Increase in state aid helping U-46 break even for year

The Elgin Area School District U-46 school board Monday heard news it had been awaiting for months -- the amended 2007-08 school year budget.

The district's general operating budget will jump from $306 million to $311.6 million, said John Prince, the district's chief financial officer. Most of the revenue increase comes from the recently implemented state budget, reached in January after nearly six months of legislative gridlock.

The district received $3.6 million in general state aid and another $1 million in special education reimbursement, Prince said.

"In spite of frustrations with the (state's) budget process and how long it took, the revenue is very welcome," he said.

The district also expects about $1 million in federal Title III funds for language instruction.

With these boosts, Prince advised a $6.5 million increase in teacher salaries to reflect staffing changes and the negotiated settlement with the Elgin Teacher's Association. He also recommended adding an additional $1.65 million in medical insurance as a precaution against unanticipated claims, and $1.1 million in additional early retirement contributions owed to the Teacher's Retirement System due to unanticipated early retirement option payouts.

"Most of those payouts have already occurred," Prince said.

With amendments in revenue and expenditures, U-46 would have a balance of $4.6 million in its education fund at the end of the fiscal year. However, Prince said, the surplus should be used to offset a $4.8 million deficit in the district's transportation funds.

"We're still structurally balanced," he said.

No new initiatives were recommended to the school board. Maintaining a cautious approach over the next five months, Prince said, will enable the district to "start ahead of the curve" in 2008-09.