Bloomington School District 87 Deficit Reduction Plan PTOPTA Presentation

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Bloomington School District 87 Deficit Reduction
PlanPTO/PTA Presentation
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Status Report

• District 87 ended the 2002 fiscal year with a
  1.7 million operating deficit in the Education
  Fund
• This gap will grow to 2.5 million by June 30,
  2003

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Contributing Factors

• Decline of 1.1 million in Corporate Personal
  Property Replacement Taxes over the last two
  years.
• Decline in interest rates from 6.5 in 2000 to
  2.687 in 2002 on the fund reserves we now have.
• Decline of 1 million in General State Aid.

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Assumptions

• Our student population will remain stable over
  the next several years.
• Interest rates will remain in the 1.5-2.5 range
  for the next 12-18 months.

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Assumptions

• Corporate Personal Property Replacement Taxes
  will remain flat for the next 12-18 months.
• General State Aid will be prorated (reduced) for
  the next two years.
• Categorical grants will be prorated (reduced) for
  the next two years.

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Assumptions

• The financial condition of the State will not
  improve over the next 18 months
• Corporate profits will remain flat for the next
  12-18 months

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Unknown Variables

• Cost of health insurance increases
• Increases in liability insurance
• Increases in Workman's Comp
• Utility costs
• Cost of new new contracts for bargaining units
• The economy

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Guiding Principals for Reductions

• Reductions in services and programs are
  preferable to the elimination of programs.
• Minimize the impact the reductions have on direct
  services to students.
• Maintain the integrity of the K-12 instructional
  program.
• Maintain the safety of all students and staff.
• Reductions should be shared by all members of
  the district.

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Certified Staff Reductions

• 21 Certified Staff Members 693,000
• 2 Administrators 155,000
• Total Certified Staff Reductions 848,000

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Non Certified Reductions

• Non Certified Reductions 276,400
• Technology Staff 89,000
• Total 365,400

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Programmatic Changes

• Summer School will become a
• tuition based enrollment. 145,000
• Reductions in Schedule B 38,356
• Fourth and Fifth grade orchestra and
  band will be consolidated
• Total 183,356

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Supplies, Travel and Materials

• Instructional Materials 200,000
• Supplies and Equipment 100,000
• Travel and Conference 25,000
• Savings from 2002-03 52,000
• Total 377,000

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Totals

• Certified Staff Reductions 848,000
• Technology 89,000
• Non-Certified Reductions 276,400
• Programmatic Changes 183,356
• Supplies, Equipment, Travel 377,000
• Retirement Savings 654,000
• Total Reductions 2,427,756

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Revenue Enhancement

• Increase Tax Levy by .03. 200,000

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Totals

• Expenditure Reductions 2,427,756
• Revenue Increase 200,000
• Total 2,627,756

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Time Line

• 1/8/03
• Categorical Deficit Reduction Plan presented to
  Board of Education
• 1/22/03
• Discussion and recommendations from Board of
  Education and Community
• 2/26/03
• Deficit Reductions Approved by Board of Education

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Time Line

• 3/12/03.
• Reduction in Force Resolutions Passed by Board of
  Education.

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Questions/Comments