Dist. 200 OKs short-term borrowing

Wheaton Warrenville Unit District 200 Superintendent Brian Harris said the district must keep short-term borrowing as an option if it hopes to make payroll and as it continues to wait for millions of dollars in state aid. At a board meeting Wednesday, the board gave the school district the authority to borrow quickly using tax-anticipation warrants, which borrow against anticipated tax revenue.

Thus far this fiscal year, the district has received just $48,000 of an expected $8 million of categorical payments from the state.

“That is the urgency for this,” Harris said. “We need to be able to make payroll. We will issue the warrants only up until we need them, and we will keep watching our cash flow.”

The board approved up to $12 million in short-term borrowing. The additional balance will help offset low fund balances and uncertain federal grant money.

“Our state funding has been highly inconsistent, just as other school districts,” Harris said.

“I’m not very optimistic, and we have to continue to prepare accordingly,” he added.

Assistant Superintendent of Business Operations Bill Farley said the warrants would not be issued until April, if at all, but that it would take a “Quinn miracle” to avoid using the short-term loans. He said low interest rates make short-term borrowing on future revenue the best way to go.

“We’re still watching and waiting,” he said.

Despite the waiting game, Harris noted that the district is in better shape than others because such a large portion of its revenue comes from local property taxes.

Farley said about 18 percent of the school’s budget comes from the state. As they wait for state funding, the school board also began addressing what is expected to be a $1 million budget deficit in the next fiscal year.

The district will not fill between 25 and 30 retirements and also on Wednesday approved a personnel report that included 15 “honorable dismissals.” These positions will be re-examined when Title grants come through, most likely in May or June. Two performance-based “non-renewals” also were approved.

The district also reorganized its administration, shifting several principals throughout the district.

Assistant Superintendent of Human Resources Lori Belha’s retirement will mean the elimination of her position and the current director of human resources, Wayne Spychala, will return to the science classroom at Franklin Elementary School. Harris said a new director would be hired.

Harris estimated that the reorganization moves will carve $300,000 out of the projected deficit.