Proposed District 65 Budget Grows, Balanced By Referendum

EVANSTON, IL — Last year's $14.5 million referendum has put Evanston schools in much stronger financial position, according to district administrators. The Evanston/Skokie School District 65 Board of Education's finance committee Monday considers the district's tentative budget for the coming school year. The Fiscal Year 2019 budget anticipates $139.3 million in revenue and $135.8 million in spending.

Administrators propose a 7 percent increase in expenditures along with a 5 percent decrease in revenues compared to the unaudited actual financial reports from last year. Enrollment will increase by 66 students to 7,548, less than 1 percent, with 13 percent of new students in English language learner programs, according to the district.

In a message accompanying the budget, Superintendent Paul Goren said the district's fund balance was above 30 percent for the first time in decades.

"Despite many uncertainties on state and federal fronts, the district is hoping to preserve referendum reserves, which will allow the district to stay deficit free through fiscal year 2024-25," Goren said. "We are hoping, however, to stretch the referendum funding well beyond that year."

In order to avoid expenditures outpacing revenues in three years – District 65's "structural deficit" – administrators said the district needs to save money in negotiations with employees expiring over the next two years, as well as rebidding contracts for services and getting better deals for vendors and utilities.

The budget includes a 5 percent increase in salaries and staffing levels, a 1 percent increase in benefits and an increase of $3.9 million in non-personnel spending, including instructional technology and textbooks, special education tuition payments and capital expenditures, according to a summary of the budget.

Revenue were expected to decrease by $7.2 million. However, the district said the reduction was due to the way funding from the April 2017 referendum was distributed – all in the Fiscal Year 2018 budget year. Other local revenues were down by 10 percent, although they included a $141,758 payment in lieu of taxes from Northwestern University.

The district pointed to several reductions and efficiencies totaling more than $685,000 this year and $2.8 million over the next five years, including renegotiated medical insurance, security system contracts and reducing overtime.

State law requires all public school districts to display the tentative budget on public display prior to a public hearing. Notice of a hearing will be published Aug. 23, following the board's Aug. 20 regular meeting. There will be community budget presentations Sept. 3 to 5, according to district's budget calendar. A public hearing and budget adoption have been scheduled for Sept. 24.

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