Lyons Township High School reports its finances are much better than expected, given the economic impact of the pandemic.
In August and September, district officials anticipated the budget for the current school year could end with a deficit as large as $1.9 million, because they were so unsure of the coronavirus’ effect on revenue sources, such as state funding and interest on investments.
But six months into the school year, the trend is moving in the right direction, LTHS Director of Business Services Brian Stachacz said.
From July through December 2020, the school district had received nearly $38,957,000 in revenue, compared with $38,686,000 in revenue collected during the six month period ended December 2019, before the coronavirus began affecting the United States.
When compared to the $34.6 million in expenses paid through Dec. 30, 2020, the district revenues have exceed expenses by about $4.3 million so far this school year. But that does not include the anticipated $1 million cost of buying Chromebooks for all the students.
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“The state has continued to make all its payments to us,” Stachacz said. Through the end of December, LTHS received $1,561,234 from the state government, only about $15,000 less than at the same time last school year.
“Interest rates fell off the table in April and May,” Stachacz said, but by December, the high school’s interest earnings were ahead of the budgeted amount.
LTHS had budgeted $300,000 in interest income, but already had received between $407,000 and $408,000 in interest through the first two quarters of the fiscal year, he said.
That’s a good sign, but there are no guarantees, Stachacz said. Long-term investments are generating some of the interest. When they mature in the next year, depending on the market when the district reinvests those funds, the rates may be much lower, he said.
LTHS also has lost out on about $500,000 in revenue from food sales in the cafeteria, because students are not buying lunch in the cafeteria. On the flip side, the district is saving on expenses for operating the cafeteria, Stachacz said.
Transportation costs, too, are way down as all students started the school year learning remotely at home. Some students transitioned to a hybrid model in the fall, in which they attended school two days a week, but in November, as the COVID-19 infection rate climbed, LTHS switched back temporarily to all remote learning.
As a result, there were weeks when no school buses were running and the financial statements reflect that. As of the end of first semester in the 2019/2020 school year, LTHS had spent $1.4 million on transportation. As of Dec. 30, 2020, the school district had spent only $262,000 on student transportation this school year, Stachacz said.
However, if more students choose to come to school in the hybrid schedule in the spring, more bus routes might run and transportation costs would start to climb.