Post by WeNeed3 on Feb 25, 2009 8:18:54 GMT -5
Schools hope for best, prepare for the worst
By Tara Malone and Jo Napolitano | Tribune reporters
February 24, 2009
Despite learning that Illinois public schools could receive as much as $3 billion in federal stimulus aid, many of the region's top educators face the next budget cycle as grimly as children in line at a vaccine clinic.
They appreciate the influx of money—which is to start flowing within 40 days—and say it could delay difficult cuts. But they don't know how much they will receive or what strings may be attached, and at any rate, the relief will be short-lived.
"It's going to be a tight year next year and I think it will be a tight year several years after that," said John Prince, chief financial officer of Elgin District U-46. "It certainly isn't a one-year turnaround."
Schools are facing a confluence of recession-related financial woes, including local property tax bases hindered by foreclosures and unpaid bills and the state unable to deliver some of its promised funds. And the trouble could worsen.
The growth of many school tax levies is limited by a cap of 5 percent or the Consumer Price Index, whichever is less. Next year's CPI is expected to fall below 1 percent—much less than the growth of key costs, including energy, health care and previously ratified labor contracts.
Given these financial pressures and uncertainty about how much stimulus money will trickle down, school officials from Elgin to Lake Zurich are preparing pink slips to meet a March deadline to notify union workers.
Plainfield School District 202 hopes to cut spending by raising class sizes and delaying school construction, said spokesman Tom Hernandez. The far southwest suburban district even hired an investigator to root out children who live outside its boundaries.
"The one consistent idea is, 'Don't go counting your eggs just yet.' ... The information is changing from one minute to the next," Hernandez said.
For the first time in six years, Valley View School District 365 in Romeoville will release all first-year teachers and aides in case the economic picture does not improve, said spokesman Larry Randa.
West Aurora School District 129 expects to borrow $5 million to compensate for a shortfall in funding.
Chicago Public Schools spokeswoman Monique Bond said it was premature to discuss specific cuts in the state's largest district but that budgeting was "going to be a challenge."
Under the stimulus plan, the federal government will invest $100 billion in public education by 2011, redefining its role in classrooms nationally and raising its contribution from 9 percent of education funding to about 15 percent, according to the Education Commission of the States.
The bulk of Illinois' portion—nearly $2 billion—is targeted to prevent layoffs and cuts, and will be filtered through Gov. Pat Quinn's office over the next two years. It is not yet known how the money will be divvied up. The state has launched a Web site about the stimulus at www.recovery.illinois.gov.
Most of the rest is dedicated to specific programs, such as those that serve disadvantaged children and those with disabilities.
State Supt. Christopher Koch said the Illinois State Board of Education will track how many jobs are created or saved.
Meanwhile, parents and staff members may hear about the $3 billion coming to Illinois and anticipate a wave of new programs. The severity of the economic downturn makes that unlikely, said Mike Griffith, a financial analyst with the Education Commission of the States.
"The good news is parents likely won't see cuts. The negative news is they're not going to see huge increases in programs," he said. "If you didn't have a state-of-the-art summer school program before, you're probably not going to have one now."
Another reason the money may not make a visible splash is that educators are reticent to use short-term funds for long-term programs. "The additional funding . . . would only delay the projected budget deficits unless it is coupled with some type of school funding reform," said Kris Monn, assistant superintendent for finance at Oswego School District 308.
www.chicagotribune.com/business/content/education/chi-school-pink-slips-24-feb24,0,7380470.story