U-46 unveils very lean tentative budget

Despite cutting and cutting, U-46's tentative budget for next year still looks grim.

During a presentation Monday, Chief Financial Officer Ron Ally told the school board that the district is planning a $464.5 million budget for fiscal year 2011 - a $27.3 million decrease from this year.

That may not be enough.

Predicting U-46 will begin next fiscal year with a $41.3 million deficit in its three major operating funds, and ending with a $62 million deficit, Ally noted that roughly $21 million in balancing still has to be done.

"We are required to have this balanced for next fiscal year," he said. "My prayers would be that this would be resolved on the revenue side with the general state aid formula. However, I can't bank on that."

The tentative budget makes several major assumptions. On the revenue side, it assumes that Gov. Pat Quinn's tentative budget will pass, which, without a tax increase, calls for a 17 percent decrease to elementary and secondary education funding. For U-46, that means general state aid would be cut in half, from $66 million this year to just $33 million next year.

Categorical would be reduced by $8.8 million, to $73.8 million. On the expenditure side, the budget assumes no base salary, step or lane increases for teachers; no raises for administrators and nonunion employees for the second consecutive year; and a 9 percent medical insurance increase cost to the district.

The district plans to spend $16.2 million less in salaries and $10.1 million less in benefits Teachers contract negotiations are currently going on. Millions more in savings from either salary cuts or increasing individual insurance contributions could be gained.

March 15, U-46 announced $30 million in cuts for next year, which included 1,079 employee layoffs. Ally said then that the district had "over-RIFed" - cut more individuals than necessary - to pad itself against state funding uncertainties. If the revenue picture does improve, staff will be called back.

"It's been very painful to get to the point we are at," he said. "I feel like we've planned appropriately for this. So we're not coming back to the board many times over announcing further reductions."

Ally also expressed hope that the state would come through with a funding fix for the district. Officials believe the district is being shortchanged in state aid by being considered a primarily Kane County district by the state board, though most of its taxable property lies in Cook County. Officials have appealed to legislators, as well as the state board in recent months.

"It's been very difficult to get to a point to identify what it would take to fix it for us," He said. "It's been somewhat of a soap opera for over a year. The terrible thing is, we still don't have this fixed."

The budget will next go to the district's finance committee for review. The board will see the budget again in August, Superintendent Jose Torres said.