U-46 board reviews $558 million spending plan for school year

Elgin Area School District U-46 officials last week reviewed a proposed $558.1 million spending plan for 2018-19 school year.

Revenues are budgeted at $561.1 million - an increase of $52 million over the previous year - leaving the district with a $3 million surplus across all funds, said Dale Burnidge, director of financial operations.

Expenditures are projected to increase by $40 million over the previous year. Among the big ticket items are $20 million for capital projects, $7.5 million for computer equipment, $5.7 million to replace 74 buses, and just under $4.4 million for hiring 54 new full-time employees, including middle school counselors, assistant principals in larger elementary schools, instructional coaches and additional behavior specialists.

Health insurance costs are increasing $2.5 million. Salaries and benefits, which account for 70 percent of the district's expenses, are increasing by $21.9 million.

School board member Jeanette Ward said the district shouldn't be expanding operations and hiring additional employees while enrollment is declining.

"We should be paying down the debt and reducing property taxes," she said. "There's also the issue of pensions and potential cost shift to the district ... I don't support the direction we are going here."

On the revenue side, the district received $24 million in additional revenues last school year based on the new evidence-based funding formula. Officials estimate receiving $49.6 million from the state this year, which includes an increase of $18 million in evidence-based funding.

Officials will determine the 2018 tax levy in December. A public hearing on the budget is Sept. 10 with final adoption by the school board Sept. 24. To review the proposed budget, visit u-46.org.