District 202 Proposed Operating Budget Ahead By $7.6M

PLAINFIELD, IL — District 202 has announced that its proposed operating budget is expected be ahead by around $7.6 million, or three percent. Officials said the new state funding formula has helped the district's revenues outpace its expenses. The district's Board of Education received the proposed 2018-19 budget at its June 25 meeting.

Rick Engstrom, assistant superintendent for business and operations, said the proposed budget will allow the district to maintain high-quality educational programs while continuing to develop and implement a "responsible, sustainable financial plan." He said the proposed fiscal plan will keep property taxes "as low as possible," and maintain the district's "Recognition" status — the highest ranking on the State Board of Education’s Financial Profile. District 202 received the status in 2016 and 2017, and Engstrom said he expects to earn the status again this year.

At the June 25 meeting, the board approved putting the budget on 30-day public display, as required by law.

The board plans to hold a public hearing on the proposed budget at 6:30 p.m. on Monday, August 20, and vote on the new fiscal plan at its regular meeting that same night. The board meeting will be held at the District 202 Administrative Center at 15732 Howard Street.

PROJECTED REVENUES AND EXPENSES

The proposed 2018-19 operating budget shows $283.5 million in anticipated revenues, up from $253.6 million last year. The $30 million increase resulted from the district under-budgeting anticipated revenues last year because of state funding issues in recent years.

The proposed budget shows $275.9 million in expected expenses, up from $264.2 million last year.

The budget pays for all daily operating expenses, including salaries and benefits, which comprise about 79 percent of the budget.

The state considers the Education, Operations and Maintenance, Transportation, Working Cash, IMRF and Tort funds together as the “Operating Budget” to assess and rate school districts’ financial health.

District 202's projected budget — including debt service and capital projects — is $311.6 million, up from $302 million last year, or 3.2 percent. Total revenues are expected to be $313.6 million, up from $286.5 last year, or 9.5 percent.

STATE FUNDING

The state approved a new “evidence-based” funding system last year that sends more money to districts with greater fiscal need. Under the new system, District 202’s state funding is expected to increase over last year after years of declining and unreliable state support that required the district to significantly cut staff and reduce operating expenses from 2009-2012 to save about $45 million. For the first time in several years, the district does not plan to “prorate” any state funds, district officials said. Prorating is the practice of budgeting for less state revenue than what the district is due.

KEY BUDGET POINTS

• Projected operating expenses are up about $11.7 million, or about four percent over 2017-18 expenses.
• Most of the increase is due to salaries and benefits which comprise about 79 percent of the operating budget — about $215.8 million, which is up about 1.3 percent, or $25.5 million, over the 2017-18 adopted budget for salaries and benefits.
• The proposed budget includes 2.5 percent raises for administration and non-union support staff plus an additional amount of between .5 percent and 1.5 percent based on the Consumer Price Index.
• Certified staff raises are budgeted at an average of 2.75 percent plus a .5 percent increase to base pay, per the contract with the Association of Plainfield Teachers.
• Support staff raises are budgeted at 2.25 percent, per the contract with the Plainfield Association of Support Staff.
• The proposed budget essentially maintains staffing, service and building budgets at current levels, but includes funds to hire 16 paraprofessionals. It does not include funding for any major new initiatives, programs or capital expenses.
• 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 2 percent increase in health care costs.

Image via Plainfield District 202