District 15's budget includes $4.3 million in COVID-19 costs
Palatine Township Elementary District 15's budget for 2020-21 projects a $2.5 million deficit, with $4.3 million in expenses due to COVID-19, although school officials plan to revisit the numbers on an ongoing basis.
Diana McCluskey, chief school business official, and Josh Schoot, director of fiscal services, gave a presentation Wednesday before the school board approved the budget.
If it weren't for COVID-19, the district would have a balanced budget, or perhaps a "slight" built-in deficit due to capital and maintenance projects, Schoot said.
The district projects $199.3 million in expenses in 2020-21, a $6 million increase over last year's $193.3 million. Salaries and benefits account for 71% of expenses. Last year's spending ended under budget, at $184.9 million, due to savings from schools closing after the stay-at-home order in March, McCluskey said.
Property tax revenues, which account for 72% of overall revenues, are estimated at $129 million, up from $124.3 million last year, she said.
The district will offset the deficit with reserves, and expects to have $39.2 million in operating reserves at the end of the 2020-21 fiscal year, equivalent to 22% of yearly operational costs.
"Thank God the district has a healthy fund balance," McCluskey said.
The budget includes $4.3 million in expenses directly related to COVID-19, school officials said: $2.5 million in salary and benefits for 40 full-time equivalent teachers hired for virtual learning classrooms; $1 million for enhanced cleaning and sanitation; $250,000 worth of online curriculum purchases; and technology expenses like additional laptops and hot spots for students.
The district is conducting classes virtually with a plan to begin rolling re-entry Sept. 21.
District spokeswoman Morgan Delack said the additional teachers were needed because in-person classes, when they resume, will be smaller, with about 30% of students choosing to continue virtual learning even after in-person learning resumes. Elementary students can revisit that decision after the first semester and junior high schoolers after the first trimester, she said.
The COVID-19 costs will be partly offset by $1.2 million expected from the federal Coronavirus Aid, Relief, and Economic Security, or CARES, Act, McCluskey said. The district received $400,000 in CARES Act funds for the last school year.
The district's budget includes $10 million for facility improvements - such as secure vestibules at six schools, a new playground for Conyers Learning Academy and more - that are mostly completed, and $6 million in life safety improvements, such as boiler replacements at five buildings.
The district also projects an estimated $1 million decrease from local sources of funding due to virtual learning, including tuition from preschool and special education, lunch and transportation fees, and more, McCluskey and Schoot said.