District 62 Budget Approved Even as State Owes $1.44 Million in Delayed Grants

Community Consolidated School District 62 Board of Education members unanimously approved the budget for the 2011 fiscal year Monday, Sept. 20, among concerns from school officials about an outstanding $1.44 million in funds from the state of Illinois.

Despite the money the state owes for the 2009-10 grants, district Assistant Superintendent of Business Services Nelson Gray said parents should not see major changes in programming.

However, the state's elimination of funding altogether for a Reading Improvement Grant means District 62 can no longer afford reading tutors, Gray said.

"The reading tutors were released on an annual basis and rehired based on grant availability," Gray said. 

The trickle down of the state's financial woes was not completely unexpected, but officials had not initially anticipated the full extent of the impact.

"It became pretty evident in 2009 that the state was in financial crisis and as with many districts, we did not receive full allocation," Gray explained. "In years past, we've been able to count on that to fund our program."

The district's current fiscal budget, which covers July 1 of this year until June 30, 2011 allows for nearly $136.7 million in expenditures while projecting just less than $76 million in revenue. The district would be facing a $58.7 million-plus deficit if not for its $150 million beginning balance.  

"Part of the deficit budget relates to the fact that state funding is not in place," Gray said. 

Officials have been in contact with the state about budget concerns. District administrators have talked with state legislators to "let them know that we make decisions on staffing before April 1, but we don't find out our budget allocation until July and August," Gray said. "So we already have those faculty and staff that we cannot release if they don't provide funding."

Other areas that negatively impacted the budget included delayed payment of property tax bills in Cook County. The county saw a record number of property tax objections filed last year -- almost 300,000 -- and expect another 400,000 this year, Gray said. 

"Last year, we saw the bills delayed significantly in the fall," Gray said. "(But) because we do have a decent fund balance, we are able to weather that shortfall. There's many districts impacted that will not be able to make their payments without short-term borrowing."

The district is also facing negative impacts on interest earning and a reduction in student fees due to an increase in eligible free lunch students, according to Gray's budget highlight report.

The public will be able to view Gray's report online, said district spokeswoman Mindy Ward.

"We've been pretty transparent with all of this information," she said. 

In other business Monday, the Board of Education recognized several district students and community members for various achievements: alumnus Joey Marella for his Eagle Scout Project; Des Plaines Park District Junior Leaders for their community service; and business leaders Sister Catherine Ryan of Maryville Academy, Carl Costanza of Oakton Community College and John Hecker of Des Plaines Park District.