Plainfield School Board OKs First Surplus Budget Since Recession

District 202's financial picture is looking brighter than it has in years, according to Assistant Superintendent of Business and Operations Angie Smith.

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For the first time in five years, Plainfield schools will start the fiscal year with an operating fund surplus. According to Smith, the $242 million overall budget shows a surplus of $960,000.

The first surplus since the recession began, the budget comes after four years of fiscal austerity, according to the district. Since 2009, operating expenses have been cut by about $42 million — including cuts made by eliminating 345 full-time teaching, support staff and administrative positions, along with other cost-cutting measures.

Budget highlights

This year's budget projects $242 in expenses, a 1.9 percent, or $4.6 million, increase over last year.

But revenues are also up this year by about $7.4 million, or 3 percent, according to school officials.

In a press release issued after Monday night's vote, Director of Community Relations Tom Hernandez said the new budget includes funding to pay for the following, while still coming out ahead:

• Maintain school allocations at last year’s levels
• Implement the new Common Core State Standards curriculum
• Buy 1,000 laptops needed for the new state standardized assessment, which must be taken online
• Support the Board’s Strategic Plan goals for this year
• Supports raises ranging from 2-3 percent to administrators and non-union staff
• Give teachers a 1.5 percent raise, per their contract
• Give support staff a 2.2 percent raise, per their contract
• Budget $1 million as contingency in case of enrollment changes and special education needs, as is routinely done
• Cover increased benefits costs due to the Affordable Care Act.

With an uncertain state funding picture, Smith said she budgeted General State Aid conservatively, setting it at 87.5 percent of reimbursable expenses. Originally, the state had pledged to fund GSA at 89 percent, but that figure has already dropped to 88.7 percent.

View the 2013-14 budget online

Cautiously optimistic

More good financial news could be coming in the next several years, according to school officials. Smith said an uptick in construction could increase the district's equalized assessed valuation, bringing in more tax revenue in years to come and continuing to improve District 202's finances.  

“We have to continue to control our expenses and budget very carefully, but it looks like things are starting to stabilize, and the future looks a little bit brighter,” Smith said.

If the state makes good on its funding promises, the district could also begin to increase its operating fund balance to bridge the gap between tax payments and for cash flow.

Currently, the district has enough in its reserve to pay for about 38 days of operations. Other nearby districts have enough to support between 73 and 215 days, according to officials.

The budget approved Monday night would add $1 million to the fund balance. Smith said she recommends the district aim to create a balance large enough to sustain 60 days of operations.

The first surplus budget in five years comes a year after the district anticipated a nearly $9 million deficit. The 2012-13 deficit was pared down to about $1.8 million in January with a combination of new revenues and non-personnel cuts and savings.