District 65 Corrects $17M Projection Error As Budget Cuts Still Advance

EVANSTON, IL — Evanston/Skokie District 65 has corrected a $17 million error in its financial projections, but school leaders said the change does not remove the need for the district's proposed $20 million austerity package.

The error involved projected spending in which capital needs were double-counted, according to District CFO Eric Miller. Interim Superintendent Eric Witherspoon noted that the correction does not change what he described as the district's fundamental need to address a structural deficit through the proposed package.

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Miller said the district still needs the reductions to align recurring revenues with expenditures and stabilize its fund balance, which is currently about 21%. The district's goal is to move its fund balance into a "green zone" of 30% to 50% within three to four years for long-term stability.

According to Miller, the correction lowers projected expenses by $1 million in FY28 and $4 million in FY29, with the adjustment continuing in later years. He said the correction could help the district build its fund balance sooner, maintain higher balances longer and invest more in aging buildings. Miller also said the expected $2 million in Head Start-related savings now shifts to FY29.

Still, the flawed data drew criticism from residents, who questioned the reliability of the district's numbers and called for more collaboration with stakeholders before major decisions are made.

"This confirmed error is larger than the cost of closing two schools over the next five years," parent Alexandra Miller said. "We have to review every aspect of these financial documents before any proposal can be credibly based on these projections. We need the board to exercise its fiduciary duty prior to taking any vote."

Board members said the projection error made independent verification important for rebuilding trust before a final decision. Board member Pat Anderson suggested creating a community finance advisory group to review the district's assumptions and numbers.

According to Miller, the finance committee could define the proposed group's scope, and it could select an independent school-finance reviewer with relevant experience to validate the projections.

Board member Maria Opdycke asked for an outside review before the board takes final action.

"Mistakes can be forgiven, and we move forward. I think the difficulty in this moment is that there is such scrutiny over every single number that we have. So, prior to a final decision, I would like to ask that we have an independent evaluation of our projections to ensure that we don't have any additional errors," Opdycke said.

Other board members also asked for more information before a vote and requested that verified, revised projections be made public before the Nov. 9 meeting. Miller said he would provide the revised report once it is completed and verified.