Stimulus bill could help Dist. 300 balance its budget

For Community Unit District 300, the federal economic stimulus bill could mean the difference between program cuts and breaking even.

The $838 billion package of spending and tax cuts, which is set to clear the U.S. Senate on Tuesday, could inject more than $2.8 million into District 300's coffers during the 2009-10 school year, according to the district's latest estimates.

The infusion of cash would mean the district could end the next school year with a balanced budget - instead of the multimillion-dollar deficit the district was projecting just one month ago.

Even with the windfall, District 300 officials may have to keep a lid on spending to finish in the black.

Not filling 30 staff vacancies and medical insurance savings could save the district about $2.5 million, according to Chief Financial Officer Cheryl Crates.

There are still many unknowns. While passage of the stimulus package appears certain, the final provisions of the bill will be ironed out in negotiations between the Senate and the House.

State funding is also a major factor. If the state increases the amount of per-student spending by $130, as the Illinois State Board of Education has proposed, the district could finish the year in the black.

While a $9 billion state budget shortfall would seem to make the prospect of increased state funding remote, the federal stimulus bill is expected to include billions that would help states preserve or even increase funding for education.

One source of funding definitely is not going to boost District 300's balance sheet next year: local property taxes. Because of tax cap law, the district will not be able to increase its tax haul next year by more than a tenth of a percent.