District 99 Approves 2012-13 Budget, Chips Away at Long-Term Debt

The Board of Education renewed its commitment to paying down long-term debt Monday with the adoption of the district's 2012-13 operating budget.

Board members voted unanimously to approve a $77.8 million budget following a public hearing and a brief presentation by District 99 Controller Mark Staehlin.

Operating revenues are expected to be about $80.2 million, which would have resulted in a surplus of about $2.5 million. However, the district plans to transfer $2.1 million to pay down long-term debt, and another $780,000 to cover critical plumbing repairs at Downers Grove North, giving the budget an overall deficit of $400,000.

The operating fund balance will be $5,165,872 by June 30, 2013, down from $5,565,872 at the beginning of the fiscal year.

"Many schools just look at revenues and expenditures, and we are well in balance in terms of revenue and expenditures," Staehlin said. "But we made a commitment to take care of debt service through our operating fund, which many schools don't think about doing."

The nearly $5.2 million in reserves represents 6.4 percent of revenue, which still exceeds the 3 percent benchmark that would require the board to establish a corrective action plan, Staehlin said.

The biggest expense—nearly $51.8 million—comes from salaries, which account for 78 percent of the budget.

This year, six additional full-time teachers were hired to lower the district-wide pupil-to-teacher ratio, provide support in reading and math, and increase staffing for special needs students. The cost of the new positions was about $330,000.

The cost of new teachers, combined with a slight salary increase for ongoing staff, brings the budgeted net increase for salaries to 2.6 percent. The average increase for all benefits combined is 2.3 percent.

In District 99, property taxes continue to be the largest single source of revenue, representing 83 percent of the total operating fund income. This year, the total revenue is expected to increase by 2.1 percent, with property tax revenues increasing by 2.2 percent.

State aid, which represents 7 percent of total operating revenues, is expected to hold steady. Reductions made in several mandated categorical aid areas are expected to be offset by increases in special education program reimbursements, Staehlin said.

To view the adopted budget, visit www.csd99.org.

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