Summary of Budget Management Efforts
Educational Fund
FY 2002-03 to Present

District 97 has been working to manage deficit spending since the 2002-03 school year. During that year, the Board initially adopted a budget that projected the use of more than $7.6 million in Educational Fund balance reserves. The Board enacted a $500,000 expenditure reduction ($489,089 in the Educational Fund- the District's main operating fund) and convened a Financial Advisory Task Force to study the District's finances and make recommendations to achieve financial stability. The Task Force proposed financial management guidelines that were adopted by the Board as policy in May 2003. The Task Force also proposed options for the Board to increase revenues and reduce expenditures in future years. The Board convened a Finance Advisory Committee to December 2005 to reassess the district's financial picture, and to provide recommendations regarding both appropriate expenditure reductions and the identification of appropriate revenue requirements. These recommendations have resulted in the following Board actions to date:

Revenue Enhancements

Intergovernmental agreement to release properties from the Village Tax Increment Financing (TIF) Districts to add "new properties" to the property tax extension base has resulted in more than $2.5 M in property taxes property.

Intergovernmental agreement to provide the District with $4.0 million in operating revenue during the period December 2004 to December 2007.

The District established the Legislative Advocacy Committee in 2004 to lobby for additional revenue from State sources. Adding our District's voice to those of others across the State and nation in has increased [our state funding] by $2M since July 2004.

Re- establishment of materials and co-curricular fees yields an average of $300,000 annually since fiscal year 2004.

Expenditure Reductions

FY 2002-03
Administration - reduced budgets for expenditure categories including equipment, supplies and materials, staff development, consulting and printing, technology, Multi-Cultural Resource Center ($176,742).

Schools/Other - reduced budgets for expenditure categories including equipment, supplies and materials, staff development, overtime, shift expenditures to grant funds ($312,347).

Total FY 2002-03 reductions in Educational Fund - $489,089.

FY 2003-04
Administration - professional staff (6.5), support staff (3.0), consulting, certified staff stipends, equipment, printing, supplies and materials ($887,730).

Schools/Other - certified staff - elementary schools (17.2), language arts specialist (0.5), certified staff stipends, equipment ($935,284).

Total FY 2003-04 reductions in Educational Fund - $1,823,014.

FY 2004-05
Administration - professional staff (0.4), support staff (1.0), technology supplies, consultants, contract services, technology loan payments, technology equipment, Multi- Cultural Resource Center ($318,562).

Schools/Other - certified staff - middle schools (7.5), teaching assistants, contract services, supplies and materials, FLES instruction time, use Employee Insurance Fund undesignated reserves to fund June 2005 employer and employee medical benefits premium contributions ($1,134,000).

Total FY 2004-05 reductions in Educational Fund - $1,452,562.

FY 2005-06
Administration - support staff (1.0), technology loan payments, textbook replacements, consultants, staff development, contract services ($98,701).

Schools/Other - no structural reductions in either personnel or non-personnel line items.

Total FY 2005-06 reductions in Educational Fund - $98,701.

FY 2006-07
Administration - support staff (3.0), printing, consultants, staff development ($234,200).

Schools/Other - certified staff in elementary and middle schools (5.0), non-classroom certified staff (2.0), support staff (2.0), lunch program staffing costs, supplies and materials ($515,700).

Total FY 2006-07 reductions in Educational Fund - $719,000.

FY 2007-08
Class size ratio for grades 1-5 maintained at 19.5-21.5 and 25-27 for grades 6-8. This resulted in the reduction of 1 teacher at Lincoln and Mann schools, the addition of 1 teacher at Irving and Hatch, and the addition of 2 teachers at Brooks.

$350,000 reduction in the Operations and Maintenance fund due to move to increase in-house repairs of HVAC, electrical and plumbing.

Summary The revenue enhancement and expenditure reduction actions taken by the Board of Education have served to reduce the use of reserves (operating deficits) in the Educational Fund during the period FY 2001-02 to FY 2005-06. Operating deficits in the Educational Fund are shown below. Audited actual numbers for fiscal years 2006-2007 are not available due to problems in the Cicero Township Trustees of Schools Treasurer's office.

FY 2001-02 actual ($3.390m)
FY 2002-03 actual ($5.441m)
FY 2003-04 actual ($1.168m)
FY 2004-05 actual ($1.653m)
FY 2005-06 actual $935,796

The Board has primarily focused on the Educational Fund. It should be noted that close scrutiny of the Operations and Maintenance Fund since Fall, 2006 has resulted in savings and helped to stabilize its balance. This fund includes expenditures for custodial and engineering staff, maintenance and repair supplies and contractual services, building improvements and utilities for the District's ten schools, District Office and warehouse.