Promises, Promises: Why D210 Can't Rely on State Funding
School districts like Lincoln-Way D210 continues to figure out how to deal with a state that isn't delivering on its aid guarantees.
Here's a neat trick: Next time you're in the company of an Illinois school official mention the General Assembly and be prepared for an earful.
For the past few years, school districts have been struggling to find ways to deal with the challenges of state aid and the budget. Yes, the money districts have come to expect is dwindling as Illinois still works its way out of the recession. But what's more frustrating to officials is that even the funds promised to them are vanishing or slow to appear in district coffers.
"My problem is with the state," said Lincoln-Way High School District 210 Supt. Lawrence Wyllie. "Things down there are so different than they've ever been. We're going to have to live with a different kind of state aid."
That's part of the reason why Wyllie and the D210 board of education unveiled a variety of possible budget cuts and fee increases last month as a way to deal with the changing financial landscape.
We break down some of the obstacles facing districts when it comes to state aid.
What has the state done with school funding?
Cut it. Dramatically.
In 2011, Gov. Pat Quinn slashed $269.4 million for education from this year's state budget. And that, of course, has a ripple effect for the districts. Last year, D210 received about $9 million in general state aid. This school year, it will be $8.7 million and will continue to drop over the next five years.
"Can we operate with less money?" Wyllie said. "We're going to have to figure out how to do that."
If it's just less money, why doesn't the district budget for it?
One of the frustrating aspects for administrators is that they don't always know how much money to expect from the state.
During the budgeting process, the state might indicate to districts that it's only funding 96 percent of certain aid. But later, officials are told that the percentage is changed to 90 percent, said D210 board President Arvid Johnson.
What is the state's problem?
Huge deficits have caused Illinois to unofficially adopt a financial policy of paying its bills late, forcing school districts and others relying on state aid to figure out how to make ends meet in the meantime, according to the Associated Press.
Last year's state income tax increase was passed as a way to raise money to pay off the backlog of bills, but that hasn't worked out that way, Wyllie said.
As of January, D210 had yet to receive any of its promised mandated categorical funding from the state, Wyllie said. Categorical funding is the state aid that goes toward paying for programs required by Illinois.
If the money is coming, can districts cover it temporarily?
The district could see tax anticipation warrants, Johnson said, comparing the note to a payday loan that is repaid when the district receives its funding.
Although tax anticipation warrants don't have the outrageous interest rates of payday loans, they still require the district to pay for money that it should already have, Johnson said.
What about district reserves?
This is something D210 has been doing for the past few years, but it has its limits. The district has about $24 million in reserves, and school districts try to maintain at least 30 percent of their operating budget in reserves. However, D210 currently has only 24 percent. Reserve numbers also have gone down thanks to decreasing interest rates, Wyllie said.
"You build reserves for the unplanned problems," Johnson said. "You don't build reserves for the planned problems."
Jo Ann Gindville
2:31 pm on Monday, February 6, 2012
Is there anything that we can do as taxpayers/parents to make the State pay what is owed? It seems almost illegal to be able not to pay what has already been promised.
Dan
2:56 pm on Tuesday, February 7, 2012
Here we go------more excuses and deferring responsibility by an administrator. The problems of funding can be corrected locally without property tax increases and extra and new fees to parents. It is unfortunate that past and present board members have accepted this type of behavior of continuously blaming something or someone else for the districts financial problems but yet when things are going good take responsibility for them. Hopefully the present board will come to grips with this and start informing the taxpayer and parents that the present labor agreement is unsustainable, including the direction the board and administration is going to take with regards to their and the community taxpayers upcoming negotiations with the teachers association. (union).
Donny
4:31 pm on Tuesday, February 7, 2012
@Dan-how can the funding problem be corrected locally without property taxes increases or raising fees/new fees? I'm not being sarcastic, I think it would be good to get any ideas out there-and I'm sure sending them to the board couldn't hurt.
Karen Schultz
8:15 am on Saturday, April 7, 2012
Unions must be removed from public service sector because that is what it is...public service. This is a choice people go into because they care and are passionate about the purpose they serve and that comes before $$$. So why has a union been put in place. The parents must make a decision about unions serving their children rather than than those who want to truly serve the student as a citizen instead of a person interested in salary and perks first. Teachers should live in their district for the same reason...they care about the individuals and the culture and employability in their community. Yes, I have worked in education and they wanted me to join the union. Please take a look at Wisconsin and what the union is doing to the Governor of Wisconsin that has done nothing but great things for the state. "Walker and the GOP majority ended the union compulsory dues racket, allowed workers to choose whether to join a union, curtailed costly bargaining rights and enacted pension and health contribution requirements to bring the government in line with private-sector practices. The Walker reform law helped prevent massive layoffs in public education by saving tens of millions of dollars in bloated benefits bills. Ending the state union monopoly on teachers’ health insurance plans allowed dozens of school districts to switch their coverage to more competitive bidders."Michelle Malkin http://www.tysknews.com/Articles/dnc_corruption.htm
Russ
4:01 pm on Saturday, April 7, 2012
Karen, last time I looked, people that work in public service jobs get a paycheck.No matter how passionate a public servant is about their job, they still have to pay bills. The superintedent said his biggest problem was with the state :
My problem is with the state," said Lincoln-Way High School District 210 Supt. Lawrence Wyllie. "Things down there are so different than they've ever been. We're going to have to live with a different kind of state aid."
He didn't say his biggest problem was the unions.
Over a million people in Wisconsin disagree with your Walker opinion and they are going to try to vote him out in the June recall.The Wisconsinites understand the importance to keep their union barganing rights, which is why they have been fighting for over a year to win them back
Mokena Mike
11:02 pm on Saturday, April 7, 2012
Why do kids even need to go to school? I just saw The Hunger Games and I think a similar system could be set up in our community...