the district. Travis Mackey would serve as the district liaison.
Ganson said the proposal "catches the essence of what we're about."
Policy and Board Business
The Board Policy Committee discussed changing the way outside flyers are distributed through the schools, with information moving toward digital distribution. Additional policies involving student cell phones are also expected to come before the board.
The board unanimously approved its consent agenda and personnel consent agenda, along with board display postings, meeting locations and Board of Education operating agreements.
The board also conducted its annual review of closed-session minutes.
The tentative FY27 budget will return to the Board of Education in September for final consideration.
Sources
Geneseo CUSD #228 — FY27 Tentative Budget Presentation, presented by Tim Gronski, Assistant Superintendent/Chief School Business Official, August 13, 2026. FY27 Budget Presentation
Geneseo CUSD #228 Board of Education — August 13, 2026 Regular Meeting Agenda. School Board Meeting Agenda
Meeting notes from the August 13, 2026 Geneseo CUSD #228 Board of Education meeting, Sarah DeMaranville.