Facing a $2.5 million operating deficit in its education fund next year, District 97 public elementary schools are looking at slicing some $645,000 in spending while the prospect of a tax hike referendum looms larger.
The Oak Park school board listened at its meeting last week as its finance chief suggested an array of administrative budget cuts that will reduce, but not eliminate, its operating deficit. Gary Lonquist, assistant superintendent for finance and operations, recommended the district adopt spending plans at its Dec. 14 school board meeting which would result in an operating deficit of $1.84 million in the district’s education fund, its largest fund.
The school board also held a public hearing on its proposed property tax levy for next year. The district is seeking to raise $44,279,117 in property taxes for 2006 which represents a 1.74 percent increase over last year.
Lonquist also presented the board a list of “expenditure reduction options” the district could make this fiscal year. The cuts are mostly administrative expenses, but also include reducing or eliminating district subsidies to the performing arts programs BRAVO and CAST at the two middle schools.
Other savings possible this year include skipping a monthly contribution to the district’s health insurance fund in the spring if reserves are in excess of budgeted amounts. Last spring the district did this and saved $190,000 by skipping one month’s contribution. The district may also transfer surplus funds in other funds to the education fund. Last year the transportation fund realized a surplus of $65,000.
Lonquist said he believed the district could find $645,000 in cuts next year without having a severe impact on core educational programs.
“I don’t think this is an amount that will cause massive disruptions programmatically,” Lonquist said. But further cuts beyond that level would be difficult to make and could seriously impact core programs, Lonquist said.
“There’s not much left to play with,” Lonquist told the board. “We’re going to have to pay fewer people or buy less things. It’s not easy to take anything out. We don’t do any bad programs. If we want all these programs then we better go get a referendum and pay for them.”
Board member Dan Burke said he was comfortable making cuts of $645,000. “A 1.4% reduction off a $45 million budget is doable,” said Burke. “I’m loath to go deeper at this point.”
Board member Michelle Harton said she would not favor making aggressive cuts before the district completes its strategic planning process which is just beginning this week when consultants will begin interviewing school board members and key administrative personnel.
Julie Blankemeier, a board member, agreed the board should not consider cuts beyond the $645,000 amount until the strategic planning process is completed in the spring.
“Next year would be the year for huge programmatic changes,” Blankemeier said.
However board member Sharon Patchak-Layman said the district must learn to operate with the revenues provided and was uncomfortable with continued deficit spending.
In the discussion, though, it seemed clear the full board realizes the current path of deficit spending is unsustainable in the long term.
“After this year we’re running out of reserves,” said board President Carolyn Newberry Schwartz.
If deeper spending cuts are necessary in future years the board may have to consider eliminating teaching positions.
Felicia Starks Turner, the district’s director of human resources/development presented a report on enrollment and class size to the board. According to Starks Turner District 97 enrollment has dropped from 5,116 students enrolled in June, 2000 to 4,977 as of June 2005, a decline of just under 3 percent. As of Nov. 1, 2005 4,982 students were enrolled in District 97 schools.
Average class sizes in the district’s elementary schools vary, ranging from a high of 21.7 at Beye School to a low of 18.5 at Hatch. If class sizes were allowed to increase to a range of 22 to 24 students per class the district could cut 15 teaching positions and save around $500,000, Starks Turner estimated.
“We’re getting to the point where cuts aren’t so easy to make and it may be easier for the community to accept slightly larger class sizes rather than program cuts,” said board member Marcia Frank.
