What percentage of the District’s budget comes from local, state and federal sources? How has this changed from last year?

In FY’04 the District will have a balanced operating budget. Total operating revenues are projected to be $26,453,472 with operating expenditures of $26,279,639, leaving a $173,833 operating surplus. The operating surplus will assist in removing the District from ISBE’s early financial watch list by FY’05. However, total revenue is projected to be $28,008,230 with total expenditures of $28,950,836 with a total deficit of $942,606. This is due to legally mandated life-safety construction projects in the budget. The District will use reserves to fund these construction projects. The District’s revenue is projected to be $28,008,230, which is made up of 49% local, 39% state, and 12% federal sources. The most significant change from last year is the $609,950 increase in General State Aid. However, there was a loss in Hold Harmless of $283,519, making the net increase of GSA $326,431. Corporate Personal Property Replacement Tax (CPPRT) revenue decreased by $90,810. In the last four fiscal years the District has lost $878,358 in CPPRT revenue. In order to have a balanced operating budget, the District reduced budgeted expenditures by $1,134,278 in FY’04. The continuing impact of declining revenue, legislative actions, and the Property Tax Extension Limitation Law (PTELL) are going to effect the District’s educational programs.

What are the District’s tax base, tax extension and rate? And, what does this mean for the $100,000 homeowner? And how has this changed from last year?

The District’s tax base grew $18.7M, or 5%, to $378M. The District’s tax rate decreased $.10 to $2.64 per $100. The $100,000 homeowner will pay approximately $880, which is $33 less than last year. The 2002 tax extension, which will be received in FY’04, utilized a 1.6% Consumer Price Index (CPI). The 2003 tax extension, which will be received in FY’05, will utilize a 2.4% CPI. Legally, under PTELL the District is entitled to the rate of inflation or 5% whichever is less plus new construction as additional tax revenue for the next year. In the FY’03 budget $878,587 was allocated from operating funds to offset abatement action taken by the Board in the December 2001 levy. In FY’04 these funds will be applied to offset salaries and benefits cost increases in the District’s contract with the EAP.

What is the District’s bonded indebtedness? Does the District have any other debt? When is the bonded indebtedness scheduled to eliminated?

The District had one life safety bond remaining in FY’03 to which the District paid out $1.4M to bondholders, eliminating the District’s bond debt in December 2002. The District also issued a $2.5M life safety bond in December 2002 to address the 2002 life safety resurvey. The life safety bond will fall off in December 2013. Other debts include lease purchase agreements for copiers with IKON Office Solutions: 5yrs - $243,829; IBM AS/400: 2yrs - $118,659; phone system with Great American Leasing: 1yr - $163,666; and computer buy with CalFirst: 1yr - $27,474.

What are the district’s balances? Will the budget be a surplus or deficit budget? If deficit, how much of it is due to the spending of reserves and are these one-time only or recurring?

The District’s combined funds show a projected fund balance of $4,543,206 on June 30, 2004. The District has projected an overall balanced operating budget for FY’04. Total operating revenues are projected to be $26,453,472 with operating expenditures of $26,279,639, leaving a $173,833 operating surplus. In FY’03 a target of the BOE, EAP, and Administration was to develop a long-range financial plan to address the continuing impact of declining enrollment, legislative actions, and the property tax extension limitation law. The District will continue to implement the long-range financial plan and reduce things before people in FY’04.

How much does it cost to educate ( per pupil expenditure) a child? What is the tuition charge?

It is projected to cost $6,660 to educate a student in the District during the 2003-2004 school year, up $242 from last year. Out-of-District students are projected to pay $5,600, up $237 from last year to attend the District’s schools. Out-of-District tuition is determined by ISBE based on prior year expenditures.

What percentage of the District’s resources is spent on Education, Operations and the like? Where does the money go? And how is it spent?

Nearly 79% of the budget is expended from the Education fund, with 7% spent on buildings and maintenance, 1% on bond/interest, 5% on transportation, 1% on retirement, 2% on site & construction and the remaining 5% on life safety. Of the $28.9M expenditures, $14M is spent on instruction, $11.6M on support services, $305K on bonds, $1M on community and in/out-of-district special education tuition charges, and $2M on construction/life safety. Salaries and benefits make up 65% of the budget, followed by purchased services at 17%, supplies & materials at 6%, capital outlay at 8%, other objects at 1%, and 3% for tuition.

