U-46 adds $15 million to deficit predictions

A mass e-mail to Elgin Area School District U-46 staff reveals the district's financial situation is even more dire than originally thought.

"I intended to return to the topic of rigor in this week's message," Superintendent Jose Torres wrote Thursday night. "However, budget issues continue to exert enormous pressure ... I believe it is important and prudent for me to share information with you regarding our district's financial status and our financial projections for next school year and beyond."

The 41,000-student district had originally projected to be $53.5 million in the red come June. It has spent recent months making $4.9 million in cuts - draining swimming pools, eliminating some freshman "B" teams, slashing staff stipends and supply budgets, among other things.

However, outside financial consultant PMA Financial Network Inc. is now predicting U-46's deficit will rise by at least $15 million next year. If no additional cuts are made, that will bring the total deficit to $63.6 million.

But it's inevitable that additional cuts are coming, Chief Financial Officer Ron Ally has warned. "This is why we must continue to look for additional revenue and continue to reduce our expenses," Ally said in a Friday news release. "... We must live within the resources we are provided, while working toward eliminating the accumulated deficit."

Ally and Torres have both deemed the firm's projection "very conservative" because it assumes no raises for employees. The 2,400-member Elgin Teachers Association contract expires in August. The projection also figures on a 9-percent increase in health insurance costs and stable state revenue.

Currently, the state is $19 million behind in payments to U-46.

As the state's second largest school district, U-46 is not alone in budget problems, but it is the biggest example in the suburbs. In the past week, Maine Township High School 207 revealed its deficit is expected to be $19 million next year, and it expects to cut 137 jobs. Carpentersville-based Community Unit District 300 Superintendent Ken Arndt has proposed $6.4 million in cuts for the 2010-11 school year, including layoffs, furlough days and the elimination of physical education and music for kindergartners.

And approximately 22 teachers in St. Charles Unit District 303 would be laid off and experimental changes put in place under a plan to address a $5.5 million budget deficit.

"I cannot tell you how much time I am spending on these budget issues," Torres concluded in his e-mail. "Upon reflection, I realize that when we announce the budget decisions, most people only get to reflect upon the decisions briefly before the reality of those decisions become real to them. I continue to be committed to try to engage you as much as I can."

The district's budget advisory task force, which is currently examining numerous cost-cutting ideas, will present ideas at community forums next month, District Spokesman Tony Sanders said.