Harper Wants Direction on Dealing with $3.2M Deficit
While much smaller than anticipated, the shortfall is still sizable in 2013 and expected to grow annually through 2017, officials say.
The Plainfield District 202 school board will host a special meeting in the coming weeks to deal with a projected $3.2 million operating fund deficit for fiscal year 2013.
While the district’s finances have greatly improved with the ratification of two union contracts, the district is still facing operating fund deficits starting in 2013 and continuing through 2017, according to a profile from the district’s financial advisors PMA Financial Network.
An amended budget approved earlier this month, which includes additional federal E-Rate and Title I grants as well as savings from the teacher’s union and support staff union contracts and non-personnel cuts has helped turn a projected $9.2 million deficit into about a $600,000 surplus for the 2012 fiscal year.
But Supt. John Harper said it is difficult to sustain non-personnel cuts for an extended period of time.
He asked the board to give the district administration direction on how to proceed with the anticipated $3.2 million fiscal year 2013 deficit so they will know if programs or personnel will be cut to balance the budget.
Salaries and benefits make up about 79 percent of the district’s budget. Health insurance is projected to increase 10 percent each year and dental insurance is expected to increase by 5 percent per year.
According to the PMA report, the district is anticipating fiscal year 2014 to be about $630,000 in the red. The district is likely to have a $1.4 million operating fund deficit by fiscal year 2015, a $4 million deficit by fiscal year 2016 and a $5.5 million deficit by fiscal year 2017.
The district is likely to be in the state’s financial watch list -- the worst of four indictors of financial stability -- from 2014 through 2017.
PMA senior financial advisor Scott Smith said the district has a better outlook than it did in the fall, but nonetheless, budget deficits loom.
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Plainfield Community Consolidated School District 202
15732 S Howard St, Plainfield, IL -
Butch
6:36 am on Tuesday, January 24, 2012
You start by pay cuts like in the private sector.
scott
8:55 am on Tuesday, January 24, 2012
can you not read butch, they took a cut with the next contract. quit sounding like some jealous baby and put more thought into it. i for one do not want my kids taught by the lowest bidder. i go to a nice steakhoouse , i don't want a mcdonalds cook here. no offense butch :)
Noreen Rosenbaum Blair
9:14 am on Tuesday, January 24, 2012
How about using the money from the 2 high schools that were never built? I highly doubt they will need them anytime soon. 6 high schools may have been a bit of a reach....
Concerned Parent
11:53 am on Wednesday, February 15, 2012
You have to realize that some money can't be switched from one fund to another. We have money that is specificially designated to building and operations funds from our tax dollars and we can't use is for employee compensation. It's not just one big bank account and we can use and distribute it how we want. Certain money we receive has to be used just for that purpose.
Jay
9:49 am on Tuesday, January 24, 2012
Reported by Patch on 1/10/2012:
"Federal grants not budgeted for in September, savings from union contracts and a 5 percent budget reduction are among the reasons for an anticipated Plainfield School District 202 budget surplus this fiscal year.
In less than four months, the district has turned a nearly $9.2 million deficit into a $557,000 anticipated surplus for the 2012 fiscal year, without cutting staff or major programs, said John Prince, assistant superintendent for business and operations."
It's simple......keep cutting the budget and hope for some additional Federal Grant Money. They did it this year, surely they can do it again next year. Does anyone involved with the School District, from the Administration Staff to the School Board have any background in Accounting?
Tax Payer
11:06 am on Tuesday, January 24, 2012
Jay- The board and the administration are asleep at the wheel.
Concerned Parent
11:49 am on Wednesday, February 15, 2012
I think we really need to take a look at every non teacher position and see if it is really necessary to have them and how we can we change something and still make it work. We have more nonteaching misc. Adminintration employees than other districts that are just as large as us. Maybe we should be branching out to them and see how they make it work. We are top heavy. Do we really need some of these employees. I am afraid some of these positions were created because times were good, we had money and to make others lives easier. Nows the time we demand the best from everyone if they want a job. Time to bring your A game - your either in or out.
Miguel Sanchez
1:47 pm on Wednesday, February 15, 2012
Are district employees required to live within the district they serve?
Vera
10:37 am on Thursday, February 16, 2012
Only the superintendent