District 196 Approved an $825 Million Budget & Here's What's Actually In It
TLDR
The board approved next year's preliminary budget: about $825 million in revenue.
Most of it comes from the state.
About $100 million comes from the next round of school construction bonds.
This is not a new tax hike — it runs on money already approved.
At the June 22 meeting, the District 196 school board approved the preliminary budget for the 2026-27 school year. The headline number is big — about $825 million — but the story is simpler than it sounds. Here's the breakdown.
Where the Money Comes From
Of that $825 million in revenue:
About $410 million is state aid (the biggest single source).
About $170 million comes from local property tax levies.
About $100 million is the next chunk of building bonds, with that bond sale slated for spring 2027.
The rest comes from federal funds, fees, and other sources. The general fund — the everyday money that pays teachers, staff, and classrooms — makes up about two-thirds of the budget.
Why Spending Is Higher Than Revenue This Year
Here's the part that can look scary but isn't. The district is in the middle of a huge construction program (new activity centers, a new middle school, and more), so this year it's spending down its savings to pay for buildings. The budget draws down the district's fund balance by about $83 million, almost all of it construction. Even after that, the district expects to end the year with roughly $313 million in reserves.
In plain terms: they saved up bond money, and now they're spending it on the buildings voters approved. Next year is expected to be the biggest construction year since the program started in 2023.
Does This Raise My Taxes?
No new tax hike came out of this vote. The property tax piece was set earlier — we covered the 12.8% levy increase for 2026 here. This budget vote just puts the spending plan in place for the year. The board will come back in December and January with the final, updated version.
A lot of that construction money is going toward projects you can actually see going up around town. Here's our full activity center construction update. And if you want a sense of where the district puts its priorities, it recently made personal finance a required class.
The Bottom Line
The $825 million number is real, but it's mostly state aid plus construction money that was already approved. Nothing in this vote raises your taxes on its own. The final budget comes back to the board this winter, so there's still a chance to see the updated numbers. You can find the district's public finance documents on the district website.
FAQ
Wait, $825 million? Really? Yes, but that's the whole district, with about 29,000 students. Most of it is state aid plus money for buildings that voters already approved.
Is this why my property taxes went up? The tax increase was set in a separate levy vote earlier. This budget runs on money that's already committed.
Why is the district spending more than it takes in? Because it's spending saved-up bond money on construction this year. That's planned, not a deficit in the usual sense.
What's the district building? New activity-center gyms, a new Rosemount Middle School, and other projects from the voter-approved bond program.
When is the budget final? The board returns with the final budget in December and January.
