Dist. 118 faces $2 million deficit next year

Wauconda Unit District 118 is facing a major budget deficit in the upcoming school year, officials said.

Superintendent Dan Coles said this fiscal year's budget is in good shape, but the district is looking at a $2 million deficit in the next fiscal year.

In an attempt to minimize the debt, the district is getting a jump start on how to reduce spending and where to cut expenses from the budget. Officials plan to meet next month to examine existing programs and determine where cuts can be made.

"It's a very, very difficult situation with respect to our budget," Coles said.

Last week, the school board held a public hearing on a proposal to sell $16.9 million in cash bonds to minimize future debt. The money would be used for payroll and other payments the district will have to make as the school year progresses, Coles said.

The district usually has to borrow money to cover some expenses from March through May, but the state is not making payments on time. As a result, officials expect to need to borrow money from December through May, which is when most of the money would be spent, he said.

By using the cash bonds, Coles said the district would save about $100,000 in interest.