Budget Savings Recommendations
Deficit Problem
Moline School District No. 40 is currently in a deficit in the Education Fund due to several revenues sources (EAV, Corporate Personal Property Replacement Taxes, Categorical Grants, and the General State Aid payments) that have been reduced as a result of national and state recessions.
• The Education Fund deficit for the current 2009-2010 school year is estimated to be $6.5 million
• If nothing changes, the 2010-2011 projected deficit will be $7.5 million
District’s Plan
Moline School District No. 40 has created Phase I and Phase II proposals to consider as part of a deficit reduction plan. The strategy includes cutting costs to create a sustainable budget without a tax rate increase. Below are the Phase I and Phase II Budget Savings Options, provided by the District’s administration to the Board of Education, at the February 8 meeting.
• 2010-2011 Budget Savings Options
What Now?
Superintendent Cal Lee, the Cabinet, administration, bargaining units, and the Board of Education have worked together to produce a strategy to cut costs with the following guiding principles:
• Maintain the integrity of the PreK-12 instructional program
• Maintain the safety of all students and staff
• Minimize the impact of reductions on direct services to students
• Reduce services and programs rather than eliminate them
• Reductions should be ‘shared’ by all members of the District
Superintendent Recommendations
Superintendent Cal Lee presented the attached recommendations to better align future expenditures with anticipated revenues for the 2010-2011 School Year. The savings represent a total of $3.63 million in the Education Fund. These savings will reduce the projected deficit from $7.5 million to about half or $3.87 million. The remaining $3.87 million will be drawn from the existing Education Fund Balance.
Dr. Lee’s proposed cuts highlighted during the February 22, board meeting were: to not replace an administrative cabinet member for curriculum and instruction, who is leaving the district; not replace seven retiring elementary teachers and special education staff members; reduce travel budgets and programming; eliminate Band/Orchestra at 5th Grade, and phase out German language classes at the high school. Bargaining units also agreed to $1 million in contributions to the district's group insurance. The cut will not result in higher premiums for employees, but will reduce the fund from which claims are drawn against.
Below are the links to Dr. Lee’s presentation and recommendations to the board.
• Superintendent’s Budget Savings Presentation
• Superintendent’s Budget Savings Recommendation
Board’s Final List of Savings
At the March 8 meeting, the Board of Education discussed the Superintendent’s Budget Saving recommendations as was presented at the February 22 meeting. After careful deliberation, debate and conversation, the Board of Education decided on a total of savings $3,876,265 ($3,536,749 in Education Fund and $339,516 in Operations & Maintenance Fund). Below are the recommendations:
In late spring, a proposed 2010-2011 school year budget with the approved budget savings will be presented to the Board of Education for their review prior to the beginning of the school year.
What Can be Done to Restore Cuts?
You can weigh in on the State Budget by taking advantage of the opportunity to let Governor Quinn and the State Legislators know how you feel about the State’s budget crisis and its affect on our schools.
Community members, along with legislators, are invited to make written budget recommendations to the Governor of Illinois at www.budget.illinois.gov.
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