Frightened about diminishing cash reserves, the Waukegan Community Unit School District 60 Board of Education approved a budget with a $30.3 million deficit, but not before receiving assurances that a plan will be in place to increase cash reserves over the next four years.
For the past few months, the district made an effort to cut spending to avoid a larger deficit. With a deadline imposed by the Illinois State Board of Education to approve a budget by Sept. 30, action was necessary.
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Set to vote on a multi-year budget stabilization and fiscal sustainability framework resolution for future years after approving the budget, board member Rick Riddle was among those who sought certainty.
“It’s no secret I’ve been advocating for a balanced budget that does not draw down savings,” Riddle said.
Superintendent Theresa Plascencia said during the discussion some flexibility was incorporated into the resolution because uncertainties are likely to unfold, which will be beyond the control of the administration.
“We don’t know what taxes are going to be, what funding will be there, what grants are going to be there,” Plascencia said. “That was all very transparent when we talked about our budget plan. This (is) our plan, but if money shifted or grants did not come in … we may have to revisit that.”
The District 60 Board of Education voted 7-2 to approve a $317 million budget — $6 million less than last year — for the current fiscal year ending June 30, on Tuesday at the Education Service Center in Waukegan, dipping $9 million less into cash reserves than a year ago.
With estimated revenue from all sources at $286.7 million and expenses forecasted to be $317 million, according to the budget, cash reserves will likely decline from $88.5 million to $58.2 million by June 30.
With the largest chunk of revenue coming from evidence-based funding courtesy of the state at $177.7 million, property taxes will account for $41.6 million, and the federal government is expected to send $29.4 million, according to the budget.
Salaries and benefits for teachers, staff, and administrators are by far the largest expense at $226.3 million, according to the budget. Another $63.1 million will be spent on purchased services, $11.9 million for supplies and materials, with the balance going to capital improvements and other needs.
Anita Hanna, who voted against the budget along with Christine Lensing, said that in her nearly three decades on the board, she remembers when the district had to borrow money and how it worked itself out of the situation. She worries as she sees signs of the past.
“I have not been voting for the bi-weekly financial reports because they were in deficit mode,” Hana said. “I know you cannot keep running deficit behind deficit behind deficit because you have to make up that money somehow.”
Like many other school districts in Lake County and across the nation, Polk said District 60 received a financial boost during the coronavirus pandemic when it received $80 million in Elementary and Secondary School Emergency Relief (ESSER) funds. It made budgeting easier.
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“Now we’re back to where we were before, and we have to pivot back,” Polk said. “I believe the superintendent is committed to making those adjustments because the numbers speak for themselves.”
Approving the budget with concerns, Riddle said he believes the resolution will create accountability for the administration and the board as it prudently moves toward a more secure financial position.
Continually evaluating the financial situation with an emphasis on balancing budgets and increasing cash reserves, district administrators will implement appropriate strategies and regularly report to the board, according to the resolution.
Though the budget stabilization and fiscal sustainability framework resolution was on the agenda for a vote Tuesday, board member Carolina Fabian said she was not satisfied with some of the language. She said achieving financial stability is a collaborative effort with the administration and the board. They are all responsible.
“It is a collaborative decision,” Fabian said. “I would like to see it work like it is more of a collaborative (effort) and once the decisions are made by the board, the administration will communicate those decisions. We have to write in there that we are holding ourselves accountable as a board.”
Joining Fabian and Riddle in voting for the budget were board members Jeff McBride, Angelina Ramirez, and board President Michael Rodriguez.