Indian Prairie School District 204 expenses are expected to grow by $62 million to more than $440 million over the next five years, according to Chief Business Official Matt Shipley.
Despite that, district revenue should be able to keep pace and budgets should remain balanced, said Shipley, who presented an analysis of the D204 financial picture to the school board Monday.
District expenses for the 2021-22 school are budgeted at $378 million, with income expected to be about $379 million. By 2026-27, expenditures will be about $440 million and revenue about $441 million, he said.
That said, there are a lot factors at play right now — inflation, funding sources, labor shortages and others — that could cause the numbers to shift, Shipley said. The consumer price index used to gauge inflation — and determine the district tax levy — is at 7%, its highest level in 30 years, he said.
Property tax extension law limits growth to either 5% or the consumer price index, whichever is lower.
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Because the CPI rate is above 5%, school districts will get the highest extension possible for the first time since the law was adopted, Shipley said. But Indian Prairie will miss out on about $6 million in additional property taxes because 2% of the CPI rate is above the cap, he said.
Inflation is impacting how much they spend on supplies, capital projects, fuel, natural gas and utilities, Shipley said. For example, the district spends more than $4 million a year for heat and electricity, he said.
“Despite these challenges, I will point out that the district is currently within budget for the school year,” Shipley said.
Current and future staffing shortages could also play a role in pushing up expenses, he said. While unfilled positions reduce the amount spent on salaries, it is offset by overtime costs, substitute pay and hiring contracted service providers to fill the gap.
The district also will be negotiating new contracts with teacher, support staff and transportation provider unions this year, he said.
Short-term state funding should be strong, Shipley said, noting that the proposed state budget raises evidence-based schools funding by $300 million, increases school categorical payments by $93 million and contains no pension cost shift or property tax freeze language.
Indian Prairie, cited in Shipley’s forecast as the third-largest district in Illinois, is about 83% adequately funded, up from 80% four years earlier.
About 90% of evidence-based funding available since 2018 has gone to other districts that are less adequately funded, he said.
“Although some of these bullet points look like good news, and relatively speaking are good news, we still operate under a system that does not adequately fund or equitably fund education,” Shipley said.
Board member Justin Karubas said state lawmakers will need to hear from the district soon should there be changes to school funding.
“This board is going to need to shift its focus to Springfield, local advocacy with our representatives to make sure if changes are made, they’re made with our board at the table,” he said.
Indian Prairie will continue to benefit from additional federal funding resulting from COVID-19. Another $8.5 million is earmarked for the district in fiscal years 2023 and 2024, Shipley said.
That relief money has helped them reduce class sizes in grades K-2, hire districtwide coordinators and coaches/interventionists, add programming, and hire more nurses and contact tracers, he said.
Despite that, the money Indian Prairie has received is less than what other large districts in the state have received, he said.
“It is very difficult to look at those (relief) funds and see how we were impacted,” board member Susan Demming said. “Every time it comes up, it does get me a little upset.”