North Greene Officials Explain District’s Finances

March 25, 2010

 WHITE HALL – The North Greene School District will take a hit to its financial reserves because the School Board resolved not to lay off faculty and staff or eliminate any programs.

About 10 people attended Superintendent Les Stevens’ Forum on Finances on Monday evening to hear about where the North Greene district gets its money and why it isn’t receiving those funds now.

The district relies on 29 percent of its funds to come from local revenues – primarily property taxes. This is substantially lower than most districts, which in general rely on about 44 percent.

The district receives about 20 percent in federal funds – about 10 percent more than most districts – through its American Recovery and Reinvestment Act grant.

The school also receives $114,983 in Title 1 money, which helps with operating costs for the district because of its poverty count; $232,114 for special education; and about $298,000 for expanding technology and train ing in that field.

The federal government also paid for the last three payments owed to the district in general state aid for the 2009 fiscal year.

Officials said 52 percent of the district’s funding comes from the state, which is heavier than most school districts, particularly in Illinois.

Because the district is considered property-poor, it relies more heavily on general state aid, Stevens said. The Illinois Constitution says the state is supposed to fund its schools 50 percent, which it never has done.

Because the North Greene district relies more on state aid, it receives closer to that amount than other districts, receiving about $4,230 per student in general state aid. It is supposed to receive $6,119 per student.

Only three other districts in the region make more than $4,000.

"Generally speaking, that has worked well, but the state’s broke now," Stevens said.

When the North Greene School Board planned its budget for the 2009-2010 fiscal year, it anticipated a loss of $610,373 by June 30, 2010, after comparing projections in income and operating costs.

In spite of that projection, the school district still has about $3.3 million in reserves.

District officials intend to cut back on spending by reducing its purchase of supplies, but the estimates are that it will dip into its reserves probably more next year than it already has this year, Stevens said.

If the revenue streams don’t pick up by the end of next year, the district probably will have to look at layoffs, Stevens said, "and that’s going to hurt k ids."

Stevens predicts that Gov. Pat Quinn’s proposed budget will not happen, but the General Assembly is opposed to raising taxes, so there will be significant cuts next year to the budget. Stevens said he expects the General Assembly will come up with a six-month budget and then propose a tax increase in January, after the November elections are out of the way.

"I have to balance my time being a manager and being a leader," Stevens said. "More mandates means more management. I’m not opposed to more work but, if I have to, I would like to do it more on the leadership end.

"We’ve got to improve our schools, and I’ve got to get out and meet with principals and teachers," he said. "We are doing wonderful, but we can do better by rolling up our sleeves. I can’t do that by spending all my time managing papers for the Department of Redundancy Department."

Doug Early, a parent who attended the meeting, said he is extremely worried that the district may lose teachers who can provide a good education for his two sons.

"It looks like the year after next is where we’re going to be in trouble," Early said.

Early attended school in the district as a child. His wife, Michelle, has been a full-time teacher’s aide for four years and was a substitute teacher for 10 years prior to that.

"I think (Les Stevens and the School Board) are doing an excellent job taking care of the schools," Early said. "I don’t have any problems with the steps they’re taking."