Sycamore school board to talk 2026 budget amid ISBE ‘early warning’ financial standing

It’s been about a year since Sycamore School District 427 was placed on a financial early warning status by the Illinois State Board of Education, and school board members will take a look at how the 2026 budget is shaping up during a special meeting Wednesday.

The IBSE ranking, released in fall 2024, is based on the district’s 2023 financial data, according to state board documents.

Financial early warning status, the second-to-worst status that could be given to Illinois school districts by the Illinois State Board of Education in its 2024 School District Financial Profile Report, means District 427 is among the bottom 2.23% of Illinois school districts when ranked based on finances.

Sycamore school board president Michael DeVito called that fact “highly concerning” when asked about the district’s financial situation on Tuesday.

The Sycamore school board will hold a meeting at 7 p.m. Wednesday inside the district’s new Adminstration Center, 1947 Bethany Road.

In the most recent annual financial profile report, more than 89% of the state’s 851 school districts were placed into the top category, called “financial recognition.” And 8.23% of the districts fell into the second-best category. Including Sycamore, 12 school districts, 1.41% of the state’s total, were given financial early warning designations. Seven school districts, 0.82%, were given a financial watch designation by the ISBE, which is worse than the financial warning designation.

The ISBE used five weighted financial indicators from the 2023 financial data to place every school district in the state into those four categories. ISBE ranks a district’s funds and overall revenue at 35% in the district’s overall scores. A district’s short and long-term debt ability to take on debt, and how much cash is on hand, accounts for 10% of its score.

Sycamore school board member and district Business Services Committee chair Cole Regnery said he takes the early warning designation seriously.

“Like any warning, it also provides an opportunity to focus on our long-term stability and ensure our planning remains strong,” Regnery wrote as part of a provided statement to Shaw Local News Network.

School board member Alex Grados declined comment, directing questions to DeVito.

“A 24% fund balance means we have enough in reserves to cover roughly one-quarter of our annual operating expenses,” DeVito said. “Keeping at our [SIC] above 25% ensures that we can pay bills and payroll between revenue deposits.”

In a memorandum sent to district officials, assistant superintendent Nicole Stuckert wrote that the tentative budget she’s proposing for 2026 projects the district to end the year with about a 23.8% fund balance.

She wrote that fund balance reserves remain adequate to avoid a deficit reduction plan.

“[The] ISBE requires a district to develop a deficit reduction plan if the operating funds [education, operations and maintenance, transportation and working cash] fund balance reserves are predicted to be more than three times the deficit,” Stuckert wrote. “At this time, Sycamore will not be required to file a plan with the state for this fiscal year.”

Stuckert’s memo to school board members indicates that the fiscal 2026 budget drafts show a decrease $788,589 in a fund balance.

DeVito said the special board meeting on Wednesday is planned so the board can review a tentative budget with enough time to satisfy the 30-day public hearing requirements ahead of the board’s Sept. 23 meeting, where he hopes a final budget will be set.

Acting Superintendent Reineck and Stuckert were asked to comment Tuesday, but Reineck said they were busy preparing for Wednesday’s school board meeting and other administrative tasks ahead of Tuesday night’s Back 2 School Bash.

The district is operating with one less administrator than usual while heading into the start of the school year. On Aug. 1, DeVito and five other school board members approved a mutual separation agreement with former Superintendent Steve Wilder. Details on the decision have been sparse.

DeVito’s comments Tuesday did not address Wilder’s exit.

“Certain details of past personnel matters – including the recent separation – are legally confidential under Illinois law and Board policy and are also subject to mutual commitments between the parties," DeVito wrote. “This is compliance with the law and respect for the individuals involved. We will not comment further on past personnel specifics.”

DeVito said he believes Reineck and Stuckert are capable of navigating the district toward a more stable financial standing.

“I believe our current administrative team is able to handle this problem and has produced a budget reflective of the board’s priorities to not fall further in financial status,” Devito said.