How much of the District’s budget is derived from grant or other offsetting revenue?

Of the $28.9M in budget expenditures, $3.2M, or 12%, which is up $145,117 from last year, comes from grant sources or other contributions. Grant sources remain available, especially competitive grants, and District staff are encouraged to pursue them.

Why does the District have a working cash fund? What is it used for? When can it be abolished? Where could the proceeds go?

The District maintains a working cash fund so it does not have to do any short-term, external borrowing, saving the District valuable dollars in interest which can be better spent on programs. The moneys are used to offset temporary cash deficits in any fund and to generate interest income. Generally, abolishment of the working cash fund occurs when both the life of the bonds establishing the fund have expired and the amount is at least equal to the debt being offset for which the fund was created. If abolished, funds may be transferred into the Education Fund and then should only be used for one-time only expenditures or the establishment of reserves. In FY’03, the working cash fund was partially abolished for $858,500 to pay for the Washington window replacement project and deal with the operating deficit. No working cash loans or partial abolishments are anticipated in the FY’04 budget. However, potential proration and/or delayed state and federal payments due to the economy may necessitate the borrowing of or use of District reserves.

What is the average salary for teachers, administrators, and support staff? How has it changed from last year?

As part of the reduction of the District’s budget in FY’04 several teacher and administrative positions were eliminated. The teacher reductions were made through attrition. Contractually the District is required to increase teacher salaries by 5.3%. The average teacher’s salary (273) in the District is projected to be $45,790 up $2,001 or 4.6% from last year. Administrative salaries (22) are projected to average $81,164 a decrease of $4,956 or 5.7% due to retirements and a position reduction. Support staff salaries (105) are projected to average $15,658, a decrease of $643 or 3.9% due to attrition. In 2002, the BOE and EAP ratified a five-year contact. The contract gives the following increases in salary: FY’03 2.5%, FY’04 5.3%, FY’05 4%, FY’06 4.5%, and FY’07 4%. This averages out to a 4.06% increase each year of the contract. District administrators receive the same increase.

What’s the total budget and how has it changed from last year? What accounts for the change? Are these new initiatives?

The District’s overall total budget will have a deficit. Budget reductions of $1,134,278 were made last year to have a balanced operating budget. These included: Salaries and Benefits $402,072, Purchased Services $183,016, Supplies & Materials $230,047, Equipment $199,126, Dues/Fees $7,300, and Tuition $112,717. Of these reductions $732,206 were “things” and $402,072 were “people” and $875,578 will be permanent reductions and $258,700 will be temporary reductions. With attrition savings of $250,749, the grand total is $1,385,027. Total budgeted revenue of $28,008,230 is up $1.2M from last year due to increases in the levy, state and federal aid, and carry over revenue delayed from last year. Total expenditures of $28,950,836 are up $1.1M from last year primarily due to life-safety construction projects in the budget. The District will use reserves to fund these construction projects. The FY’04 fund balance is projected to be $4,543,206. In FY’04 the District will have a balanced operating budget. Total operating revenues are projected to be $26,453,472 with operating expenditures of $26,279,639, leaving a $173,833 operating surplus. This operating surplus will assist in removing the District from ISBE’s early financial watch list by FY’05. The District intends to continue implementing the long-range financial plan to ensure a balanced budget in future years.

What are the major capital projects of the District and how much will be spent? How does this compare? Where is the District on the 5-Year Facility Plan?

The District has recently completed $1,335,095 of mandated life safety construction projects over the 2003 summer. These include the renovation of the East Side of the Preschool Family Education Center (PFEC) $488,289; Jefferson & Broadmoor/Dirksen lighting upgrade project $96,296; District wide priority A (emergency and exit lighting) $325,879; District wide playground and parking lot resurfacing $374,631; and District wide aluminum entrance and vestibule door retrofit $50,000. In FY’04 the District will be focusing on the facilities and the life safety projects. Based on the results of the 2002 life safety re-survey, mandatory future District construction projects totaled $6,893,275. The District began working on these projects in March 2003. The projects will be completed over the next five to eight years depending on funding. The District has a five-year facilities and life safety plan to address these mandated construction projects.