2011-2012 Tentative Budget
At its meeting on August 18, 2011, the Board of Education approved the 2011-2012 Tentative Budget as presented. Further, a public hearing will be held at the September 22, 2011 Board of Education meeting, and adoption of the budget must be completed by September 30, 2011.
The Tentative Budget represents the finance and operations plan that supports District 211’s instructional program. The Tentative Budget was developed in accordance with the revised Illinois Accounting Manual and presents revenue and expenditures by category and fund. The budget document is presented in two general sections: working budget summary of revenue and expenditures for all funds; and State Board of Education format.
The following budget parameters were established and incorporated into the 2011-2012 budget development process:
• Maintain a balanced budget in accordance with the School Code (105 ILCS 5/17-1)
• Maintain a minimum 33.3% unreserved fund balance within each of the District’s major operating funds
• Implement planned abatement transfer from Working Cash to Debt Service ($3.7 million)
• Maintain $4.0 million of reductions from FY2011 to offset losses/delays in state funding
• Allocate costs associated with achieving District academic goals
• Allocate staffing costs based on enrollment and instructional programs
• Allocate salary costs based on negotiated contracts and Board approved percentage increases
• Allocate benefit and insurance costs based on projections developed in coordination with Corporate Benefits Consultants, Inc. (CBC)
• Allocate an aggregate increase in operating funds for supplies, purchased services, capital outlay, and other costs within CPI of 1.5% excluding recognized Federal grant funds for Title I and ARRA Special Education
• Allocate $1.5 million in the Operations/Maintenance Fund for Phase 1 Life Safety approved projects
• Allocate $1.8 million for contingency to accommodate any anticipated expenditures (Education - $1.2 million; Operations/Maintenance - $500,000; Transportation $100,000)
For 2011-2012, operating budgets are balanced, fund balances are healthy and planned levy reductions in debt service continue to represent a positive fiscal trend for District 211. Primary operating funds of the District include the Educational, Operations/Maintenance, Transportation, Municipal Retirement, and Working Cash Funds. These operating funds account for approximately 95% of the total budget. The District accounts for three (3) restrictive funds that include debt service, capital projects and life safety. Expenditures for these restrictive funds include payment of principal and interest on outstanding debt, ongoing construction and site improvement projects, and State approved life safety work. Property taxes are the primary source of revenue for the Debt Service Fund, while bond proceeds and/or transfers from other funds serve as the revenue source for Capital Projects and Life Safety. For 2011-2012, no revenue or expenditure activity is planned for these funds.
Overall, the cumulative 2011-2012 budget is projected to be $585,000 in excess revenue over expenditures, and the projected under-budget condition assumes use of contingency. Historically, the District has appropriated contingency amounts in its operating funds, however, has not utilized these emergency funds. Without using contingency, the projected budget excess in all funds in $2.3 million. Overall, the District’s operating funds maintain positive surplus balances for 2011-2012, with only a recognized fund deficit in the Debt Service Fund. The reported $3.5 million budget deficit in the Debt Service Fund is due to a positive levy reduction plan that has been in place since 2007
As part of a multi-year levy reduction (abatement) strategy, the Board of Education approved the reduction of $3.7 million as part of the 2010 levy adopted in December. The debt service reduction strategy provides for the ongoing transfer of monies from the Working Cash Fund to Debt Service to pay a portion of principal and interest on outstanding bonds and subsequently, reducing the Debt Service levy by that same amount. This results in a lower overall tax rate for taxpayers. The reported deficit in the Debt Service fund is due solely to the planned abatement and proportionate reduction in property taxes in our Debt Service levy. Funds transferred from Working Cash for the planned abatements are included in the Debt Service fund balances and are accessed to pay the residual amounts needed after the levy abatements are applied. District 211’s financial plans provide for continuation of this positive abatement strategy through the 2013 levy. Since 2007, the Board of Education has reduced its overall levy by $16.7 million.
Additional information on the 2011-2012 Tentative Budget is available here.
The 2011-2012 Tentative Budget is available here