Unexpected windfalls cut Palatine District 15 2010-11 deficit

Due to some unexpected, mostly one-time windfalls, Palatine Township Elementary District 15 was only slightly in the red last year.

The board Wednesday learned the 2010-11 deficit was about $690,527 compared to the $5.8 million originally budgeted.

“We had some nice surprises,” Assistant Superintendent Mike Adamczyk said, adding that the five-year financial projections still show a structural deficit.

The most significant additional revenue last year was about $1.7 million in unanticipated property taxes, largely due to the district collecting more than 98 percent of its levy, the highest level in several years.

Frugal spending played a role, with expenditures coming in 1.1 percent under budget. And because of its growing poverty rate, which Adamczyk believes is now up to about 35 percent, District 15 saw more than $800,000 in additional Medicaid reimbursement payments.

Though officials were pleased with last year’s adjusted figures, they also acknowledge the far less rosy picture being painted over the next five years.

If nothing changes, the $6.2 million deficit budgeted this school year will steadily grow to about $12.4 million in 2015-16, while the district’s savings will drop from a healthy $55 million fund balance to about $5 million over the same time period.

“We got some very good news this year, but the problem hasn’t been corrected,” board member Scott Herr said.

Adamczyk said it’s possible the district could see future unbudgeted windfalls given the education stimulus money included in President Obama’s jobs bill, but he’s not hopeful it will pass.

Meanwhile, the district is taking its next steps to remedy what officials are calling a structural deficit by hosting a community forum later this month.

Superintendent Scott Thompson said the public is invited to a presentation and discussion on the district’s finances, where attendees also can offer suggestions to administrators and board members.

After that, budget reduction committees will convene to prioritize and make recommendations on places to cut. In January, a proposal will come before the board and in February action is expected to be taken.

Staff cuts, if necessary, will be made in March, Thompson said.

The upcoming forum will take place from 7 to 9 p.m. Monday, Oct. 24 at the Joseph M. Kiszka Educational Service Center, 580 N. First Bank Drive, Palatine.