District 202 Could End School Year with $5.9M Operating Surplus

PLAINFIELD, IL — District 202 could end the 2016-17 fiscal year with a $5.9 million operating surplus, which is about $3.7 million more than originally anticipated last month based on updated state budget information.

The Plainfield District 202 Board of Education at its Aug. 22, 2016 regular meeting approved posting the tentative 2016-17 budget on public display for 30 days as required by law on the District 202 web site (www.psd202.org) under both “Announcements” and “News.”

The Board plans to hold a public hearing on the proposed tentative budget at 6:30 p.m. Monday, Sept. 26, 2016 and vote on the document at its regular meeting that same night.

OPERATING BUDGET DETAILS

In July, district administrators gave the Board of Education a preliminary budget report showing proposed 2016-17 operating revenues exceeding anticipated operating expenses by $2,249,156.

The “Operating Budget” comprises the Education, Operations and Maintenance, Transportation, IMRF/Social Security, Working Cash and Tort funds. These funds pay for all daily operational costs including salaries and benefits, which comprise about 78 percent of the total operating budget.

The total proposed 2016-17 budget including debt service and construction costs shows $292.2 million in revenues versus $290.7 million in expenses, creating a surplus of $1.5 million.

The preliminary operating budget revenue released in July was partly based on the district prorating state funding at 85 percent of reimbursable expenses for the third consecutive year to hedge against the state cutting funding later.

“Prorating” is the practice of budgeting general state aid at less than what the state actually owes local school districts or even what is telling districts to expect just in case the state once again reduces funding.

However, administration are now prorating state funding at 89 percent of general state aid. The state is supposedly planning to provide 100 percent of general state aid funding. However, Illinois still does not have a budget after nearly two years.

“We are confident enough in the state to make this slight adjustment, but of course we must still be cautious about planning for anything more than this,” said Assistant Superintendent of Business Operations Richard Engstrom.

District officials now expect to receive $258.4.6 million in operating fund revenues, down about $17.2 million from the 2015-16 (unaudited) budget, which showed $275.6 million in revenues.

The difference is due to the state funding about 92 percent of general state aid last year when District 202 prorated for 85 percent; and the proceeds of a $12 million bond issue to fund capital projects and provide for cash flow.

The proposed 2016-17 operating budget shows $252.5 million in operating expenses. That’s up about $9.6 million or about 4 percent over the 2015-16 (unaudited) budget, which included about $242.9 million in expenses.

The proposed 2016-17 operating budget essentially maintains staffing, service and building budgets at current levels.

It does not include funding for any major new initiatives, programs or capital expenses except for the installation of artificial turf at Plainfield High School – Central Campus and Plainfield South High School. Artificial turf will also be installed at Plainfield North and East high schools next summer.

Salaries are expected to increase by .7 percent to 2.9 percent for teachers and 2.5 percent for administration and non-union support staff.

Contract negotiations continue with the Plainfield Association of Support Staff (PASS). However, the proposed tentative budget includes sufficient funds for an expected salary increase for employees covered by the PASS agreement.

The proposed tentative budget also includes a $1 million contingency for building-specific enrollment changes and special education needs, as has been done the last several years. It also reflects a 3.5 percent increase in health care costs.

District 202 endured four years of fiscal austerity and significant budget cuts made to counter the ongoing effects of a weakened economy and 10 years of unprecedented growth.

From 2009-2012, District 202 cut about $42 million in operating expenses, mostly by eliminating about 345 full-time teaching, support staff and administrative positions.

Submitted by Plainfield School District 202. Photo courtesy of PSD 202.