U-46 looks to save $4.4 million
In the face of lagging state aid and a rise in home foreclosures, Elgin Area School District U-46 Monday announced plans to tighten its belt another notch in an effort to save a total of $4.4 million.
In December, the district began reducing expenditures in its central office to keep the 2008-09 budget balanced.
By putting capital expenditures on the back burner, eliminating nonessential overtime, cutting spending on office supplies by about 15 percent and limiting conference attendance, paid student helpers, travel and food at meetings, Prince said U-46 would save about $2.7 million.
That $2.7 million, he said Monday, is not enough.
Despite the $1.4 billion in bonds issued last month to pay schools and state contractors, Comptroller Dan Hynes' office still had more than 9,000 vouchers for Illinois schools totaling more than $550 million, State Education Superintendent Christopher Koch wrote to legislators 10 days ago.
U-46 is still waiting on about $11 million, Prince said. Compounding this is a steady increase in mortgage foreclosures within the district's boundaries. In Kane County, Prince said, foreclosures have increased from 2,002 in 2007 to 2,944 in 2008.
In DuPage County, it's even worse, with an increase from 3,141 to 4,704.
The district has not yet been able to get foreclosure information out of Cook County, Prince said.
U-46 is also seeing a significant decline in the amount of interest earned on investments - with only $992,000 this year compared with $2.8 million projected.
"Why do I bear such grim news?" Prince said. "Part of it is I want the board to understand that we didn't wait until the end of (the fiscal year) to figure out if we're going to balance or not. We obviously don't have a crystal ball. We're trying to be as proactive as we possibly can."
A second phase of cutbacks should reduce spending by another $1.7 million.
Prince advised the board to reduce third-party contracts where possible, as well as the use of substitute teachers when regular classroom teachers head to professional development sessions.
Energy conservation, he said, "has to be a core part of our economizing over the long haul." Temperatures have already been reduced in large spaces like auditoriums, as well as in classrooms. The district will start reducing temperatures even more this week.
Along with general energy conservation, Prince said restricting the use of some buildings for after-school activities and rentals could be a money-saving move.
The use of costly facilities, like high school swimming pools, should also be reduced, he said.
"I know it sounds bleak," Prince told the board. "It's serious, but I believe we have the ability to tighten up and to lean out more. These represent efforts to try to help us do that. It's good practice for the long haul here."