Evanston/Skokie District 65 Tentative Budget Shows $5.1M Operating Deficit

Even after more than $6 million in cuts, District 65 still projects a FY27 budget gap and lower cash reserves.

By Rachel Barnes, Patch Staff

Sep 3, 2026 2:01 PM CDT

District Chief Financial Officer Eric Miller told board members the plan shows $179.9 million in operating revenue and $185.0 million in operating expenditures. (Google Maps)

EVANSTON, IL — Evanston/Skokie School District 65 is projecting a $5.1 million operating deficit for fiscal year 2027 under a tentative budget presented to the school board Monday.

District Chief Financial Officer Eric Miller told board members the plan shows $179.9 million in operating revenue and $185.0 million in operating expenditures.

The updated FY27 budget includes an estimated $6.3 million in expenditure reductions that the board approved last spring.

Those changes included staffing reductions, school closures and other operational changes. The district also continues to look for added savings through staff attrition and by leaving vacant positions unfilled when that will not significantly affect essential services or support for students and staff, Miller said.

According to the budget presentation, the district has also consolidated several transportation routes for savings during the current year.

Some of those savings were offset by a $3.625 million one-time Foster School closeout expenditure and a $2.5 million reduction in projected property tax revenue, Miller said. The district said the Foster closeout cost will affect the FY27 reported result and fund balance, but is not part of the recurring operating cost structure in FY28 and beyond.

The tentative budget also does not include a potential $4 million sale of Bessie Rhodes that had been part of estimates prepared by the previous chief financial officer. The district said these adjustments provide a more accurate FY27 financial baseline as administrators turn to FY28 and updated five-year financial projections.

If the board gives final approval later this month, the district would have as little as 77 days of cash on hand by the end of the fiscal year, according to the budget discussion. That is below the Illinois State Board of Education's 180-day recommendation for local school districts.

The board must formally adopt the FY27 budget by Sept. 30, 2026. A public hearing on the spending plan is scheduled for Sept. 28, 2026.