Peotone School Board Passes Revised Budget, Averting Financial Shutdown

Peotone School Board Special Board Meeting – Monday, September 29, 2025

Article Summary: Facing a state-mandated deadline, the Peotone Board of Education narrowly passed a revised 2025-2026 budget with a projected $3.8 million deficit after making over $200,000 in last-minute cuts. The vote, which came just one day before the district would have lost its authority to spend money, followed a week of intense debate after the board’s initial rejection of the budget amid a severe financial crisis.

Peotone CUSD 207U Budget Key Points:

• Budget Passed: The board approved the revised Fiscal Year 2026 budget in a special meeting after rejecting the initial proposal a week prior.

• Last-Minute Cuts: Over $200,000 in cuts were made to the budget, including approximately $100,000 from purchased services and $10,000 in supplies from the Operations & Maintenance fund.

• Deficit Remains: Despite the cuts, the budget still projects an operating deficit of approximately $3.8 million and includes a placeholder to issue up to $4.85 million in new working cash bonds for cash flow.

• Reluctant Approval: Several board members who previously voted no changed their votes, expressing continued concern but acknowledging the necessity of passing a budget to avoid a district-wide shutdown.

PEOTONE, IL – The Peotone Board of Education on Monday, September 29, 2025, passed a revised budget for the 2025-2026 school year, narrowly averting a financial shutdown just one day before the state-mandated deadline.

The budget, which still projects a deficit of nearly $4 million, was approved during a special meeting called after the board rejected the initial proposal a week earlier. The previous rejection highlighted the district’s dire financial position, having exhausted its borrowing capacity and facing what some board members described as only one year of solvency.

“Without this passed budget tonight… it’s essentially defunding the district,” Superintendent Brandon Owens confirmed during the meeting, noting that failure to approve a budget by September 30 would mean the district could not legally spend money, including for payroll and essential supplies.

In the week between meetings, the administration trimmed over $200,000 from the proposed budget. Business Manager Adrian Fulgencio explained that the cuts included approximately $100,000 in purchased services and $10,000 in supplies from the Operations and Maintenance fund. Another significant change involved shifting the cost of a facility feasibility study from the Tort fund to the Operations and Maintenance fund.

Despite the cuts, the budget remains deeply unbalanced. It includes a placeholder to issue up to $4.85 million in new working cash bonds to manage cash flow throughout the year. The final amount to be borrowed will be determined after further analysis.

The vote to approve the budget came after considerable debate, with several board members who voted against the initial budget changing their stance. Board member Tim Stoub, who previously voted no, changed his vote to yes, citing the need to keep the district operating while demanding immediate action on long-term financial planning.

Public commenter Jim Bowden sharply criticized the board and administration, questioning the size of the business office staff and accusing the district of “lousy business” for holding onto $5.2 million in bonds for a stalled baseball field project while paying interest. He suggested the board could perform an “extraordinary call” to recall the bonds.

In response to board questions, administrators confirmed they are exploring options with financial advisors regarding the bonds, which could be used to extend the district’s financial runway.

Board member Ashley Stachniak, who voted against the revised budget, continued to press the administration on the district’s spending and lack of a long-term plan. She noted that while a deficit reduction plan is being submitted, it is not currently required by the Illinois State Board of Education (ISBE).

Fulgencio explained that the bulk of the deficit is tied to salaries and benefits, and with the school year already underway, it is too late to make personnel cuts for the current fiscal year. “If you want cuts, if you want to make up that $4 million, it’s going to be in salaries and benefits,” he said. “Fortunately, that’s not an option at this point since it’s already September 29th.”