$9M Budget Deficit Could Shrink: District 202

PLAINFIELD, IL — It appears now that District 202 could end the 2017-18 school year with an operating deficit of about $9 million because of escalating costs and declining revenues, but the numbers could change significantly depending on state funding.

At his point, the district plans to use budget reserves to offset the deficit, but officials caution that the Legislature is still debating a new funding model that could add $5.8 million to $7.9 million to the district’s bottom line.

The Plainfield District 202 Board of Education approved the 2017-18 budget at its August 21, 2017 regular meeting following a public hearing as required by law.

District 202’s total 2017-18 budget, including debt service and capital projects is $302 million, up from $290.7 million last year. Total revenues are expected to be $286.5 million in 2017-18, down from $292.2 million last fiscal year.

Of that figure, the 2017-18 District 202 Operating Budget shows $252,294,055 in expected expenses and anticipated revenues of $243,027,868, resulting in a $9.3 million projected operating budget deficit.

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

The State of Illinois defines the “Operating Budget” as the Education, Operations and Maintenance, Transportation and Working Cash funds for purposes of assessing and rating school districts’ financial health.

STATE ISSUES LINGER
However, the General Assembly is still negotiating the final version of “Senate Bill 1.” SB1 includes a new funding mechanism based on 27 points reflecting local school districts’ economic needs, socioeconomics and demographics.

Gov. Bruce Rauner recently vetoed portions of SB1, claiming the bill unfairly favors Chicago over other needy districts.

The original version of SB1 would have yielded about $5.8 million more each year in state funding to District 202. Rauner’s amended version would give District 202 about $7.9 million more annually. However, critics have said that Rauner’s version of SB1 would be less equitable and less stable over time, leading to lower education funding.

Submitted by District 202