At the August special meeting, the Flossmoor School District 161 Board of Education discussed the best way to handle a potential budget surplus.
Associate Superintendent Frances LaBella presented the budget proposal, emphasizing that it is a roadmap based on assumptions rather than actual figures. The budget’s revenue sources include local property taxes, state funding, and federal grants. Notably, the 2023 property tax bills saw an unexpected increase due to higher new property values, fully funded bonds and a 5% Consumer Price Index (CPI) adjustment leading to a total extension increase of approximately $1.6 million.
The Illinois legislature passed the Property Tax Extension Limit Law (PTELL) to limit property tax increases. The law sets levy increases to the lesser of 5% or the Consumer Price Index. La Bella said it was only the second time the tax adjustment was capped at 5% since the adoption of PTELL in 1991.
A significant concern raised during the meeting was the shift in the property tax burden from commercial to residential properties. This shift, attributed to the Cook County Assessor’s reassessment and subsequent appeals, resulted in residents bearing a more significant portion of the tax burden than nonresident commercial entities.
The proposed budget for the 2024-2025 school year anticipates $48.4 million in revenue and $47 million in expenditures, excluding construction costs. This results in an operating surplus of nearly $1.4 million. However, when accounting for construction expenses, the budget shows a deficit of $1.2 million.
LaBella presented two budget options for 2024, including implementing a flat levy, or applying a 3.4% CPI increase and allocating the surplus to facility planning. Board members have occasionally discussed expanding the district’s early childhood education program.
“Let me throw this out there,” LaBella said. “If you build the Early Childhood Center, you must staff the Early Childhood Center, and that’s an ongoing big ticket item.”
LaBella encouraged the board members to spend some time considering the options. They will continue budget discussions at the Sept. 9 meeting. A public hearing and final budget adoption are scheduled for the Sept. 23 meeting.
According to LaBella’s presentation, the district’s expenditures per pupil range from $16,332 at Western Avenue School to $19,934 at Flossmoor Hills School. Most of the budget is allocated to salaries and benefits, accounting for 60% of total expenditures. Other significant expenses include services and construction costs.