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District 300 projects $60 million in reserves by school year's end

Bolstered by a projected $60 million surplus by the end of this school year, Community Unit District 300 officials say the district is on good financial footing if forced to absorb a teacher pension cost shift or property tax freeze in coming years.

"We've got some time to adjust if we get lower revenue in the future or have more expenses related to the pension shift," said Susan Harkin, District 300 chief financial officer. "We are kind of riding the tide right now. If pension shifts or a property tax freeze were going to come through, we would have some serious concerns starting in 2020."

The District 300 school board recently approved spending $267 million for the 2016-17 school year, a $7 million increase from the previous year's expenditures put mostly toward new programs, teachers and equipment.

New programs this year include science and art education and instructional coaches for all district elementary schools - a total cost of about $2.2 million. The Algonquin-based district hired approximately 20 teachers ($1 million) due to enrollment increases, and rolled out 12,350 Chromebooks for students entering first through eighth grades ($1.2 million) with additional instructional coaches to support the digital shift ($400,000).

Also new this year is an alternative program for at-risk students ($600,000) who might be credit deficient and might not be able to graduate with their class. The program allows students to "catch up" providing in-school help combined with an internship program, night school, or online learning.

"It really is based upon the individual student's needs to try and get them back on track so they can graduate on time," Harkin said.

A 10 percent overall rise in health insurance costs and 2 percent average increase in salaries among all employees account for the remainder of the $7 million increase this year.

Tuition costs for the district's Cambridge Lakes Charter School in Pingree Grove and special education students also have increased 5 percent.

Revenues have gone up with a projected increase of about $7.4 million in General State Aid due to a decline in property values, per the state's funding formula, Harkin said.

State funding accounts for nearly 22 percent of the district's budgeted revenues - roughly $41 million in General State Aid and about $19 million in funding for categoricals, such as transportation and special education.

While there is some uncertainty about school funding at the state level, Harkin expects to receive 100 percent of anticipated revenue.

The district has budgeted $2.9 million for capital projects this year, including the completed $2.5 million renovation of Carpentersville Middle School to accommodate sixth-graders. Officials now are working to identify capital projects that will be done next year.

The 2016-17 budget includes a 0.7 percent property tax levy increase plus revenue captured from property added to the tax rolls - estimated to be $40 million worth of new construction. The owner of a $200,000 home can expect to pay $26 more yearly if the levy increase is approved by the school board later this year.

Susan Harkin
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