Fiscal Year 2020-2021 Budgeting During a Pandemic
Mission, Vision Mission: The mission of District 58, in partnership with parents and community, is to challenge and engage each child by providing quality educational programs and support services in safe , nurturing , and child-centered environments in order to prepare all students to be lifelong learners and contributing members of a global society. Vision: ■ We Envision a school district that inspires children , sparks creative and innovative thinking, celebrates diversity, and builds visionaries. ■ We Seek an education that excites minds, touches spirits, challenges abilities, and prepares our children for life. ■ We Believe every child should be expected to grow, stretch, evolve and embrace the challenges of the future in a global environment.
Strategic Plan Goal # 3 Goal 3.2 Ensure the availability of resources necessary to reinvigorate and sustain District facilities, support quality programming, and attract and retain highly effective staff to meet the needs of all students.
Overall Goals of this Budget & Beyond ● Navigate the pandemic ● Provide consistent services to students and staff as we would in any year ● Manage the deficit ● Place us back on a path to a surplus and sustainability (FY 22)
Expenditure Assumptions · Expenditures associated with implementation of the current Return to Learn Plan approved by the Board. · Added positions in Special Services approved by the Board, and reductions in SASED and Private placement · Field trips and athletics and outdoor education will take place in the spring of 2021 · Most stipends will start in the Spring. · Transportation is estimated at 98% of last year budget · Medical Insurance premiums equivalents staying flat January 1, 2021, which still requires a 2.5% increase in budget · Reductions in both expenditures and revenue for food service for the first half of the school year. · Reductions in substitute pay, overtime and instructional aides during remote learning period. · Increases to Operations and Maintenance for purchase of COVID-19 required PPE, cleaning products, tents, and rental of containers and additional tents as needed in the Spring. · Increases to Operations and Maintenance for contracted service for snow removal, landscape, and repairs to allow operations staff more time to ensure safe clean schools. · Capital revenue and expenditure for El Sierra playground largely funded by the State of Illinois
Revenue Changes The current budget has over $2.12 million in lost revenue from fiscal year 2020: · OKEEP Fees $1,000,000 · Pre-K tuition, bus fees, and student registration fees reductions 125,000 · Transportation reimbursement claim $750,000 · Interest income $122,000 · Corporate Personal Property Replacement Tax (CPPRT) $130,000 The loss of revenue from earlier projections is greater than the $2.1 million, since early projections had assumed increases in State Aid, CPPRT and Interest Income.
Budget Recap
Need for Borrowing (4 options to consider) ● Create a traditional short term loan or line of credit from the bank Approve the issuance of tax anticipation warrants (TAWs) ● Issue working cash bonds for capital work for the summer early ● enough to use cash balance for short term operational needs. ● If the fund balance is sufficient in the MRF, transfer from the MRF to the general checking account funds sufficient to cover expenditures, and once tax receipts arrive transfer back. Please note, these are options and not recommendations at this time.
FY 21/ FY 22 Budget Calendar August- Approve the tentative budget & display for 30 days September- Approve FY 2021 Budget October- Initial review of 2020 Tax levy November- Approve 2020 Tax levy December- FY 22-27 Budget projections February- Update FY 21 and 22 projection Approve reductions as needed, approve fees for FY 22 March- Issue TAWs if needed April/May- Review updated FY 22 projections
Long-Term Projection (What if...) State revenue decreases? Economy/ inflation goes negative? (currently trending at 1% increase) The current phase we are in exists for the next 12 months? The District has a substantial capital needs at a building where it is limited in funding, (ie: roof failure)
What if we can’t recover quickly? The Reality This crisis has forced immediate needs to be met and others to be put off ● District 58 cannot sustain a multi-year deficit ● Our tax base does not allow for large fund balances ● We do not have extra programming that can be easily cut ● Conversations Must Take Pace re: Long Term Restructuring Referendum Considerations ● Education Fund ○ Construction Bonds ○ Building Utilization/Boundaries ● Consolidation of Administrative Centers and/or Programs ● Selling of Assets ● Restructuring of Staff due to the Changing Landscape ●
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