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State's deficits could leave school to make tough
decisions
Monday's two hour plus school board meeting was dominated by a presentation by Supt. of Schools Kathy Garrett on the
district's financial situation.
Standing alone with the money promised from the state, the Auburn District is as sound as most in the state other than those
with major tax resources such as a power plant, nuclear plant, etc. This allows many of them to have as much as $15,000 or
more to educate each student in their district.
Auburn does not have this luxury but the district has one of the lowest tax rates in the state and has money in the bank. But that
could be wiped out in a blink.
The state has worked its way into a $12 billion hole and is shirking its financial obligations to schools. As it stands now,
almost every school district in the state is going to be forced to meet the reduction in mandated funds with cuts.
"The financial situation with the state is having tremendous negative impact on all school districts and Auburn is no exception,"
says Garrett.
"Our district is financially conservative and we will weather the storm, do what is necessary to sustain a quality educational
system for our students," adds Garrett.
She said that the board has formed a special finance committee of herself, Fred Jessup and Jeff Mortimer. At a later date, a
newsletter on the subject will be mailed to parents of all students.
Before a good sized audience, mainly teachers, Garrett went through a power-point presentation detailing all facts involved.
She opened saying that the state is $12.4 billion in debt and has a backlog of $4.2 billion in paying bills owed to school
districts and other providers (health care, pharmacies, etc.)
While state aid, about $500,000 a month, has been pretty much on time, the state's financial situation could lead to a loss of $1
million before the end of the state's fiscal year 2010. Right now, the federal stimulus bill has allowed state aid money to flow. $1
million of our remaining state aid is tied to a second stimulus bill or money not issued as yet out of the first.
In addition to the potential non-payment, the district is now owed roughly $900,000 in other mandated payments such as
transportation, special education, free and reduced lunch prices, ADA, reading improvement programs, etc.
The district is also owed $530,297 in annexation (Divernon) money for this year with one year to go.
Recently, the district loaned itself $250,000 out of its education fund to transportation.
The sickening situation also comes with the possibility of cuts by the state in such areas as state aid. Presently, the foundation
level, money behind each student, is $6119. But if $150 or $200 or so it cut it could be a possible $535,000 loss to the district.
And, mandated categories, such as transportation, could be reduced up to $620,000.
So, what does that leave the board to ponder and the district to expect, all kinds of reductions, including teaching staff. And, it
also opens the door to look for raises in other areas such as athletic participation and admissions, textbook and course fees,
lunch, CACC cap, delaying textbook rotation purchases, reduce repair and maintenance, eliminate all overtime and extra
custodial help in the summer, eliminate programs and services like field trips, etc.
Also possible (not in any order of priority) are reductions to include Pre-K, PAT and Reading Improvement to the tune of
$400,000. Also, the district could consider reconfiguring its buildings such as placing K-2 in Auburn, grades 3-5 in the middle
school and adding the sixth grade to the junior high, a possible savings of $135,000. This would also eliminate three certified
staff and one SASED plus creating larger class sizes at the lower levels, K-5.
Garrett also injected the words no one wants to hear a referendum to raise taxes within the next few years.
The current educational tax rate is $2.07 per hundred, a tax that has not been raised since the 1970's. The state allows a
maximum tax of $4 which basically would double the tax. The first chance that a tax referendum can be put on the ballot is
November, 2010.
"We are not alone in this predicament," says Garrett. "I just hope to find the answers if we must, answers that do not hurt the
district's ability to do its job and not have to ask the taxpayers for more money. But hat might be wishful thinking. Right now, a lot
depends on the state. We just have to wait and see while making plans for the worst situation," concluded Garrett.
A full presentation will be on the district's web site by the end of the week: http://www .auburn.k12.il.us.
decisions
Monday's two hour plus school board meeting was dominated by a presentation by Supt. of Schools Kathy Garrett on the
district's financial situation.
Standing alone with the money promised from the state, the Auburn District is as sound as most in the state other than those
with major tax resources such as a power plant, nuclear plant, etc. This allows many of them to have as much as $15,000 or
more to educate each student in their district.
Auburn does not have this luxury but the district has one of the lowest tax rates in the state and has money in the bank. But that
could be wiped out in a blink.
The state has worked its way into a $12 billion hole and is shirking its financial obligations to schools. As it stands now,
almost every school district in the state is going to be forced to meet the reduction in mandated funds with cuts.
"The financial situation with the state is having tremendous negative impact on all school districts and Auburn is no exception,"
says Garrett.
"Our district is financially conservative and we will weather the storm, do what is necessary to sustain a quality educational
system for our students," adds Garrett.
She said that the board has formed a special finance committee of herself, Fred Jessup and Jeff Mortimer. At a later date, a
newsletter on the subject will be mailed to parents of all students.
Before a good sized audience, mainly teachers, Garrett went through a power-point presentation detailing all facts involved.
She opened saying that the state is $12.4 billion in debt and has a backlog of $4.2 billion in paying bills owed to school
districts and other providers (health care, pharmacies, etc.)
While state aid, about $500,000 a month, has been pretty much on time, the state's financial situation could lead to a loss of $1
million before the end of the state's fiscal year 2010. Right now, the federal stimulus bill has allowed state aid money to flow. $1
million of our remaining state aid is tied to a second stimulus bill or money not issued as yet out of the first.
In addition to the potential non-payment, the district is now owed roughly $900,000 in other mandated payments such as
transportation, special education, free and reduced lunch prices, ADA, reading improvement programs, etc.
The district is also owed $530,297 in annexation (Divernon) money for this year with one year to go.
Recently, the district loaned itself $250,000 out of its education fund to transportation.
The sickening situation also comes with the possibility of cuts by the state in such areas as state aid. Presently, the foundation
level, money behind each student, is $6119. But if $150 or $200 or so it cut it could be a possible $535,000 loss to the district.
And, mandated categories, such as transportation, could be reduced up to $620,000.
So, what does that leave the board to ponder and the district to expect, all kinds of reductions, including teaching staff. And, it
also opens the door to look for raises in other areas such as athletic participation and admissions, textbook and course fees,
lunch, CACC cap, delaying textbook rotation purchases, reduce repair and maintenance, eliminate all overtime and extra
custodial help in the summer, eliminate programs and services like field trips, etc.
Also possible (not in any order of priority) are reductions to include Pre-K, PAT and Reading Improvement to the tune of
$400,000. Also, the district could consider reconfiguring its buildings such as placing K-2 in Auburn, grades 3-5 in the middle
school and adding the sixth grade to the junior high, a possible savings of $135,000. This would also eliminate three certified
staff and one SASED plus creating larger class sizes at the lower levels, K-5.
Garrett also injected the words no one wants to hear a referendum to raise taxes within the next few years.
The current educational tax rate is $2.07 per hundred, a tax that has not been raised since the 1970's. The state allows a
maximum tax of $4 which basically would double the tax. The first chance that a tax referendum can be put on the ballot is
November, 2010.
"We are not alone in this predicament," says Garrett. "I just hope to find the answers if we must, answers that do not hurt the
district's ability to do its job and not have to ask the taxpayers for more money. But hat might be wishful thinking. Right now, a lot
depends on the state. We just have to wait and see while making plans for the worst situation," concluded Garrett.
A full presentation will be on the district's web site by the end of the week: http://www .auburn.k12.il.us.
Issue Date: Jan. 28, 2010
