How Dist. 54 managed a balanced budget

In one way, a balanced budget is no more than a problem that didn't happen.

But as Schaumburg Township Elementary District 54 achieves one for the 13th consecutive year, officials believe both taxpayers and students are experiencing a real, mutual benefit.

"We were able to do this without cutting any of our programs, so no students were harmed by this," school board President Charlotte Kegarise said.

But that only makes the goal tougher to achieve with significant increases in energy costs that are beyond the district's control, Assistant Superintendent for Business Mohsin Dada said.

The district has tentatively budgeted its expenses for the 2008-09 school year at $191.5 million and revenues at $191.8 million.

That's a 1.5 percent decrease over last year's budgeted expenses and a 4 percent decrease over last year's revenues.

As the district nears debt-free status in 2010, it's been experiencing reductions in its total tax rate, Dada said.

In fact, the district hasn't had a tax-rate increase since 1970, and has maintained a balanced budget since the board made it mandatory and Dada came aboard 13 years ago.

As rare as balanced budgets are among school districts, they're even rarer when there's no increase in the tax rate or a cut in services, Dada said.

But District 54 is large enough to be able to negotiate its own energy prices, rather than do so through a co-op, Kegarise said.

The district negotiated a very favorable cost for natural gas last summer and was able to store it and use it throughout the year.

The district has also been able to offer an incentive package for early retirement, which has proven attractive to experienced teachers as well as beneficial to the district's finances, Dada said.

Throughout the whole process, there's been no increase in class sizes or reduction in programs, he added. In fact, the district has continued to renovate its buildings regularly for the addition of new technology.

The district's five-year projection anticipates the continuation of balanced budgets as well, Dada said.

A public hearing on the budget will be held at 7:30 p.m. Aug. 14 at the district offices, 524 E. Schaumburg Road in Schaumburg. Final approval is expected later that night. The budget is available for public review at the district headquarters until then.