Updates to Tentative Budget, Review of 2016-17 Financials

Assistant Superintendent for Business Services Eric Miller provided an updated and final Fiscal Year 2018 budget to the Glenview District 34 Board of Education on Monday.
 
The district is projecting $67.1 million in operating revenues and $69.8 million in operating expenditures. This is a change from when the tentative budget was first presented in May, which estimated $67.1 million in operating revenues and $69.4 million in operating expenditures.
 
As Miller explained, expenditures increased from when the budget was first presented in order to reflect the full classified staffing allocation previously approved by the Board. The overall impact this had on the budget was counterbalanced by a change to certain health insurance plans, which reduced expenses by $300,000. As a result, the district is now projecting a $2.7 million deficit.
 
“As an administration, we continue to have difficult but important conversations regarding our approach to decreasing the overall projected deficit. These discussions, coupled with the uncertainty of potential legislation in Springfield, more specifically the future of the State Funding Formula for Schools, requires an ongoing commitment to reducing our spending,” said Superintendent Dr. Dane Delli.  
 
At this time, the future of Senate Bill 1, which determines the future of state funding, remains uncertain given its many unique complexities. However, Miller provided the Board the following potential scenarios:
 
  • If nothing were to happen with SB1, District 34 stands to lose approximately $3.75 million of the $5 million in state funding it is estimating to receive in Fiscal Year 2018.
  • If SB1 passes, according to Illinois State Board of Education using Fiscal Year 2017 numbers, District 34 would stand to gain approximately $116,000.
  • If the AV (Amendatory Veto) is approved as designed by the Governor’s office, initial analysis indicates District 34 would loose approximately $100,000 next year and state funding would be determined based on a per pupil model moving forward.  
 
 
“We are fortunate that a majority of our revenues are from local property taxes and we have a healthy fund balance in order to weather an immediate potential impact,” Miller said. “However, the long-term impact remains unknown, and we must continue to follow this conversation carefully to better understand how we will respond in the most fiscally responsible way.”
 
Operating expenditures were based on several factors such as anticipated student enrollment, approved instructional programming and planned capital projects. Operating revenues were based on factors such as the estimated 2017 tax levy extension, Board approved student fees, the current general state aid funding formula, and flat federal funding.
 
Miller also presented the Board a review of the unaudited financials from last year’s budget cycle. A current analysis shows that final operating revenues where within 1 percent of estimates and operating expenditures were within .1 percent of estimates. The total operating deficit also was within .2 percent of estimates. This is an important distinction that represents responsible financial budgeting given how close budget estimates were to the final amounts.
 
The district has posted the tentative budget for 2017-18 on its website for public viewing. The community will also have an opportunity to provide its input at a public hearing scheduled for September 25 at 7:30 pm. Following the public hearing, it is expected the Board will take action on this recommended budget.