The Indian Prairie District 204 School Board finalized a $414 million budget for the 2021-22 school year Monday that includes $9 million in capital improvements and funding for about 28 new full-time positions.
A $6.9 million deficit resulting from the capital improvements planned for the coming year will be covered by using capital fund reserve money so that the spending plan is balanced and in the black, officials said.
School board members unanimously approved the spending plan ahead of a Sept. 30 deadline from the state.
The budget did not change from the document presented for public review last month. It includes $378.3 million for operating expenses like salaries, benefits and overhead costs. The remaining $35.7 million is for non-operating expenses, which includes debt and capital improvements.
Among the projects to be paid for with the $9 million earmarked for improvements are new air-conditioning systems for elementary schools, replacement of classroom smart boards, purchase of new copiers and general maintenance work, some of which was deferred from this year.
“This (capital improvements) fund really has no recurring funding source,” Chief School Business Official Matthew Shipley said. “We’ve built up a pretty significant balance but do not see the opportunity to fund it additionally over the next several years.”
Shipley said he plans to present the board with an update on Indian Prairie facilities before year’s end so members are aware of what future work and purchases will be needed and for which eventual funding will need to be found.
“We expect that presentation to be a little more comprehensive than it’s been over the last several years since we’re coming out of the pandemic,” he said. I think it’s the right time to put in front of the board a more comprehensive, multiyear capital plan.”
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Board member Justin Karubas said it’s not unusual for reserve funding to be used for items that are needed but will put a budget in the red.
“It’s a substantially balanced budget, but it also has an unstated deficit for the capital needs and deferred maintenance,” Karubas said. “I’m glad we’re going to be addressing that in future meetings. … We’ve acknowledged that deficit in the past and we need to work on it.”
The district’s largest account is its operating fund, which is expected to have a surplus of about $505,000 when the budget year ends June 30, 2022. Projected revenue of about $378.8 million will just outpace $378.3 million in operating expenses.
Shipley said operating expenditures have grown by $53 million since 2018. According to the budget, 76% of those expenses go to employee salaries and benefits.
The new spending plan also includes money for about 28 new full-time-equivalent positions. New hires will help shrink the class sizes for kindergarten through second grade and will add more nursing staff and math/social-emotional learning/literacy coordinators.
Shipley said revenue has remained consistent, with property taxes being the district’s largest and most consistent source of income. Because of an infusion of federal relief money to help the district catch up following the COVID-19 pandemic, there will be a number of temporary programs to help students get on track academically and the district recover financially, he said.
Indian Prairie is about 83% adequately funded under the state’s evidence-based schools funding model. Other comparable school districts like Naperville School District 203, Elmhurst District 205, St. Charles District 303 and Barrington District 220 are adequately funded at or above 100%, according to the budget presentation at Monday’s meeting.