Fox Valley schools get passing grades

The financial outlook for Fox Valley school districts is looking up.

In the recently released Illinois State Board of Education's annual financial profile, all five local districts were deemed fiscally sound.

Two local districts, Huntley Unit District 158 and Central Unit District 301, earned the state's highest honor.

District 158, named to the second highest class in 2006, earned top financial status this year by improving its scores in three of the five "financial indicator" categories, according to the report.

District 301 was on the state's financial early warning list in 2006 because of a significant dip in its cash-on-hand fund while being forced to construct new school buildings after an enrollment boom. This year, the district showed marked improvement in its expenditures-to-revenue ratio and its cash-on-hand fund, the report said.

Community Unit District 300 in Carpentersville and Elgin Area School District U-46 were named to the second highest class -- financial review.

District 300, also on the financial review list in 2006, improved its score slightly, earning 3.35 out of a possible 4.0 points.

U-46 in 2006 received a financial early warning designation, with expenditures exceeding revenues by more than $7.5 million. This year, revenue surpassed expenditures by $500,000.

Profile ratings are based on the State Board of Education's analysis of annual financial reports that school districts submitted for the year ending June 30, 2007.

The board's list is created by using five indicators --fund balance to revenue ratio, expenditures to revenues ratio, days cash on hand, percent of short-term borrowing available and percentage of long-term debt remaining.

Across the state, 69 percent of Illinois' 873 school districts received financial recognition, up from 40 percent in 2004. Three percent of schools were hit with financial warning status this year.

"There are no easy decisions when it comes to school funding, but this clearly shows that local boards are being good stewards with the resources the governor and lawmakers have been able to provide them," state school Superintendent Christopher Koch said in a news release.

"It's very promising to see these districts making financial improvements."