Lake County Facility Sales Tax Referendum Information

General Overview

What is the County Schools Facilities Sales Tax (CSFT)? 

The CSFT is a countywide funding option created by the Illinois General Assembly that allows voters to approve a sales tax of up to 1% to fund school facility improvements, mental health professionals, and school resource officers. It is intended to provide an alternative revenue stream and reduce the burden of local property taxes.

Why are school districts asking voters now?

This revenue would provide school districts with a sustainable alternative revenue stream to offset at-risk federal funding and underfunded state mandates, relieving pressure to increase local property taxes. School district leaders believe now is the right time to bring this question forward to voters due to financial challenges faced by all schools in the county, including rising costs, aging facilities, and increased safety, security, and support needs for students. On January 15, 2026, District 118 Board of Education took the difficult, but necessary step of unanimously approving a $7 million budget reductions that returned the district to a balanced budget. 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.

How does this tax get placed on the ballot? 

For the proposal to reach voters, school boards representing a majority (more than 50%) of resident student enrollment within Lake County must pass resolutions to place the question on the ballot. It would then be decided by a countywide vote at the regularly scheduled election on November 3, 2026.

How does the proposed one-cent tax for Lake County compare to other counties in Illinois?

If approved, Lake County would join 58 other Illinois counties (102 total) in investing in its schools through a one-cent tax. 

What is the ballot language?

Shall a retailers’ occupation tax and a service occupation tax (commonly referred to as a sales tax) be imposed in The County of Lake, Illinois, at a rate of 1% to be used exclusively for school facility purposes, school resource officers, and mental health professionals?

Taxability and Exemptions

What items are subject to this sales tax? 

The tax applies to most general merchandise currently subject to the state sales tax, including prepared meals (restaurants), electronics, and gasoline.

What items are exempt from the CSFT? 

By law, several categories are not taxed, including:

• Unprepared groceries (i.e. fresh produce)

• Prescriptions and over-the-counter medications

• Licensed vehicles (cars, trucks, boats, RVs, and ATVs)

• Services such as beauty salons

• Farm equipment, parts, and agricultural inputs like seed and fertilizer

What are a few examples of what the one-cent tax would cost on common, qualifying purchases? 

Here are some examples of what the one-cent tax would cost on common, qualifying purchases:

• A coffee at Starbucks $5 = .05 cents

• Laptop at Best Buy $500 = $5

• Fuel at the gas station $60 = .60 cents

• Book purchase on Amazon $9 = .09 cents

• T-shirt at Target $20 = .20 cents

• Bag of apples at the grocery store $5 = No increase

• Medicine = No increase

Do Lake County residents pay the entire tax? 

No. 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. That means a significant share of any CSFT revenue would be generated by non-residents — shoppers, visitors, and commuters — rather than local property taxpayers.

Usage of Funds

How can school districts use the revenue? 

By law, the revenue generated by this one-cent tax must be used for:

• Safety and security infrastructure, including fire prevention and life safety

• Critical facility needs, including:

  • Repairs and maintenance

  • Roof repairs

  • Energy efficiency improvements

  • Land acquisition

  • Architectural planning

  • Durable equipment

  • Demolition

  • Additions, renovations, and new school facilities

• Paying off facility bonds and/or property tax reduction

• School Resource Officers and Mental Health Professionals

What are the prohibited uses for this money? 

CSFT revenue cannot be used for general operating expenses, including:

• Instructional materials like textbooks or movable computers

• School buses

• General salaries for teachers and staff*

• Detached furniture and fixtures

*Recent changes in Illinois CSFT allow schools to use these funds only for salaries/benefits for School Resource Officers and/or Mental Health Professionals

Who decides how each district spends its share? 

All financial decisions regarding the use of these funds are made exclusively by the local elected School Board of Education for each individual district.

Financial Impact and Distribution

How is the money shared among Lake County districts? 

Funds are distributed monthly by the Regional Office of Education based on student enrollment. Each district receives a portion proportional to the number of students who reside in the county and attend a public school, regardless of where that school is located.

How does this tax impact my property taxes? 

It can also be used to fund capital projects on a “pay-as-you-go” basis, avoiding the need for new property tax-funded bonds. Districts can use the revenue to abate existing bond and interest tax levies, which directly reduces property tax bills in that fund. 

What happens if enrollment or the economy changes? 

The revenue is sensitive to economic conditions and can fluctuate based on retail activity. Additionally, because funds are distributed by enrollment, a district’s share may increase or decrease depending on enrollment fluctuations.

How much revenue would this generate annually for school districts?

Based on Illinois Department of Revenue estimates, if a 1% CSFT had been in place in Lake County from November 2024 through October 2025, the total revenue distributed to all 49 Lake County public school districts would have been approximately $121.2 million.

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. 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 76% 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

To date, the District has implemented several phases of the Budget Deficit Reduction Plan to manage the deficit:

• Operational Reductions: $2 million has been cut from the current $80 million operating budget. This includes the creation of an internal transportation Van Division, which reduced out-of-district transportation costs by $300,000 this year.

• 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.

• Included Sales: Funding received through this referendum will be generated through an additional 1% sales tax on qualified sales (restaurants, gasoline, department stores, online purchases, etc.) across all of Lake County 

• Exempt Sales: Sales on services, medicine, groceries, cars, trucks, RVs, boats, farm equipment, etc. are not qualified for the Lake County Facility Sales Tax Referendum and will not be impacted

• Source of Funds: While this tax impacts Lake County residents, an estimated 52% of the Lake County Sales Tax revenue is estimated to be generated by individuals residing outside of Lake County.

• Focused Impact: Funds generated can only be used by school districts to fund facility work along with SRO and Mental Health professionals' salaries

• Fund Distribution: Funds collected to be distributed to Wauconda Community Unit District 118 will be based on the percentage of students our district serves compared to all students across Lake County.