Happy New Year!  I wish all of you good health and prosperity in 2010.     

January signals the start of the budget process for the 2010-2011 school year.  The budgeting process includes projecting enrollment, staffing, revenue, and expenditures for all of the district's schools.  Kindergarten registration is scheduled for early February to try to project how many new students we can expect in our elementary schools for the next school year. This is not an exact science due to move-ins to the district and families who may not be familiar or aware of the registration process for a child entering our school system for the first time.  The projections for the existing students in our schools are somewhat more accurate because those students advance one grade level.  These numbers are still subject to fluctuations depending on who may move into or out of the district.  However, historically, this procedure has provided us with a reliable process to make accurate staffing decisions for the district's budgeting process.

The second step in the process occurs in mid-February. District and building administrators meet to discuss staffing for each building. Enrollment projections for our elementary and middle schools established in January are reviewed and specific needs of each building discussed.   The high school staffing is determined by reviewing both the enrollment projection and the number of classes for which students have registered.  Once these conversations are completed, staffing recommendations are made to the Board of Education.

The next factor that is considered in the budgeting process is an analysis of the amount of money the district will realize as revenue and analysis of our projected expenditures for the 2010-2011 school year.  Approximately 75% of our revenue comes from property taxes.  The district levies taxes on the district's homeowners each year.  The amount that the district can levy is based upon a formula that employs the Consumer Price Index (CPI).  The formula determines a percent over the previous fiscal year the district can levy in taxes for the following year.  When last year's CPI was .01%, that meant that the district would essentially only be able to levy the same amount as the previous year.  This resulted in the district's revenue being the same as the previous year, no increase.  The district knew that the expenditures would increase for the following year, but revenue would not.  This scenario resulted in last year's budget cuts that reduced our expenditures.   The Bureau of Labor Statistics announced this morning that the CPI for fiscal year 2009 is 2.7%.  Although this higher CPI is more favorable to the budget, the district must continue to monitor expenditures.  This increase in CPI will not provide CUSD 95 with a projected budget surplus.

It is important to acknowledge the reasons why the increase in CPI does not give the district a "surplus." Personnel salaries and benefits make up approximately 61% of the district's expenditures.  The district has contractual obligations that will increase our certified personnel expenditures over the next two years, including approximately a 4% increase this year.  Our buildings are in need of roof replacements, repairs, and upgrades; not to mention supplies and books that are needed to provide students with quality learning experiences.

By working collaboratively, staff, community, district administration, and the Board of Education have done much to hold down expenses.  Staff has been using less energy by turning off the lights and computer when leaving the classroom.  School newsletters are now being distributed electronically.  The middle schools and high school will be distributing report cards and schedules electronically starting second semester.  These changes in procedures will help reduce the district's paper costs. Additionally, the district has contracted with a new paper supplier realizing between $10,000 and $15,000 in savings this school year. The district has also secured contracts for energy that will cut our energy costs.  The district will save approximately $160,000 in electricity this year and between 5 to 10% savings in what we expended for natural gas last year.   The district is committed to continuing to find ways to reduce operating expenses.

Based upon the district's financial projections for the remainder of this school year and next, if budget reductions are necessary we hope to continue making operational reductions without cutting personnel.  The district's ability to maintain current staffing is also dependent on us not experiencing a catastrophic event (boilers failing, roofs springing leaks), and on the State of Illinois living up to its financial obligations to schools.  These are just some of the budget factors that are still unknown.  The next two months are very critical in determining our financial viability for the 2010-2011 school year.  I am cautiously optimistic. 

I will continue to keep you updated and informed regarding the budget process.  We will continue to be fiscally responsible to ensure that District 95 will continue to be able to provide students with the challenging and rigorous learning experiences that we are known to provide.