Valley View Board OKs Budget with $7.2 Million Deficit

board members approved a $246.3 million 2011-12 budget last night, signing off on a financial document that shows little change in spending since last year.

The bad news is that the budget still shows a $7.2 million deficit. The good news is that some unexpected state funding and a decrease in some expenditures helped whittle it down from a projected $7.9 million since last month, according to Assistant Superintendent of Administrative Services Gary Grizaffi.

Focusing on the positives, Grizaffi also noted that the $7.2 million shortfall, which will be offset with reserve fund monies, is a “worst-case scenario,” using the most conservative estimate of anticipated revenues for the upcoming year.

Since Grizaffi presented a draft version of the budget on Aug. 8, he said new estimates show the district receiving an additional $1.4 million in special education funding. State transportation funding is also expected to increase by $277,000, money Grizaffi called “much-needed revenue,” since state cuts over the last few years have caused the district’s transportation fund to dwindle from $7.5 million to $1.7 million.

However, while the district is in line to receive additional revenues in some areas, General State Aid (GSA) is projected to decrease by $2.45 million compared with last year. That’s less than Grizaffi predicted last month, when a draft version of the budget showed a roughly $2 million decrease in GSA over the previous year.

The decrease, which slashes an additional $396,000 of the district’s per-student funding, is the result of the cash-strapped state of Illinois deciding to pro-rate GSA allocation at 95 percent, Grizaffi.

In addition, the state owes the district $4.4 million in overdue payments for special education, free lunch and transportation reimbursements.

“Based on current economic indicators at the local, state and national levels, we should not expect to see any real funding reform or relief in the near future,” Grizaffi wrote in a budget summary submitted to the board.

Some 2011 budget highlights:

• This year’s overall spending is estimated at $246.3 million, compared with last year’s $246.8 budget
• Education fund expenses, including salary and benefit costs are estimated at $188,370,695, compared with $188,098,740 spent last year

To read Grizaffi’s complete budget report, click here.

Prior to the vote, the board opened the floor for comment during a public budget hearing. No residents spoke up during the hearing, and the board voted unanimously to pass the budget.