Dist. 15 superintendent discusses 'historical financial facts'

A month after the Palatine Township Elementary District 15 teachers union ran an ad campaign in the Daily Herald questioning several of the administration's financial claims, Superintendent Scott Thompson provided some “historical financial facts” to back some of them up.

Saying his brief presentation at Wednesday's board meeting was in response to some questions from the community and board members, Thompson first went over figures showing the budget for administrators both districtwide and in the district office has decreased significantly in the past 13 years, largely due to eliminated positions, added responsibilities and more modest compensation.

Last month, the board unanimously voted on a number of cost-cutting measures aimed at slashing the $9.6 million deficit projected for next year, resulting in increased class sizes and a reduction in teaching and program assistant positions. The only cut to the administrative budget was to eliminate a principal allocation totaling $20,000.

“I don't think the administrative costs really have added to our structural deficit, I think we've kept those pretty much inline,” Thompson said. “We have taken a lot of steps in the administrative cost structure over the last 13 years, and I think we really have hit bottom and can't go anymore.”

Thompson also addressed the board's policy that the

district maintain savings, or a fund balance, of at least 30 percent of the operating budget.

A chart showed District 15 between 2003 and 2005 had to borrow money to make payroll despite having a fund balance “in the millions of dollars.” Thompson said property taxes account for 80 to 85 percent of the district's revenue, and that the often unreliable Cook County can be tardy with its biannual payments. Less than two years ago, the district came within a week of having to borrow again.

Thompson also said the district needs to consider more catastrophic possibilities, such as a collapsed building or the state deciding to reduce funding.

Making a strong fund balance all the more important, Thompson said, is that the district's five-year projections show significant deficit spending starting after next year, and the fund will be depleted to $28.3 million, or roughly 18 percent of the district's budget, by the end of 2015-16. It's currently at 42 percent of the budget.

“Not only do we have to have the beginning fund balance, but we have to add to it each year to keep that 30 percent, to keep that cushion, to keep the district moving forward in a strong financial way,” he said.