Local News

District 153 balances budget with referendum funds

The fiscal year 2021 budget for Homewood School District 153 shows a deficit of $1.9 million, but the school board unanimously agreed to balance the budget by using funds the community approved for its schools in a 2016 referendum.

Chief School Business Officer John Gibson outlined the budget at the school board meeting Monday, Sept. 14. He said the operating budget is estimated at $22.78 million and expenses are projected to be $23.68 million. The operating fund balance, which includes money from the referendum, stands at $12 million. Gibson recommended the board spend down that fund by $2 million to cover the deficit.

Schools are primarily supported by property taxes and state financial aid. The 2008 recession saw property values drop, reducing the amount of money collected through property taxes.

Then, the district got reduced state aid for several years. It was a double whammy for the district’s finances, and the school board turned to voters for help in balancing its books. The $9 million referendum question passed in 2016 with 80 percent approval.

As he prepared the 2021 budget, Gibson saw the district is showing a reduction in property tax collection. The district usually collects 98 to 99 percent of what is owed in taxes, but this budget shows tax revenues dropping to 93 percent. Tax revenues are the biggest source of revenue for the district.

The state funding is the district’s second biggest revenue source. Gibson said general state aid and evidence-based funding will be relatively flat. The district should receive $6.68 million.

While salaries are increasing by less than expected, Gibson said he’s noticed a number of the district’s staff have converted their health insurance from individual to family plans which raised the district’s costs. Transportation expenses are down, but maintenance costs are increasing slightly as staff does some repairs at Willow, Churchill and James Hart Schools while classrooms are empty.

The district is expecting to receive reimbursement for personal protective equipment and cleaning supplies through the Illinois Emergency Management Agency, which is sharing revenues from the Federal Emergency Management Agency.

Gibson said the district is waiting for word from the Illinois State Board of Education on whether it will continue to provide revenue for school bus companies. When schools shut down in March, the state helped districts cover some of the bus contract expenses for the last three months of school.

While District 153 isn’t using bus service now, Board President Shelly Marks said she sees it as a conundrum. The district will need bus service eventually, but she fears bus companies will fold if they don’t get some financial support.

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