Lake County's District 128 expects to be operating with a deficit in 7 years

Although they're in better financial shape than some other area school boards, Libertyville-Vernon Hills Area High School District 128 officials expect to be out of money and operating with a deficit within seven years.

The dire prediction, based on the bad economy and the stagnating inflation rate, came out during a finance committee meeting Monday night.

The district's revenues, which mostly come from property taxes, are expected to be flat in the future while operating costs are expected to increase, officials said. That lack of balance will mean the district will have to rely more and more on its savings to cover bills and salaries.

Unless other steps are taken, administrators told the school board's facilities and finance committee, the reserve fund will go dry by 2016.

If spending continues at the current rate without more revenues, a deep operating deficit would result.

"(That's) the kiss of death," Superintendent Prentiss Lea said.

To combat the economic forecast, employees will be forced to justify all spending requests for the next fiscal year's budget, which is being prepared now, said Yasmine Dada, the district's assistant superintendent for business.

Additionally, some planned campus improvement projects may be revised to reduce costs or eliminated, Dada said.

"Times have changed," Dada said. "We want to maintain our quality program, but perhaps we can do it differently."

"Can we afford it?" is going to be a key question for school leaders when it comes to future projects, Lea said.

Administrators will talk to the staff about the new approach to the budget. They'll also turn to the teachers union to help develop money-saving ideas.

"That will make a difference," Lea said.

Although some financial experts have predicted the nation's economy will recover within a year or two, Lea said the district can't yet plan for better times.

"We're better to be conservative right now, until we know the train has left and is moving away from the station," he said.