U-46 unveils a lean budget
On the heels of announcing 348 positions would be cut, Elgin Area School District U-46 unveiled a tentative 2009-10 budget Thursday night.
School officials say the $425 million spending plan - a 1.4 percent increase over this year's projected budget - reflects an effort to conserve in uncertain economic times.
The current 0.1 percent inflation rate, an estimated $9 billion state deficit, a $2 million decline on interest from investments and a rise in area foreclosures all add up to one thing - less money for the district's coffers.
U-46 expects to rake in about $427 million next year, but will spend $2 million less, Chief Financial Officer John Prince said.
"For next year what we're trying to do is not spend, because the revenue picture is so uncertain," he said.
The $427 million assumes no increase in general state aid, along with flat-lined property tax revenues. It does not factor in the $8.5 million in federal stimulus package revenue the district expects to net.
"The federal stimulus money is a big question mark for us," he said. "We don't know what the rules are going to be around using that revenue."
Despite a reduction in work force numbers, U-46 faces a $17 million shortfall due to union salary and benefit increases next year.
The district plans to budget $235 million in staff salaries for 2009-10, just $100,000 less than it projects to spend this year.
Spending on benefits will increase by $2 million.
To balance these out, the budget for capital outlay will decrease by 40 percent, to $12.4 million. As a result, Prince said, some projects will have to be delayed until revenues increase.
Funds on supplies and purchased services will be restricted - aiming to save an $7 million.
Despite two rounds of cutbacks this school year, U-46 will end up spending about $8 million - or 2 percent - more than it spent in 2007-08.
Thursday's presentation was the first public hearing for the 2009-10 budget. A second hearing will take place Thursday, April 9, at Elgin High School.
Prince called the tentative budget a "rough sketch. There are still some details we won't have at this point."
The board will consider approval of the budget Sept. 28.