Post by title1parent on Aug 27, 2008 5:47:41 GMT -5
www.suburbanchicagonews.com/napervillesun/news/1128484,6_1_NA27_D204BRDFOLO_S1.article
New program puts D204 in the red
August 27, 2008
By Tim Waldorf twaldorf@scn1.com
Indian Prairie School District 204 will run a $2.2 million operating fund deficit this year due to the launch of its all-day kindergarten program.
District 204's board approved a tentative budget for the 2009 fiscal year during its Monday meeting. According to that budget, the district will have $271.6 million in operating expenses, and just $269.4 to cover them.
"That's not a surprise to us," said Dave Holm, District 204's assistant superintendent for finance. "We knew when we made a decision for all-day kindergarten that we'd have a one-year deficit situation caused by that decision, knowing that it would flip and become a revenue producer for us next year and on."
Holm said that shortfall is actually $2 million less than the district projected in March, and $1 million less than advertised just this June.
Funding for the program will come from state revenue that is expected to exceed the outstanding costs associated with starting the program within three years. Each year, the district anticipates it will receive an additional $2 million in state funds above the $6 million cost of the program.
Despite the $2.2 million deficit for the year, the district still expects to have a $75.8 million operating fund balance at year's end. That equates to 27 percent of its operating budget. The Illinois State Board of Education encourages districts to maintain balances of at least 25 percent.
In total, the district expects to incur $388.3 million of expenses this year; $116.6 million of that will go toward debt service and capital projects, such as the construction of Metea Valley High School. It expects to pay $30.2 million toward these sorts of expenses this year, leaving its nonoperating funds with a $38.3 million balance.
A budget hearing will be scheduled for Sept. 22, and a vote to approve the budget will follow that hearing.
New program puts D204 in the red
August 27, 2008
By Tim Waldorf twaldorf@scn1.com
Indian Prairie School District 204 will run a $2.2 million operating fund deficit this year due to the launch of its all-day kindergarten program.
District 204's board approved a tentative budget for the 2009 fiscal year during its Monday meeting. According to that budget, the district will have $271.6 million in operating expenses, and just $269.4 to cover them.
"That's not a surprise to us," said Dave Holm, District 204's assistant superintendent for finance. "We knew when we made a decision for all-day kindergarten that we'd have a one-year deficit situation caused by that decision, knowing that it would flip and become a revenue producer for us next year and on."
Holm said that shortfall is actually $2 million less than the district projected in March, and $1 million less than advertised just this June.
Funding for the program will come from state revenue that is expected to exceed the outstanding costs associated with starting the program within three years. Each year, the district anticipates it will receive an additional $2 million in state funds above the $6 million cost of the program.
Despite the $2.2 million deficit for the year, the district still expects to have a $75.8 million operating fund balance at year's end. That equates to 27 percent of its operating budget. The Illinois State Board of Education encourages districts to maintain balances of at least 25 percent.
In total, the district expects to incur $388.3 million of expenses this year; $116.6 million of that will go toward debt service and capital projects, such as the construction of Metea Valley High School. It expects to pay $30.2 million toward these sorts of expenses this year, leaving its nonoperating funds with a $38.3 million balance.
A budget hearing will be scheduled for Sept. 22, and a vote to approve the budget will follow that hearing.