District 158 approves budget amid uncertainty

With key factors affecting revenue and spending still unsettled, Huntley Unit District 158 has approved a tentative operating budget for the 2008-09 school year.

The operating budget includes most of the district's expenses but does not include debt payments or spending on construction.

The $71.9 million operating budget would be a 6-percent increase over last school year's operating budget of $67.8 million.

Most of the $4.1 million increase in operating expenses - about $2.6 million of the increase - would be spent on new hires.

The district expects its energy costs - including fuel, electricity and natural gas - to go up about $790,000, or 37 percent, this year.

Overall, transportation costs are expected to drop 29 percent because the district spent more than $2 million to buy 34 new buses last year.

The district's proposed overall budget for this year is $82.08 million, a 2-percent increase over last year's budget of $80.29 million. It also includes $8.7 million the district will spend to pay off its debt.

But revenue and expenditures could change significantly by the time the district approves its final budget in September.

The major variable on the expense side is the teacher contract.

Although the contract expired June 30, the district and the teachers union have yet to reach an agreement.

The union's proposal would raise the district's costs by at least $8 million - forcing the district to make cuts or go into deficit spending.

The tentative budget does not leave much wiggle room for the district.

The budget contains a $1.73 million operating surplus, but most of the surplus would be eaten up by the district's proposed teacher contract.

The budget includes no increase for teachers - even though compensation would rise at least 4 percent under the district's contract proposal.

"We felt it was better to leave it out altogether because it's just not a known quantity," Superintendent John Burkey said.

Even with a modest increase in teacher compensation, the district would have to make cuts to maintain a 1-percent operating surplus.

"I would not be comfortable without a 1-percent surplus," Burkey said. "We'd have to cut spending somewhere."

The major unknown on the revenue side is state funding.

Based on the budget the state Legislature approved May 31, District 158 expects to get an additional $4.26 million in revenue this year.

The state budget would give public education an additional $500 million and raise the minimum amount spent on each student by $225.

But Gov. Rod Blagojevich and the General Assembly have yet to reach agreement on the budget, and the amount set aside for schools could go down when the state reaches a budget deal.