Dist. 211's tentative budget in the black
The $229 million 2011-12 tentative budget to be presented to the Palatine-Schaumburg High School District 211 board Thursday evening is in the black, with $585,000 in excess revenue over expenditures.
Not including the $1.8 million appropriated for contingencies, which the district has not historically utilized, the budget excess in all funds is $2.3 million.
The district has also budgeted $4 million of reductions from the 2011 fiscal year and a minimum 33.3 percent unreserved fund balance within each of the major operating funds to offset any anticipated losses or delays in state funding.
Reductions were made by cuts in technology, staffing efficiencies based on enrollment levels in activities, and cuts in expenses supplies. The district also incorporated electronic forms of communication and reduced mailings and began a restructured insurance program for retirees.
The changes went into effect in 2011, and Associate Superintendent for Business David Torres said he is now beginning to see reductions in the budget.
“As a result of those budget reductions, we have been able to maintain an adequate reserve in all of our operating funds,” he added.
“This is good … as far as being able to have reserves going through, given some of the volatility that we've experienced in the past few years with state funding.”
Torres noted that the state is generally about six months behind in providing districts their funding.
The district's biggest expenditure is for salaries, which are expected to increase by 2.6 percent compared to last year's estimated actual expenditures in that category.
Local property taxes, which account for about 85 percent of the district's revenue, are budgeted to bring in about $4 million, or 2 percent, more this school year.
The tax cap law, which is driven by the consumer price index, determines the rate at which the school district is able to raise its proprty tax levy. Last year, the CPI increased by 2.7 percent and that was reflected in the levy for property taxes, said Torres. For the next fiscal year, CPI will allow an increase of 1.5 percent.
This year, the debt service levy will be reduced by $3.7 million. Since 2007, the board has reduced the overall debt service levy by $16.7 million. “It's allowing us to keep our tax rate controlled, and it's a positive story for our taxpayers overall,” Torres said.
The administration has allocated $1.5 million in the operations/maintenance fund to pay for life safety approved projects, as dictated by the state. No life safety work was in last year's budget, but offsetting that was last year's one-time allocation of $1.2 million to technology, Torres said.
“That was a one-time decision that was made,” said Torres. “Last year, we were able to have a one-time capital outlay purchase for technology, and in this year's budget, we have the commencement of the life safety projects. They seem to balance each other.”
A public hearing on the budget will be held 7:30 p.m. Thursday, Sept. 22, at 1750 S. Roselle Road.
The tentative budget is posted on the district's website, d211.org, under the agenda for Thursday's board meeting.