Prospect Hts. Dist. 23 finances looking better at year end

Over the last few years, staff, administration, board, parents, and community members have come together to find ways to cut expenses in School District 23.

And, now all of their efforts have paid off with a balanced budget.

The unaudited surplus in the Operating Funds (Education, Operations & Maintenance, Transportation, IMRF/Social Security) of $420,000 is the first surplus in several years that will be reflected in the final audited 2010-2011 financial statements.

In addition to the intentional budget cuts previously announced, some unexpected reductions also occurred that included lower tuition payments to the Northwest Suburban Special Education Organization (NSSEO) and approximately $200,000 in health insurance costs. These factors place District 23 in better financial shape than the last several years.

While the 2011-2012 budgeted revenues will show an increase of only .23 percent over last year, expenditures will decrease by 7.2 percent. Business Manager Luann Mathis attributes the $1.3 expenditures from the 2010-2011 fiscal year to the move to grade level centers this school year and other cuts in staffing and programming made over the last year and a half including cuts implemented after the April 2011 referendum was unsuccessful.

Still, the board and administration remain cautiously optimistic. The state of Illinois owes the district $44,440 from last year and will owe $1.92 million for 2011-2012. If the payments are late or are not received this fiscal year, the surplus will be affected negatively.

“It is important to note,” commented Board of Education Vice President Mari-Lynn Peters, “that with the current large receivable from the State, our surplus is in the form of an IOU and it is not cash in the bank.”

Three-hundred thousand dollars is budgeted in the Capital Projects Fund for any projects that might occur over winter and spring break. It should be noted that these funds may only be used for Capital Projects as defined in the School Code.

In addition, some of the $1.3 million in cuts the board made this past spring were one-time reductions. Many of the one-time reductions, such as new textbook adoptions, will need to be implemented back into the budget for the 2012-2013 fiscal year which will further reduce the surplus.

“We're a small school district so slight variations can have a big effect on our budget,” said Mathis. “For now, the district is in decent shape financially. I am happy with where we are now, but still cautious looking forward. During the 2011-2012 school year, the board will talk about objectives and where we are as a district should be in terms of educating our students, and not finances.”