The Commercial-News, Danville, IL

Local News

February 6, 2013

D118 board to hear about finances

DANVILLE — District 118 school board members will hear a presentation Wednesday on the state of the district’s finances.

Superintendent Mark Denman said at a media briefing Wednesday morning the school board will learn where the district stands with its fund balances and what the future holds five years out if revenue doesn’t increase or expenditures aren’t cut.

The presentation paints a bleak financial picture for the district by the year 2017 if changes aren’t made.

“If revenues stay as they look now and if expenditures aren’t cut — if we left things as is — there would be a deficit every year in the millions,” he said.

The district started out this fiscal year’s budget on July 1, 2012, with a total fund balance of $20.3 million but projects an ending fund balance of $17.8 million by June 30.

“We’re projecting a $2.4 million deficit this year,” he said.

Denman said district officials are starting to do “pre-work” for next year’s budget.

“Yes, we’re looking at reductions, but we haven’t completed our study,” he said, adding he expects any recommendations for cuts to come in March.

The district’s biggest concern, according to Denman, is the steady decline in state funding.

“Half of our revenue comes from the state, and the state is increasingly unstable,” he said. “It doesn’t look like the state’s problem is going to be resolved for years.

“The governor says $400 million will have to be cut from state education,” he added.

Forty-nine percent of the district’s revenue comes from general state aid and reimbursement payments, another 35 percent comes from local property tax and the remaining 16 percent comes from the federal government.

“Our district is supposed to get $29 million from the state, but we’re going to get $26 million this year,” Denman said. “That $3 million would take care of the deficit the district is in.”

That’s because the district is receiving only 89 percent of its total entitlement from the state, and district officials are concerned the level of state funding could drop further to 80 percent in subsequent years.

“We’re very dependent on state revenue,” he said. “If it goes down to 80 percent, it would be a loss of $5.8 million.”

According to the district, it has not received 100 percent of what it should receive in general state aid since 2008-2009, amounting to a total loss of $4.7 million in state funding. If the general state aid is funded at the 80 percent level — which would be a loss of another $5.8 million — the cumulative loss to the district during the last five years would be $10.5 million.

Categorical payments from the state, such as transportation and special education, have been prorated as well since 2010-2011, amounting to a loss of $300,000 per year in regular transportation alone.

“When we do get categorical payments, they’re usually for the prior year,” Denman said.

As far as local revenue goes, the district’s equalized assessed valuation has been decreasing since 2009, amounting to a compounded loss of $3 million since the 2009-2010 school year. The district is expecting to lose an additional $712,577 in the 2013-2014 school year, making the cumulative total loss $5.6 million over four years.

Also since 2008-2009, interest rates on the district’s money in the bank have plummeted, Denman said.

In the meantime, expenses have been steadily increasing. Insurance costs have increased by 15.09 percent from 2011 to 2012, with an estimated increase of 18.85 percent in 2013. And while nothing has been decided on pensions, the district is aware of the possibility of a shift in pension responsibility from the state to the local school districts.

Denman said the pension shift might be done in increments, amounting to an additional expense of $266,000 for every 1 percent that is shifted to the district.

“One year would be difficult, but you could do it, but if it’s compounded over the years, then I don’t know,” he said, referring to assuming pension responsibility in increments.

Also on Wednesday, school board members will:

Text Only
Local News
  • School sign-up begins

    July 29, 2014

  • CRIS offers breakfast

    July 29, 2014

  • Police, Fire Reports

    July 29, 2014

  • NWS-CN 07-20 Foster mug County clerk on hunt for general election judges DANVILLE — The Vermilion County Clerk’s office is looking for a few good men and women for this year’s general election.On Thursday, Vermilion County Board members certified the county’s first group of election judges for the November general electio

    July 29, 2014 1 Photo

  • NWS-CN 07-29 Talking photo Report: Medicare looking better WASHINGTON — Medicare’s financial future is looking brighter despite a growing wave of baby boomers reaching retirement.Getting relief from a slowdown in health care spending, the program’s giant hospital trust fund won’t be exhausted until 2030, the

    July 29, 2014 1 Photo

  • Police Reports Incidents reported to police include:DanvilleFriday:Battery and obstructing an officer in the 1600 block of East English Street.Burglary at The Juke, 1214 E. Main St.Saturday:Theft in the 1500 block of Oak Street.Vehicle burglary in the 100 block of

    July 29, 2014

  • Two hurt in weekend shootings in Danville DANVILLE — Two victims are listed in good condition following a pair of weekend shooting incidents in Danville.Danville Director of Public Safety Larry Thomason confirmed the shootings, which took place around 8:15 p.m. Friday and just before 5 a.m.

    July 29, 2014

  • Fire Calls Firefighters responded to the following calls:Saturday, 10:08-10:23 a.m. — A medical call in the 200 block of Delaware Avenue.Saturday, 10:47-10:54 a.m. — Assist Medix in the first block of East Harrison Street.Saturday, 11:37-11:49 a.m. — A medical

    July 29, 2014

  • Library sets program for Farmers' Market

    July 28, 2014

  • Reception celebrates truck

    July 28, 2014

E-edition
Spring 2014 Photos


Buy these photos and more via Smugmug

AP Video
US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming Traditional African Dishes Teach Healthy Eating
NDN Video
Weird 'Wakudoki' Dance Launches Promotional Competition Two women barely avoid being hit by train Chris Pratt Adorably Surprises Kids at a 'Guardians of the Galaxy' Screening Chapter Two: Designing for Naomi Watts NOW TRENDING: Peyton Manning dancing at practice "The Bachelorette" Makes Her Decision Thieves pick the wrong gas station to rob Golden Sisters on '50 Shades' trailer: 'Look At That Chest!' Staten Island Man's Emotional Dunk Over NYPD Car - @TheBuzzeronFOX GMA: Dog passes out from excitment to see owner Baseball Hall of Famers Inducted 'Hunger Games: Mockingjay Part 1' Sneak Peek Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show' Robin Wright Can Dance! (WATCH) She's Back! See Paris Hilton's New Carl's Jr. Ad Big Weekend For Atlanta Braves In Cooperstown - @TheBuzzeronFox Chapter Two: Becoming a first-time director What's Got Jack Black Freaking Out at Comic-Con? Doctors Remove 232 Teeth From Teen's Mouth
Must Read