Huge cuts in U-46, and more may be needed, official says

To address a mounting deficit, Elgin Area School District U-46 plans to make $40 million in cuts - roughly 10 percent of its budget - next school year.

And even that staggering number may not be enough.

"The picture is gloomy, financially," Chief Financial Officer Ron Ally told the board.

Accompanying a presentation by outside financial consultant PMA Financial Network Inc., Ally briefed the board on where the district stands - and how it needs to spend to avoid digging itself into a deeper hole.

The new cuts will whittle down the previous years' deficit of $48.6 million with $25 million in cuts; the remaining $15 million in cuts will help balance next year's budget.

Ally did not specify which departments and programs are most likely to see cuts. The district's Budget Advisory Task Force, which has been reviewing hundreds of options, will unveil their suggestions in February.

Yet, whatever those may be, it's inevitable students will be affected.

"At some point, I can't imagine getting into $40 million in reductions without (impacting students)," Ally said. "That may be through class sizes, less electives available, those types of things. Again, we want to provide the best academic environment that we can. It's going to be difficult, and we know that."

After $4.9 million in reductions were made earlier this year, the district now has a $48.6 budget deficit - the result of a shortage of state categorical, federal and property tax revenue, compounded by increases in salary and benefit costs.

PMA has projected that without further cuts, the deficit could rise to $63.6 million.

Ally deemed that projection very conservative because it assumes stable state revenue and no employee raises. The state is $19 million behind in payments to U-46.

Several contracts, including the 2,400-member Elgin Teachers Association's, will expire in the coming months. Approximately 80 percent of the district's costs are employee salaries and benefits.

To illustrate the district is not alone in its budget problems, Ally repeatedly referenced recent news articles about surrounding districts' deficits - including Maine Township High School District 207 and Cary Community Consolidated School District 26. He also divided U-46's proposed cuts by its 41,000 students, which amounts to a $989 reduction per pupil.

District 207, which plans $15 million in cuts next school year to address a projected $19 million deficit, will see a $2,485-per-student reduction, Ally said. Cary District 26, which aims to cut $5.4 million, will see a $1,610-per-student reduction.

Board members Amy Kerber and Maria Bidelman expressed concern that the $40 million in cuts might be too aggressive and have an unnecessary impact on classroom instruction.

"You can see the deficit's building very quickly," Ally responded. "... My fear is that if we don't address it, we will not get out of the crisis anytime soon. We will just be delaying it. Much of it is outside of control. One thing we can control is to live within our means."