U-46 faces $58 million deficit due to lack of state funds

Four days before the end of the school year, Elgin Area School District U-46 was looking at a $58.4 million deficit, school board members heard Monday.

The district's three major operating funds - education, transportation and operations - had a collective $83.9 million deficit.

Staggering as those numbers might be, it's no great surprise for the 41,000-student district, given Illinois' current $1.3 billion backlog of bills to schools across the state.

According to an "outstanding state revenue" list obtained by the Daily Herald, the state now owes U-46 more than $29 million.

Some missing payments stretch as far back as October.

For instance, the state has not made a payment toward the district's free breakfast and lunch program for impoverished students since Oct. 13. U-46 is missing $48,000 in program funds.

"What's really killing us are (the missing payments in) special education and transportation," district spokesman Tony Sanders said. "They are just not paying those."

In each category, U-46 last got money Dec. 28, according to the district document. Its special education fund is missing a total $1.6 million from the state. Transportation is missing $4 million.

General state aid payments are now $2.9 million behind schedule.

Analyst Dale Burnidge of the district's finance department, who made the report to the board in the place of outgoing Chief Financial Officer Ron Ally, said due to the timing of county property tax calendars, the May financial statement is typically the low point of the year. Burnidge said the district has already received substantial payments - $30 million - from Kane and DuPage counties so far this month. It expects several million more.

According to the district's tentative 2011 budget, despite making $30 million in cuts, U-46 expects to begin next year with a $41.3 million deficit in its three main funds.

Regarding state funding, "I guess we would say we remain pessimistic," Superintendent Jose Torres said.

Recently passed legislation, which would help the district recoup millions in state aid money it believes it's been losing out on by being in three different counties, could add approximately $22 million to U-46's state funding allotment next year, according to sponsor state Rep. Keith Farnham, an Elgin Democrat.

But in order to plan for those funds, the legislation first needs to be signed by Gov. Pat Quinn.

It has sat on the governor's desk since the end of last month.

Funds: Legislation to recoup millions sitting on governor's desk