U-46 predicts budget surplus, with conditions

Despite late payments, reduced revenues from the state and other variables, Elgin Area School District U-46 leaders anticipate a budget with a surplus of $11 million for the 2011-12 school year.

In a presentation to the school board Monday, district Finance Director Jeff King and Dale Burnidge, director of financial operations, said the district is projecting revenues and other financing sources to total $487.3 million, while expenses are projected at $476.3 million.

“There remain several unknowns that will affect our budget,” King said in a news release. “The continuing struggle the state of Illinois has in reimbursing school districts, and the possibility that payments for specific programs like transportation could be further reduced, will impact our tentative budget.”

Those unknowns include ongoing contract negotiations, rising health care costs and litigation, Superintendent Jose Torres said in a news release.

Burnidge said while there are no significant changes in the number of full-time employees, employee benefits will cost the district $7.5 million more in the 2011-12 year. The district also continues to negotiate with six union groups to potentially reduce salary costs, district leaders said.

In addition, the district is anticipating three quarterly payments for categorical funding based on the state’s history of late payments, Burnidge said. The state still owes the district $9 million from the 2010-11 fiscal year. The district is also expecting a 5 percent decrease in general state aid funding, which will reduce the district’s payment by $3.5 million.

The budget will now go on display at the district’s headquarters, 355 E. Chicago St., until the board holds a public hearing Sept. 12. Final adoption of the budget is expected Sept. 26.