Computer snafu may cost N. Chicago schools $1 million

North Chicago Community Unit School District 187 stands to lose close to $1 million in federal impact aid due to an apparent glitch in the submission of an electronic aid application form.

But U.S. Rep. Mark Kirk, R-Highland Park, is intervening and asking that the penalty be waived.

The school district qualifies for "heavily impacted aid" due to the number of students it receives from Naval Station Great Lakes, and last year received more than $8.6 million in impact aid funding, approximately one-third of its budget.

The district was recently notified by a U.S. Department of Education division that it had missed a Feb. 1 deadline to apply for fiscal year 2011 impact aid funding and that a 10 percent penalty would be subtracted from its aid funding for the year.

Kirk, however, said there is evidence the district submitted a faxed copy of the application on Feb. 1, meeting the department's deadline.

The error in submitting the electronic application could be attributed to a "vague and confusing" E-application that has a second submit button that the district may not have hit in completing the form, he said.

"The submit button is buried at the bottom of the screen and a reasonable person could conclude that at this stage, the application is complete following the transmittal of the cover and assurances forms," Kirk wrote in Feb. 22 letter to U.S. Department of Education Secretary Arne Duncan.

District Superintendent Lauri Hakanen said Wednesday that he has learned six other school districts were in the same situation, and that the submit-button glitch appeared to be at the receiving end of the application process, which may be reconfigured for future applications.

Kirk said that the penalty would serve no purpose and would obviously have a negative impact on the unit school district.

"The penalty represents excessive punishment and poses needless financial hardship for the school district," Kirk wrote. "A 10 percent reduction in its impact aid payments would have a devastating effect on the school district and the surrounding community."

Hakanen said he is optimistic the situation will be resolved with Kirk's help.

"It's critical. Every dollar in our district right now is critical," Hakanen said.