Revenue projections indicate potential budget deficit
Feb. 17, 2009
Faced with the possibility of a budget deficit for the 2008-2009 fiscal year, Springfield Public Schools is reviewing unspent budgets to identify non-personnel expenditures which may be eliminated between now and June 30.
During school board meeting Tuesday night, Chief Financial Officer Steve Chodes reported to board members that current revenue projections indicate the district could end the current fiscal year with a deficit of about $4.7 million.
Revenues in several categories, including taxes, investment income and basic formula, are currently lower than originally budgeted, amounting to about $3.3 million less than expected. The district began the fiscal year with a budget deficit of $901, 327 and has approved budget modifications of $488,068 in additional expenditures.
Over the next few weeks, administrators will review a list of non-personnel expenditures originally identified to reduce the budget by 5 percent. Superintendent’s Cabinet will consider those, along with other possible budget reductions, and make recommendations for ways to reduce non-personnel expenditures by about 14 percent to offset the deficit.
“As we develop a clearer picture of our financial position, we will share with staff specifics about these reductions,” explained Superintendent Norm Ridder. “We want to remain proactive in managing our budget given the current economic climate and we want to hold tight to our 10 percent fund balance as the board has directed.”
Dr. Ridder noted that expenditures such as parking lot repairs, building maintenance or bus purchases might be among the cost reductions. A more detailed report will be made to the school board in March.
In other business, the school board approved issuance of lease participation certificates to generate about $8,645,000 to construct, furnish and equip the new Hickory Hills School.