Steve Schultz, the countys chief financial officer, told the Winnebago County Board during a committee-of-the-whole budget presentation that the county is budgeting a combined $13.8 million deficit for fiscal 2026 for the general fund and the public safety sales tax fund and that the number includes about $16.6 million of capital projects.

Schultz said the current fiscal year performed better than expected: "instead of that $13,300,000 deficit, the projected actuals for the general fund plus the public safety sales tax is 7,800,000," a reduction he attributed to stronger sales and state income tax receipts, staffing attrition and conservative department spending.

The nut of the budget is capital spending. Schultz said the PSB project is midstream and that the county has drawn down reserves, including prior ARP transfers, to fund work in FY26. "Included in that $13,800,000 is 16,600,000 of capital projects," he said. He also said $5.6 million of the capital amount relates to the PSB this fiscal year and that the board previously placed more than $10 million of ARP money toward the PSB.

Schultz said the county will continue a long-term capital allocation, increasing a planned transfer to that account from $5.6 million this year to $6.0 million for FY26, to provide runway as fund balances decline. He also reported a decline in annual bond payments compared with prior budgets: "this budget reflects more than $3,000,000 less in bond payments than we had in the fiscal year 25 budget," which he said improves flexibility.

Board members asked for clarification about the levy increase related to River Bluff and other items. Schultz said the total levy increase is "just shy of $1,700,000," composed of a $1.5 million allocation for River Bluff carried forward from two years prior plus growth-related levy authority, and said some levy reallocations offset other line items. He also confirmed the $1.5 million for River Bluff comes from the advisory referendum approved by voters and that the county did not raise the levy for two years after that approval.

Board members discussed River Bluffs finances during the presentation. Mr. Webster, a board member, commented that River Bluff has stabilized financially over recent years. Mr. Penny, a board member, praised staff for services provided at River Bluff and emphasized concern for residents there.

Schultz said budget layover procedures will follow the countys schedule in September with a three-week layover between the initial presentation and the final vote. He urged board members to review the detailed budget book, which includes a five-year capital request list from departments. "There will be some minor amendments between tonight and the layover and between the layover and the final approval," he said.

This presentation was informational; no formal budget vote occurred at the meeting. The board will consider amendments during the scheduled September layover and set final budget votes at later September meetings.