posted: 9-25-09

Board Education approves 2009-2010 Budget

Following a public hearing at its September 24, 2009 meeting, the Board of Education approved the 2009-2010 budget as presented. In accordance with School Code, a public hearing and adoption of the 2009-2010 budget must be finalized by September 30, 2009.

The 2009-2010 budget provides for:

• Local Property Taxes of approximately $195.0 million. This represents a 6.8% increase from the 2008-2009 fiscal year and includes the approved an additional $2.0 million levy abatement in the Debt Service Levy (total of $5.0 million). This amount reflects the second installment of 2008 taxes and first installment of 2009 taxes payable in the spring of 2010. On August 17, 2009, Governor Quinn signed Senate Bill 2125 into law providing for accelerated payment of first installment taxes in Cook County. Historically, the first installment of property taxes has been an estimated amount based on 50% of the prior year taxes. The second installment has reflected the balance of the actual amount due once tax rates are determined in the fall of each year. Beginning March 1, 2010 in Cook County, the amount due for the first installment of property taxes will be 55% of the prior year taxes paid. For individual taxpayers, the result will be an increase in the amount of property taxes paid for the first installment, and a decrease in the amount of second installment taxes paid. For taxing districts, the law change will result in a one-time increase in property tax revenue for the 2009-2010 fiscal year. The budget reflects this recent legislative change and is based on a 2008 levy (2008 taxes payable in 2009) increase of 3.3% from the prior year. While the 2008 levy, by statute, is capped at 4.1% plus new property (total of 4.6%), the overall levy was lowered by abating and additional $2.0 million, from the already approved $3.0 million abatement, to this year’s Debt Service Levy.

• Permanent transfers to the Capital Projects Fund as follows:

  • $2.0 million Operations/Maintenance Fund abatement transfer for planned construction projects.

  • $200,000 of interest earnings from the Debt Service Fund.

• Permanent transfer to the Debt Service Fund as follows:

  • $2.0 million Working Cash Fund abatement transfer for approved Debt Service abatement. Permanent transfer of funds from the Working Cash Fund through “abatement,” pursuant to Article 20 of the School Code, may be made only to the District’s Educational Fund. The District is permitted to transfer from the Educational Fund to any fund of the school district most in need of the fund being transferred, as determined by resolution of the school board (105 ILCS 5/17-2A). Therefore, the proper legal progression of this transfer from the Working Cash must first be made to the Educational Fund, and then transferred to the Debt Service fund.

• Federal grant awards from ARRA and Title 1.

• General State Aid received through both State and ARRA Federal (state stabilization) funds and recorded as both State and Federal funds.

• Salaries and Benefits at Board approved parameters for non-union groups and collective bargaining agreements with all union groups.

• Aggregate increase in operating funds for supplies, purchased services, capital outlay, and other costs within CPI of 4.1% on a FY10 budget excluding newly recognized Federal grant funds.

• Technology improvements for students and staff.

• $8.4 million of construction and building/site improvements in Capital Projects.

• Planned Life Safety projects.

• Maintenance of buildings and grounds.

• Debt service.
  · Student transportation services.

• Pension obligations.

• $5.0 million of contingency amounts spread over the individual funds.

A copy of the 2009-2001 budget is available at: http://www.d211.org/pdf/budget09-10.pdf.
Additional information on the approved budget is available at: http://www.d211.org/pdf/budget_adoption_info09-10.pdf.