Ridgeland School District 122 2008 Referendum

District 122 in Oak Lawn

District 122 Attendance Area

The Effects of the Failed Referendum in April 2007

Increased class sizes to 35-38

Eliminated 9 Elementary Teachers

Eliminated Band

Eliminated Music

Eliminated Art

Eliminated LRC Directors & Assistants

The Effects of the Failed Referendum in April 2007

Extra-curricular activities at Simmons are now fee-based

Staff Development funding is no longer available

Reduction in Custodial Salaries

Administrative pay freezes

Increase student fees

Our Current Situation

From 2002-2006, the average operating deficit was $1.25 million/yr

For the 2005-2006 school year our operation deficit was just over $2 million

For the 2006-2007 school year an operating surplus of $1.3 million due to a bond sale

For the 2007-2008 school year our operation deficit is projected at $650,000

Our Current Situation

The state requires all school districts to…

Have a balanced budget within 3 years

Have an annual deficit reduction plan

May be placed on the state financial watch list if the district budget is not balanced

Our Current Situation:Reduced Revenue

Tax Cap Legislation (1994)

Based on Consumer Price Index (CPI)

Has capped revenue increases to an average of only 2.5% per year

School Districts in tax-capped counties exhaust cash reserves and must run a referendum campaign every 7-10 yrs.

Our Current Situation:Increased Expenses

Ridgeland School District 122 expenses have outpaced the Consumer Price Index every year since the tax cap legislation in 1994

Increase in contractual obligations

Health insurance - Nationwide, health benefit costs increased by over 80% since 2001

State mandated programs• English Language Learners (ELL)• Fee Waivers• Special Education

- 1/3 of our current budget expense

Transportation costs have increased 100% since 2000

Our Current Situation:Increased Expenses

Special Education tuition has increased 143% since 2000

Special Education state reimbursements were increased for first time in 22 years From $8,000 per teacher to $9,000From $2,800 for support staff to $3,500

Our Current Situation:Increased Expenses

Education Fund expenses increased 7.8% per year.

Overall Revenue increased 5% per yearState and Federal grantsTax revenue

Our Current Situation:Increased Expenses

Between 2001-2006,The previous teacher contract allowed for an average increase of 6% per year

The current contract averages a 3.75% increase per year for three years

District Revenue SourcesLocal 76%

Taxes, Interest, Fees, Lunch Sales

State 18%General State Aid, Special Education, Transportation

Federal 6%IDEA, NSLP, Title Grants

District Expenditures

Salaries 55%

Benefits 14%

Purchased Services 26%

Supplies 5%

Where do the salary costs go?

Teachers 76%

Support Staff 16%

Principals 4%

Administration 4%

Our Options

Continue to borrow annually and pay back with interest at taxpayers expense.

Make additional budget cuts

Lease one building to a third party

Pass a referendum to increase revenue

Option 1 - Borrow Annually

Sell Working Cash BondsSales in 2006 & 2007

Tax Anticipation WarrantsUsed to make payroll after all reserves have been

spent

The above two items are the same as using charge cards and must be paid back with interest

Both items will downgrade credit rating

Continuing to borrow will not balance the budget

Option 2 – Additional Budget CutsEliminate Sports/Extra-Curricular activitiesGrade Level Centers for 2008-2009

K-2 at Lieb School3 at Kolb School4-5 & Pre-School at Harnew School6-8 at Simmons Middle SchoolMove administration offices to Kolb SchoolMaintenance staff remain at Olcese/Johnson Lease Columbus Manor School or Kolb

School to another third party

Building vs. Educational Fund Referendum

Building Fund Referenda can only be used for the improvement of facilitiesLast building referendum passed in 2000,

language changes in 2002 & 2004Resulted in new and renovated schools

throughout the district

Educational Fund Referenda can only be used for daily operationsLast educational fund referendum passed in

1997

70 cents/$100 Equalized Assessed Valuation (EAV)

A home worth $200,000 would see a $345 increase

Assessments lower than actual home value

Effects of a Successful Referendum for the Property Owner

Effects of a Successful Referendum:For the Students of District 122

Reinstate programs for the 2008-2009 school year

Neighborhood schools will remain open

Class sizes will be reduced

Budget will be balanced for 7 years

It’s About Kids!