Officials search for ways to cope with possibly late state aid
As Illinois begins another week without a new state budget, south suburban school officials are concerned about the possible financial implications on their districts.
Property poor school districts heavily reliant on state revenues are most at risk of money troubles if the state budget stalemate continues too much longer and general state aid to schools is delayed, they say. State aid to schools typically begins to arrive in mid-August.
Bloom Township Schools Treasurer Robert Grossi, whose office serves as custodian of 11 school districts' funds, said south suburban Cook County districts could be impacted the most.
The problem, he said, is the districts won't receive a significant portion of their property tax revenue until at least Oct. 1, many of them rely heavily on General State Aid, and some have financial difficulties and do not have fund balances available to absorb a delay in their state revenues, Grossi said.
"There are districts that need to see general state aid money coming into their districts in August or they potentially will have cash flow problems that will require them to either withhold paying bills, including teachers perhaps, or consider issuing tax anticipation warrants," Grossi said.
Sandridge Elementary District 172 in unincorporated Bloom Township relies on state funding for nearly half of its education fund revenue, but the district has sufficient fund balances to afford some delay in state revenue, he said.
Hoover-Schrum Elementary District 157 in Calumet City counts more on property tax revenue than state funding to cover its costs, and Business Manager Alicia Evans said the district has enough money in reserve to get by.
In Lansing's Sunnybrook Elementary District 171 where a tax referendum attempt was defeated by voters in April, Superintendent James Majchrowicz said his district has fund balances to pay bills and meet payroll expenses, but is not sure for how long.
He said he doesn't recall the state going so long without a settled budget and called the deadlock "ridiculous."
"They've had a (school funding) solution on the table for three years. In three years, they couldn't come up with some kind of compromise. ... That's sad, " Majchrowicz said.
In South Holland Elementary District 151, where general state aid accounts for 20 percent to 25 percent of the district's revenue, Superintendent Doug Hamilton said the district has enough in fund balances to last a couple of months.
Had the district not passed a tax referendum in April 2003, Hamilton said, "I would be sweating. My outlook would be completely different."
Posted in Local on Sunday, August 5, 2007 12:00 am Updated: 10:28 pm.
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