D. 225 Anticipates Drop in State Funding, Increase in Property Tax Revenue

Budgeting for the 2011-12 fiscal year, District 225 administrators are already bracing for a big drop in state funding.

In the $97 million tentative budget adopted Monday night, the district has decreased its reliance on state funds and increased its reliance on local funds, according to a press release. Just 5 percent of funding this fiscal year will come from the state and federal government—as compared to the average Illinois school district, which receives roughly 38 percent of its funding from the state and 9 percent from federal sources.

“Our district remains fiscally solvent by maintaining a conservative budget approach and through our continued commitment to cost reduction strategies,” Assistant Superintendent for Business Hillarie Siena said in the release. 

Read more: D. 225 Reports 99.9% of Students Graduate; 98% Go On To College

 While expenditures are up this year, mostly due to teacher salaries, so are revenues, and the district expects to take in an additional $2.9 million in property taxes this year.

The tentative budget forecasts an operating fund balance of $65.2 million, which represents a reserve of 63.7 percent of the district’s budget, according to budget documents available on the district website. Board policy requires that the district maintain just 33 percent of its budget in reserves.

"District taxpayers expect us to be fiscally conservative," Board President Skip Shein said in the release. "Strong fund balances are necessary to maintain our stability as we face future challenges such as increasing student enrollment and potential decreases in state and federal funding."

Residents can now take a look at the proposed 2011-12 budget, which is available for public inspection for 30 days beginning July 28. It can be downloaded from the school’s website or viewed in person at the district office reception desk, 3801 W. Lake Ave.

A public hearing will be held at 7 p.m. Sept. 12 to further discuss the budget, which must come before the board for a final vote by Sept. 30.

Here are some of the highlights of the proposed spending for the upcoming school year at  and  high schools:

• Projected revenue is $98.58 million.
• Expected expenditures are $97.93 million, a 4.7 percent increase from .
• Nearly 80 percent of the expenditures are from salaries and employee benefits—with a 5.2 percent increase in salaries based on teachers’ contracts.
• The operating funds balance is 65.9 percent, a 4.4 percent increase from 2010.
• Property tax revenue is on track to increase by $2.9 million.
• Other funding includes a $950,000 rise in federal and state grants due to deferred payments and one-time federal stimulus grants, a $300,000 increase from the Corporate Personal Property Replacement Taxes and $1.6 million from General State Aid.
• Contingencies include $500,000 for the educational fund, $50,000 for the operations and maintenance fund, $50,000 for the transportation fund, $25,000 for the Illinois Municipal Retirement Fund and $25,000 for the Social Security-Medicare fund.

During the last school year, the district received 104 percent of its budgeted revenues and spent 100 percent of its budgeted expenditures. That left a $4.1 million surplus for the upcoming budget.

The North Suburban Special Education District’s (NSSED) budget was also discussed and approved at Monday’s board meeting.

District 225 uses NSSED’s support services, such as the occupational and physical therapy, Educational and Life Skills and North Shore Academy programs.

The NSSED 2011-12 budget of $42.7 million shows a 5.7 percent decrease, or $2.52 million, from the last year. Officials attributed a 3 percent across-the-board tuition increase for the revenue drop.

Additional changes include salary and benefit adjustments and loss revenue due to Illinois State Board of Education personnel reimbursement changes. Elimination of support staff reimbursement saved about $60,000.

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