ADMINISTRATION PROPOSES $2.9M IN BUDGET REDUCTIONS; prepares for state cuts
District 41 is in sound financial shape, but must adjust to the current realities of stagnating revenues, rising costs, and unstable state education funding. The Board of Education (BOE) reviewed a financial reduction plan that will help the District keep focused on educational priorities and maintain financial stability during difficult economic times. Superintendent Dr. Ann Riebock and Assistant Superintendent of Finance, Facilities and Operations Bob Ciserella outlined approximately $2.9M in proposed reductions for Fiscal Year 2010-2011; these reductions are expected to keep the District in the black until 2013-2014. Further reductions and efficiencies will be developed to maintain a balanced budget beyond that date. Most of the savings come from personnel reductions (mainly not filling positions that will be open due to retirement or resignation); scaling back or delaying capital projects; and setting aside less money for contingencies.
The current plan builds on the more than $1 million in reductions that were shared with the BOE in November. Dr. Riebock stressed that these decisions are being made in light of the District's Vision, Mission and Values, and its Long-Range Plan.
Most of the District's money comes from property taxes--for next year, these revenues will be virtually flat due to the 0.1% Consumer Price Index; unless reductions are made, the District's expenses will rise about 5%. Also, the state of Illinois is in a budget crisis; under normal circumstances, the district would receive $3.6M from the state next year, but is expecting to receive significantly less, if anything. (At this point, the state owes District 41 more than $700,000 for FY 2009-2010.)
District 41 receives 87% of its money from local property taxes, and 8% of its money from the state in the form of general state aid, and grants intended for specific programs like Special Education, Bilingual, or Pre-Kindergarten at Risk. The District's reduction plan includes several scenarios from full state funding to no state funding. The District expects no reductions to the 2% it receives in Federal funds. Dr. Riebock said that the proposed reductions will allow the District to maintain programming even if the state cut half or even more of its funds to the district. If the state eliminates education funding, she said the administration would probably request BOE permission to use reserves to preserve programs for one year, in the hopes that state funding will be restored, rather than dismantle programs that are meeting important learning needs.
Click here for the complete budget reduction proposal, and click here for a summary. Questions and comments about finances may be emailed to finances@d41.org. You will receive a reply, usually within 24 hours.
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