D-15 Seeks Input on Anticipated Budget Cuts

The latest updates to District 15’s financial forecast shows the District’s expenditures continuing to exceed its revenues and fund balances declining over the next five years.

The District expected a $5.5 million deficit at the conclusion of the 2010-11 fiscal year, but due to several substantial, one-time budget variances that went in its favor, it ended the year with just a $486,859 shortfall.

Looking forward, projected annual budget deficits are expected to continue this year with a roughly $6.2 million shortfall that would reduce the District’s fund balance from 39.54 percent of its budget, or roughly $55 million, to 33.72 percent, or roughly $49 million. Forecasts of subsequent budgets show a dramatic reduction in the District’s fund balances over the next five years. Annual budget deficits are projected to decrease reserve funds to 2.94 percent of the District’s budget, or roughly $4.8 million, at the end of fiscal year 2015-16.

Currently, the District is exploring ways to correct the structural deficit within its budget—ways to maintain a strong financial position and bring its spending in line with its revenues as much as possible. In this effort, it has developed a schedule for sharing financial information with its various stakeholders in anticipation of budget reductions for the 2012-13 fiscal year. The schedule for these activities is as follows:

November

• Convene budget information forums with:

o   District Leadership Team (administrators and principals)

o   Board and union leadership

• Create and distribute budget fact sheets

December

• Convene budget information forum with:

o   Staff and community members on Monday, December 5, from 7–9 p.m. at Walter R. Sundling Junior High, 1100 N. Smith Street, Palatine

• Convene budget reduction committee with District Leadership Team

January

• Convene budget reduction committees with:

o   Board and union leadership

o   Staff and community members

February

• Present 2012-13 budget reduction proposal to the Board
• Open a period of public comment on the proposal

March

• Present revised 2012-13 budget reduction proposal to the Board
• Present staffing and/or program changes for 2012-13

March/April

• Release staff members required to meet budget target

These communication initiatives are intended to proactively inform the District’s stakeholders, elicit their feedback, and develop a community consensus around the tough decisions that may have to be made.

-Story Submitted by Community Consolidated School District 15