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D65 budget plans for recovery

School District 65’s budget predicts revenue will bounce back after taking big hits from the recession. It projects a surplus for next year despite greater expenditures.

The budget, which the school board tentatively approved Monday, projects most revenue sources will recover enough from last fiscal year’s drop to cover increased expenditures.

The district left last fiscal year with a deficit of $1.9 million in its operating fund, largely because the recession sliced revenue from property taxes and state grants.

This fiscal year, the tentative budget projects a 8 percent increase in revenue will overcome a 5 percent increase in expenditures, ultimately producing a $140,000 surplus.

The budget projects property taxes, its biggest revenue source, to bring in 7 percent more cash.

It expects the state to restore grants and programs and predicts a 40 percent increase in revenue from them. Even if grants increase that much, it would still be less than the district expected at the beginning of last fiscal year.

It projects federal aid will increase by 2 percent as a result of allocations from the American Recovery and Reinvestment Act.

The budget does not expect corporate property replacement taxes or other local revenue to recover, anticipating 15 percent and 6 percent decreases respectively.

Meanwhile, expenditures are expected to rise across the board, including a 6 percent increase in both salaries and benefits, reflecting the addition of 11 teaching positions, an additional assistant principal for Haven Middle School, and contractual increases agreed to with the teachers union.

The district plans to increase capital spending 17 percent — including $50,000 for computers and another $50,000 for school furniture.

The board will hold a public hearing on the budget Sept. 21.

Cumulative Summary — Operating Funds

Source of Revenue Tentative Budget Percent of Total Percent of Change to FY’09 Actuals
Property Taxes – Local $71,401,260 75% 7%
Corp. Prop. Replacement Tax $1,788,402 2% -15%
Other Local Revenue $3,781,731 4% -6%
General State Aid $2,705,224 2% 2%
State Aid Categorical $8,330,161 9% 40%
Federal Aid $7,038,405 7% 2%
Type of Expenditure
Salaries $65,627,979 68% 6%
Employee Benefits $11,741,023 12% 6%
Purchased Services $8,773,774 9% 1%
Supplies & Materials $5,510,711 6% 6%
Capital Outlay $655,338 1% 17%
Other Objects/Tuition/Transfers $2,522,086 3% 6%
Termination Benefits $73,211 0% 5%

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