District 200 up against $8.6 million deficit -- and can't borrow money

With Wheaton Warrenville Unit District 200 facing an $8.6 million budget deficit next year, it should address the entire amount - not just part of it, an advisory panel is suggesting.

District 200's special finance committee also is recommending that the hole in the district's 2010-11 budget could be eliminated by freezing teachers' salaries, reducing stipends for teachers, modifying benefits for administrators and imposing additional fees on parents.

School board members were presented with the panel's finding Wednesday night during a well-attended meeting. Now they must review that recommendation and the nearly $6.7 million in suggested budget cuts proposed by the administration.

A vote on the final list of budget reductions is set for March 24.

Board member John Bomher acknowledges that bringing spending in line with revenue won't be an easy decision.

"We're going to reduce expenditures by a substantial amount on a $155 million budget," he said, adding that $6.2 million in cuts were made last year. "This year, we're looking to take out ($8 million). And it's going to be painful. There's no way around it."

In the meantime, finance committee members say District 200 needs to make the cuts without borrowing money.

"We cannot dig ourselves any further into debt than we are now," said Mark Stern, who serves on the advisory panel. "Based on budget proposals that are coming out of the state, the district is going to need the fund balances that it has in order to deal with state payment issues."

Last April, the district borrowed $20 million to help cover deficits through the 2011-12 academic year.

Stern said that money might be needed if payments from the state dry up.

In determining the $8.6 million projected deficit, officials assumed all administrative salaries would be frozen for the 2010-11 school year and that teachers wouldn't see an increase in their base salary.

However, teachers must agree to any pay freeze because they are represented by a union.

The district and the teachers union are in the process of negotiating a contract.

If there is an agreement that teachers won't receive any step (experience) increase for the coming year, that would generate about $1.5 million in savings, officials estimate.

If there was no salary boost for additional credits or degrees, it would save another $1 million.

In addition to a pay freeze for the teachers, finance panel members said the district should consider a 10 percent reduction of the $3 million in total stipends teachers receive for things like coaching sports and supervising students in the lunchroom.

Whether pay freezes could save teachers from losing their jobs remains to seen.

As part of the administration's proposed cost-reduction plan, 20 full-time teaching positions would be eliminated at the elementary schools.

That would save an estimated $1.2 million.

District 200 could save another $1.5 million by eliminating 25 full-time teaching positions at the four middle schools.

And an additional $480,000 could be saved if eight full-time teaching positions are eliminated at the two high schools.

Dozens of parents have expressed concerns that laying off teachers would increase class sizes.

The finance committee is suggesting that lower class sizes be preserved at the kindergarten through second grade levels.

Meanwhile, parents could be asked to pay higher fees. Also, finance panel members said, the district should consider the possibility of asking voters to approve a property tax rate increase at the "earliest appropriate time."

Another issue that could be explored is the benefits for administrators.

For example, if administrators had to pay 20 percent of their health benefit premiums like teachers, it would save the district $213,000, officials estimate.