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What is the Lake County School Facility Sales Tax (LCSFT) and how will it impact D118?
In Lake County, school boards representing a majority of resident student enrollment have passed a resolution for the County School Facilities Sales Tax (CSFT) to be placed on the Tuesday, November 3rd General Election countywide ballot for the voters to decide. The Lake County Regional Office of Education has shared a Lake County School Facility Sales Tax website with more information.
The County School Facilities Sales Tax (CSFT) is a local funding option created by the Illinois General Assembly in 2007, which 56% (57 of102) Illinois' counties have approved. If approved by voters, the CSFT provides an alternative source of funding for school facility needs and Student Resource Officer (SRO) and Mental Health professionals' salaries.
CSFT revenue is generated from qualified retail purchases within the county and distributed to public school districts based on student enrollment. Anyone who travels through or visits the county and makes a qualifying retail purchase contributes to the revenue. A December 2025 report from PGAV Planners estimates that at least 52% of retail transactions in Lake County are made by people who live outside the county.
If approved by voters, the CSFT is estimated to generate $121.2 million annually for Lake County public school districts, with an estimated $3.6 million benefitting District 118 annually (per the Illinois Department of Revenue). The funds are not based on property wealth; revenue distribution is based on student population.
This revenue would provide school districts with an alternative revenue stream to offset at-risk federal funding and underfunded state mandates. School district leaders believe now is the right time to bring this question to voters because of financial challenges faced by all schools in the county, including rising costs, aging facilities, and increased safety, security, and support needs for students.
District 118 Facility Maintenance and Budget
District 118 has been focusing on maintenance needs across the district for several years. The district currently has about $24 million of needed facility maintenance to address.
The District 118 Board of Education will consider issuing around $12 million in bonds without raising taxes beyond the Consumer Price Index.
District 118 has an additional $12 million in need that could be addressed through Health Life Safety Bonds that would result in raising taxes.
On January 15, 2026, District 118 Board of Education took the difficult, but necessary step of unanimously approving $7 million in budget reductions that returned the district to a balanced budget. District 118's Budget Deficit Reduction Plan also includes additional cuts to the budget over the next two years to maintain our stable budget ($777k out of the FY28 Budget and $438k out of the FY29 Budget). District 118 celebrates the progress that has been made to balance the budget, and bond revenue will be considered for the maintenance needs across the district.
Lake Counts Facility Sales Tax Referendum Impact on District 118
The CSFT generates an estimated $3.6 million annually, which can be used for maintaining facilities and supporting Student Resource Officer (SRO) and existing Mental Health professionals' salaries.
If Approved: D118 can use these funds for building repairs, School Resource Officers (SROs), and Mental Health professionals. Using sales tax for existing safety and mental health would free up funds from our main operating budget that could be used to restore key cut positions (such as Security Monitors and key teaching staff).
If Not Approved: District 118 currently has $24 million of building repairs that need to be completed. If the District cannot use sales tax to fund these repairs, District 118 would need to consider issuing $12 million in bonds, which would increase local property taxes. Prioritized cut positions could not be restored.
By law, the Board of Education may inform the community about the referendum but cannot take an advocacy position.
To learn more about the School Facilities Sales Tax, visit the Regional Office of Education's Lake County School Facility Sales Tax website
D118 Budget Facts
D118's Balanced Budget and Needs
On January 15, 2026, the District 118 Board of Education took the difficult, but necessary step of unanimously approving the Budget Deficit Reduction Plan that will return our district to a sound financial footing. Considering the 2025-26 and 2026-27 budgets, District 118 cut $7 million out of our $80 million budget, half of which was generated by changes to operations. The other half impacted personnel. District 118's Budget Deficit Reduction Plan also includes additional cuts to the budget over the next two years to maintain our stable budget ($777k out of the FY28 Budget and $438k out of the FY29 Budget). We have committed to continuing all course offerings, core and elective programs, athletics, activities, and required supports for students with IEPs and English Learners.
In addition, District 118 has significant facility maintenance needs that require continued facility spending. The estimated $3.6 million of additional revenue would assist in protecting our investments in our schools and allow for the restoration of key positions, such as the Supervisor of Safety and Security.
Important D118 Financial and Facility Facts
Adequacy Targets: According to the Illinois Evidence-Based Funding (EBF) model, District 118 is currently funded at 73% of adequacy, which is below the 100% level the state defines as appropriate funding.
State Reimbursement: The State of Illinois currently prorates (partially funds) "Categorical" reimbursements, such as out-of-district transportation. This creates a gap between the actual cost of mandated services and the revenue received from the state. Reductions in anticipated state funding were a major driver in the recent budget deficit.
Protecting Our Investment: District 118 has over $24 million in facility maintenance needs and can address $12 million of those needs without raising property taxes beyond the tax-capped level. (Link to pictures of the needs in a one-page summary)
Current Financial Status and Reductions
Overall, a total of about $7 million has been cut from District 118's approximately $80 million operating budget last year and this year. To date, the District has implemented several phases of the Budget Deficit Reduction Plan to manage the deficit:
Operational Reductions: Nearly $3.5 million in operational expenses has been cut.
Administrative Reductions: The district has eliminated the Supervisor of Safety and Security position and several other administrative and non-union leadership roles. Essential duties from these roles have been redistributed to remaining staff.
Staffing and Programs: Approximately 75% of the district's operating budget is allocated to salaries and benefits. Consequently, half of the $7 million reduction included responding to declining enrollments and the elimination of positions that impact class sizes, intervention services, and the middle school band program.
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