U-46 proposes FY2016 budget; federal grant covers costs for 200 more preschoolers

ELGIN - With uncertainty at the state level, Elgin Area School District U-46 administrators are proposing a conservative Fiscal Year 2016 budget featuring balanced revenues over expenditures within its operating funds. Board of education members will hear a presentation about the proposed budget tonight (Aug. 17) during their board meeting. A public budget hearing is set for Sept. 14 before the board votes on the final budget Sept. 28.

"We're pleased that the state education budget calls for more funding, but we know that more financial decisions loom over our state, including pension reform and the final general state budget," said U-46 Chief Executive Officer Tony Sanders. "We are proceeding cautiously as we make expenditure decisions that support our strategic plan and ensure all U-46 students graduate prepared to succeed in college and the workforce."

Local property taxes make up 64 percent of the district's education budget while state funds account for 29 percent and federal grants provide for 7 percent of the total revenue.

General State Aid payments for the 2015-16 school year are estimated to be 92 percent of what the district is owed under the state funding formula. That's a reduction of almost $10 million but an improvement over last year, when the state held back 13 percent, or more than $14 million. While the district should receive four quarterly state categorical payments, which cover expenses such as transportation and special education, the proposed U-46 budget only includes three payments in order to provide some cushion should the state be late with payments.

The proposed $507.5 million FY16 budget projects nearly $7.6 million in additional revenue over the amount budgeted during Fiscal Year 2015. Expenditures will also rise, by almost $20 million. A $13 million difference between total revenues and expenditures will be covered by a surplus created in FY15 through the sale of working cash bonds. U-46 was recognized by the Illinois State Board of Education with a rating of 3.7 out of 4 in its latest financial profile, placing the district among the most financially stable districts in the state.

The proposed budget earmarks the $13 million from last year's bond sale for building improvements. Other major expenditures include leasing 87 new buses and purchasing new computer equipment.

U-46 will receive about $2 million in additional federal funding under a preschool expansion grant that will support 10 new preschool classes, serving an additional 200 4-year-olds in FY2016.

"Research shows every dollar invested in early childhood education gets multiplied many times over in benefits to the children, their families, and society as a whole," said board President Donna Smith. "We are excited by the opportunity to expand our preschool capacity and prepare more of our youngest learners for school."

U-46 continues to work toward fulfilling the ambitious goals of its strategic plan, holistically educating all students and empowering them to become competitive members of this global society. The 2016 budget reflects a commitment to all students, giving them the opportunity to learn from the best teachers, in the best facilities, using leading technologies.

The board will meet at 7 p.m. Monday, Aug. 17, at the district headquarters, 355 E. Chicago St., Elgin. The public hearing will take place at 7 p.m. Sept. 14 in the same location.