District 300 OKs early budget with big unknown

Despite not knowing how much money it will get from the state, Community Unit District 300 has approved an early version of its 2008-09 budget.

The $184.67 million operating budget would be a 5-percent increase over last year's budget of $175.24 million.

The district has not yet projected its expenses for construction projects and paying off debt, which are not included in the operating budget.

The district is now renovating its middle schools at a cost of at least $27 million and will spend $5.3 million to add six classrooms to Golfview and Parkview elementary schools.

The bulk of the $8.54 million increase in the operating budget would be in salaries and benefits, which would account for $5.17 million of the increase.

More than half of the increased salary and benefit costs - roughly $2.81 million - would be for new hires to staff the new Hampshire High School, accommodate new students and keep class sizes down.

On the revenue side, the major unknown for District 300 is state funding.

Although the state Legislature has approved a budget that would increase funding for public education by $500 million, the budget is not balanced, and Gov. Rod Blagojevich has called lawmakers back to Springfield to fund their proposals.

Under the budget the General Assembly approved in May, the district projects it would get an additional $3.75 million in state aid and have a $2.13 million surplus.

But the District 300 school board has directed Chief Financial Officer Cheryl Crates to prepare the budget under a more conservative scenario that predicts a smaller increase in state funding.

Under the conservative scenario, the district expects to receive an additional $1.93 million in state aid and have a $290,000 surplus.

This year could be the third year in a row the district finishes the year with a surplus, after an infusion of cash from a 2006 tax increase.

The district estimates it finished last school year with a $1.54 million surplus.

Like last year, any surplus this year will be split between the district's cash reserves and district programs.

There are few unknowns on the expense side, Crates said.

The district is in negotiations over its contract with the union that represents teacher aides, but Crates called the contract a "pretty small piece" of the overall budget.