U-46 to cut millions from budget; athletics, stipends hardest hit

Aiming to help fill Elgin Area School District U-46's giant budget hole, $4.9 million in reductions were announced Monday evening.

It was the fourth round of aggressive cost-cutting measures for the state's second-largest school district in less than a year.

This time, athletic programs, stipends and supply budgets will be among the hardest hit.

"Reductions are never easy," Chief Financial and Operations Officer Ron Ally said.

Halfway into the first semester, Ally said, the district is "trying its best to minimize the impact on classroom instruction."

The largest source of cuts will be to staff stipends - roughly $1.2 million.

Reducing spending once again on capital outlay and supplies will yield another $1.5 million in savings.

High school athletics will see a $166,000 reduction.

Cuts to middle school athletics "B" teams will save $110,000, and swimming pools will be drained after winter activities conclude, saving $200,000.

Several positions, including a computer technician, financial services and information services analyst, will be eliminated at the half-year mark.

Ally also noted that the district's contribution to the Teachers' Retirement System was overbudgeted by $1.3 million.

Last December, U-46 began reducing expenditures in its central office.

By putting capital expenditures on the back burner, eliminating nonessential overtime, cutting spending on office supplies by about 15 percent and limiting conference attendance, paid student helpers, travel and food at meetings, then-Chief Financial Officer John Prince said U-46 would save about $2.7 million.

Jan. 26, Prince announced the district would embark on a second round, aiming to spare another $1.7 million.

To help balance out a $17 million increase in union salaries and benefits, the equivalent of 350 full-time positions were eliminated last March.

In early October, Ally told the school board he projects U-46's deficit to be $53.5 million by June 30.

That breaks down into a $28.9 shortfall from last school year, plus $19.7 million carried over from previous school years and $4.9 million expected this year.

The deficit came from three sources, Ally said. The economic downturn hit U-46 much faster than officials expected. The district saw local, state and federal revenues come in last year at $20 million less than budgeted. At the same time, salary and benefit costs increased beyond what was projected.

Ally has called the situation a "structural imbalance."

District officials will give more information about the new cuts in coming weeks, spokesman Tony Sanders said.

A newly established "budget advisory task force" - composed of administrators, principals, teachers union members and other union groups - has begun meeting to find ways to balance the 2011 budget and reduce the overall deficit by $25 million.