Sluggish economy has District 220 looking over its books

Schools are not recession-proof institutions.

That was Barrington Unit District 220 Superintendent Tom Leonard's message to the school board and public at Tuesday's board meeting.

The sudden, severe downturn in the economy is having a negative impact on businesses and government bodies alike, Leonard said.

Even people who've watched the rise and fall of the economy for 50 years have been shocked by the differences between August 2008 and January 2009, he added.

"When you see such a change in reality, you have a responsibility to let the people you represent know," Leonard said. "You don't want Tom Leonard sitting alone in a room making these decisions. We want our whole community to help us make those decisions."

Almost all factors related to the district's revenue have been affected by the change, including the inflation rate, new development, state and federal aid and the expected percentage of payment of the property taxes it's owed.

"There's no way we could have predicted it," board President Brian Battle said. "But we've got to react to it."

Whereas in August the rate of inflation was conservatively estimated by the district at 3.5 percent, in January it was actually only 0.1 percent.

The district previously assumed $40 million worth of annual new growth from property development, but for the time being is staying on the safe side by assuming none.

State and federal aid to the district last summer was estimated to increase 2.5 percent for the year, but is now assumed could drop by up to 3 percent, Leonard said.

Board members asked Leonard for an examination of current staffing levels as well as reviews of general maintenance and education expenses, the 5-year facilities plan and contracted services.

The district also will look into what help it might receive from the economic stimulus package being considered by Congress, which could provide money for construction projects ready to start like the district's Early Learning Center or for technology upgrades.

Barrington resident Ed Roney suggested that as the last teachers' union contract granted raises of more than 5 percent, that the next hold the line at no increases.