Lincoln-Way 210 Board Approves $172.7 Million Budget with Planned Deficit for Bus Purchases

Article Summary: The Lincoln-Way Community High School District 210 Board of Education approved the Fiscal Year 2026 budget, which includes a planned operating deficit of $814,000 to accommodate the purchase of a new fleet of school buses. District officials emphasized the deficit is a non-recurring, strategic expenditure and that the district’s overall financial health remains stable with a 34% operating fund balance.

FY 2026 Budget Key Points:

• The board on Thursday, September 18, 2025, unanimously adopted the $172.7 million expenditure budget for the 2025-2026 school year.

• The budget includes a planned $814,000 operating deficit, primarily driven by the second of two major bus fleet purchases.

• Excluding the non-recurring bus purchase, the district projects a 4.3% increase in year-over-year spending, down from the 7.71% figure that includes the capital purchase.

• Despite the planned deficit, the district will maintain an operating fund balance of 34%, exceeding the board’s target of 33%.

The Lincoln-Way Community High School District 210 Board of Education on Thursday, September 18, 2025, unanimously approved a $172.7 million budget for the upcoming fiscal year, a plan that includes a strategic operating deficit to fund the purchase of new school buses.

Assistant Superintendent Michael Duback presented the final budget, noting that while it shows an $814,000 operating deficit on paper, this is a planned, one-time occurrence and not a structural issue. The deficit is the result of the district’s decision to purchase a new set of 32 to 35 buses rather than continue leasing them, a model the board supported last year for long-term cost savings.

“On paper, because of the invoice for the buses, [it’s a] deficit, operational, non-recurring,” Duback explained in response to a question from board member Joseph M. Kosteck. “We don’t anticipate this being a recurring [issue]. It’s not structural in any way.”

The total budget anticipates a 7.71% increase in operating fund spending over the previous year. However, Duback provided context for that figure, explaining that the bus purchase significantly inflates the number.

“The financing to own and the purchasing of a very substantial capital asset in several very expensive buses to me is not really an operating expense,” Duback said. “However, because they’re buses and it is spent out of the transportation fund, it needs to be recorded in an operating fund.”

When the bus purchases from this year and last are excluded from the calculation, the projected year-over-year increase in recurring spending is a more modest 4.3%. The budget projects a 3.73% increase in operating revenues.

Despite the planned deficit, Duback assured the board that the district’s financial position remains sound, maintaining a 34% operating fund balance, which is above the 33% target set by the board. He also noted a planned spend-down in the Tort Fund, which has sufficient reserves, to allocate more money toward education and operations and maintenance needs.

The budget also reflects an increase in the benefits line item to address rising health insurance costs. “We had our highest claims bill to date last month,” Duback said, adding that the district is working with its insurance broker on plan design options to achieve premium savings for the new plan year beginning in January 2026.

The spending plan allocates $4.5 million for capital projects for the summer of 2026, which is separate from the ongoing HVAC and life safety work being funded by bonds. These funds are for routine improvements to facilities, grounds, and fields as part of the district’s 10-year capital plan.

Board President Aaron P. Janik praised the administration for its detailed planning. “I think all the discussions we had regarding life safety and all of that predicted spending and like knowing where we’re going to stand in five years has given us a lot of insight,” Janik said.

The budget was adopted following a public hearing where no members of the public offered comment.