A REPORT TO STAKEHOLDERS ON DISTRICT #235 FINANCES
As many of you are probably aware, the State of Illinois is in a financial mess. The state owes billions of dollars to a tremendous number of providers, vendors and pension plans. For years, the state has delayed payments on these incurred obligations and as a result, fallen further and further behind on these payments. People all over the state are feeling the effects of the state’s mismanagement of its funds.
I write to you today to inform you about how the effect of the state’s financial mess will be felt soon in District 235. Recently, State Superintendent of Schools Chris Koch informed all Illinois Public School District superintendents that our General State Aid payments for the 2014-2015 school year could be cut by as much as 35%. For the past two years, the state has cut our General State Aid payments by 11%. That is to say that for every $100 the state owes us, they are paying us $89. To use that example further if the GSA cut goes to 65%; for every $100 the state owes us, they would pay us ONLY $65. I have calculated what a cut in our general state aid will be from this year to next if the cut is in fact 35%. We would see our General State Aid payment go from $2,080,923 to $1,348,432 or a total reduction of $732,491. I wonder how many of our stakeholders households could withstand a 35% reduction in your income?
Over the course of the last several years, we have cut expenditures in District 235. As positions have become vacant, we have reviewed the need for those positions, and in many cases, not filled those positions that became vacant. We have made other reductions in our spending as well but at the end of the day, we still deficit spent during the 2012-2013 school year and our budget for this year is a deficit budget as well. The Board made a decision to approve these deficit budgets and spend some of our reserve funds to make up that deficit.
Over the course of the last couple of weeks, I have been working closely with the Board, the administrative team, the teacher association leadership team and our professional staff to discuss our next steps in dealing with the significant loss of General State Aid and the continuing spending deficits that we have had for the last two years. At the March 19, 2014, Board meeting, I presented to the Board a list of proposed budget reductions (areas where we could spend less) and budget cuts (total elimination of spending). The Board conducted a preliminary review of those items and discussed each one. They have given me direction on which of those approximately 35 items they wanted more information on in order to consider further. I will be presenting this information to the Board at a special meeting on Monday, March 31, 2014, at 6 pm in the north campus library. The public is invited and encouraged to attend this very important meeting. There will be no action taken on any of the recommended items at that meeting. A second public meeting will be held on Wednesday, April 9, 2014, at 6 pm in the WCES Cafeteria. It is at this meeting, that I expect the Board to take action on the final recommended budget cuts and/or reductions. There will be a 75 minute public comment period from 6:00 – 7:15 pm to start this meeting. The Board will then begin to take action on the proposed budget reductions and cuts at 7:15 pm.
The proposed cuts and reductions that are under consideration will have a negative impact on our students and staff. This financial crisis that the State of Illinois is in, is not the fault of public schools or public educators. It is not the fault of the West Central Board of Education or district administrators or staff. This is totally the fault of our elected officials in Springfield. I encourage each of you to contact the 4 legislative leaders (Speaker of the House Mike Madigan; Senate President John Cullerton; Minority Leader in the House Jim Durkin and Senate Minority Leader Christine Radogno) as well as our local legislators (State Senator John Sullivan and State Representative Jil Tracy) and let them know that they need to address this fiscal mess the state finds itself in. Please emphasize the following four key points:
- A proration at 65% results in reduction of $732,491 to the West Central School District
- A proration at 75% results in reduction of $518,628 to the West Central School District
- Please vote to at least continue the current proration rate of 89%, if not increase the states commitment to GSA dollars promised to our school districts.
- Our children’s future is at stake.
Please continue to watch the district website for additional information. Please feel free to contact me or any of the Board members with questions that you have. Please do not depend on social media as your undisputed source of accurate information. Often times, the information on social media is inaccurate or just plain wrong. I am more than willing to discuss our districts financial situation with any district stakeholder. I welcome the opportunity. Please become informed about the state fiscal mess. Write letters, call legislators and get accurate information. Our children’s future and the future of this school district depend on it.
LEGISLATORS CONTACT INFORMATION
House Speaker Mike Madigan Senate President John Cullerton
300 Capital Building 327 Capital Building
Springfield, IL 62706 Springfield, IL 62706
(217) 782-9407 (217) 782-2728
(217) 524-1794 (FAX) (217) 782-3242 (FAX)
Representative Jim Durkin Senator Christine Radogno
Republican Leader of the House Senate Minority Leader
316 Capital Building 309G Capital Building
Springfield, IL 62706 Springfield, IL 62706
(217) 782-0494 (217) 782-9407
(217) 782-7012 (FAX) (217) 782-7818 (FAX)
State Senator John Sullivan State Senator John Sullivan
Room M 120 State Capitol 440 N. LaFayette, Suite 100
Springfield, IL 62706 Macomb, IL 61455
(217)-782-2479 (309) 833-5526
State Representative Norine Hammond State Representative Norine Hammond
213 N Stratton Office Building 331 N. Lafayette Street
Springfield, IL 62706 Macomb, IL 61455
(217)-782-0416 (309) 836- 2707
rephammond@macomb.com
State Representative Jil Tracy State Representative Jil Tracy
207 North Stratton Office Building 3701 East Lake Centre Drive
Springfield, IL 62706 Quincy, IL 62305
(217) 782-8096 (217) 223-0833
jiltracy@jiltracy.com
