Prairie Grove CSD 46 faces a $2.6 million annual budget gap, and the Board of Education wants to hear from the community before it makes any decisions. A short community survey is open now through October 19. It takes about three minutes.
How we got here
2021: The district pays off its 2013 bonds and issues $11 million for Facility Plan Phase 1
2022: An additional $13 million in alternative revenue bonds are issued for Facility Plan Phase 2
2023: Budget projects a $300,000 operating deficit
2024: The Board of Education votes to levy below the maximum allowed by Illinois law, effectively losing $500,000 annually in unlevied taxes
2025: Spending continues to increase for operations while also transferring operating funds to pay for debt service; the deficit grows.
February 2026: District hires interim superintendent and business manager who audit operations and finances.
April: The interim business manager presents the scope of the deficit to the board and takes action to reduce expenditures for the 2026-2027 school year.
June-July: A 16-member Financial Planning Task Force of parents, staff, and residents reviews the district's finances and builds recommendations
August-September: Superintendent Dr. Vicki Larson presented the Board with vetted options to close the budget gap.
Now through October 19: The community survey is open.
Next: The Board will review survey results as it weighs the options and sets the path forward.
Why the gap is hard to close
Local property taxes provide 90% of the district's Educational Fund revenue. Salaries and benefits make up 78.5% of its spending. That means any path forward involves either new local revenue, reductions that reach staff and programs, or a combination of both.
The four options
Tax rate increase | Est. annual cost, $300K home | Budget cuts required | |
Option A | None | $0 | $2.6M (17%) |
Option B | $0.30 | ~$276 | $1.4M (9%) |
Option C | $0.59 | ~$542 | $750K (5%) |
Option D | $0.64 | ~$589 | $500K (3%) |
Deeper cuts mean larger class sizes and fewer co-curricular, after-school, and support services. Option D would bring staffing in line with recommended levels from the Illinois State Board of Education rather than cutting current programs.
The district is also exploring land sales, fees, and space rentals, but those steps alone cannot balance the budget.
How We Prevent A Future Deficit
This budget deficit did not happen overnight. Consistent decisions over years led to it. To prevent this from happening again, the district must be held accountable by its elected Board of Education and provide transparent, open communication to the wider community. District 46 has new board and district leadership in place, ready to follow through on these commitments.
Separation of the superintendent and business manager roles
Monthly budget reports at public Board of Education meetings with encouraged discussion
Open and transparent community communication (updated website with more access to information, monthly emails following board meetings and quarterly mailings to all residents)
Committee oversight through the Financial Planning Task Force and (coming soon) a capital committee to review facility projects and capital investments.
Your Voice Matters
Please take a few minutes to take the survey below and share your thoughts on the path forward for District 46. Our schools belong to our community, and your voice will make a difference as the Board of Education makes its decisions.