Waukegan Community Unit School District 60 plans to spend slightly over $332 million during the fiscal year which started July 1 without a property tax increase and with sufficient cash reserves to handle any potential shortfall.
The District 60 Board of Education unanimously approved the budget for the current fiscal year ending June 30 during a public hearing Tuesday at the Lincoln Center administrative building.
Gewndolyn Polk, the associate superintendent of business and financial services, said District 60 plans to spend just under $332.4 million, with more than $185.4 million — or 55% — going to salaries and benefits for the 15,000-student district’s 2,200 employees.
Other expenditures include around $66.8 million for purchased services, $25.9 million for supplies and materials, $25.6 million for capital outlays and another $26 million for noncapital equipment, according to the budget document.
Projected revenue comes primarily from three sources, according to the budget document. The district anticipates receiving just over $157 million from the state of Illinois, primarily from evidence-based funding.
Ray Vukovich, a resident speaking at the public hearing, said the state evidence-based funding program is an important part of the budget. He wanted to know if the student population is sufficient to continue supporting it at its current level. Polk assured him it was.
“I had that concern as well,” Polk said. “We have to look at other districts across the state. Their enrollment is also declining. We will probably remain at Tier 1, so our funding level will probably remain the same. This year and last year it was level.”
Another $78.4 million is anticipated from the federal government, including COVID-19 relief funds and just over $67.2 million from property taxes for approximately $302.6 million in total revenue, leaving a $29.8 million shortfall.
Brian Luosa, the district’s director of business and finance, said the budget was prepared without the anticipation of a property tax increase as has been done in for the past few years.
“The last two or three years we have kept the property taxes level,” Luosa said. “We have not raised them. We have lost property tax revenues by doing so. That is the wish of the board. When we do the levy this fall, we will ask for your direction again on what you want to do with the property taxes.”
Since there is a projected fund balance of more than $80 million by the end of the fiscal year, Polk said those funds will be used to cover any potential cash shortage through the year. Should that occur, it would leave approximately $50 million in the bank on June 30.
Polk likens using cash reserves to meet financial obligations to an individual drawing from a personal savings account to pay expenses during an expensive month. Board member Charlotte Callahan Wozniak said during the hearing she has heard concerns from people about deficit spending.
Luosa said there are a variety of ways to handle a shortfall to avoid deficit spending. The budget was crafted for flexibility.
“I don’t think there is anything to worry about at this point,” Luosa said. “We are conservative with the revenues, and we’re pretty sure all the expenditures will not be expended. We do have a fund balance that can absorb a deficit.”
Polk said during the hearing the budget is both a plan and an ongoing process as the year proceeds. She recognizes priorities can change and unforeseen issues arise. Her office keeps a close eye on spending on a regular basis.
“In our office, we have the highly likely, the likely and the unlikely,” Polk said. “We’re monitoring that constantly to see where we are in terms of spending and speaking to the superintendent (or others) about reprioritizing how we’re spending the money.”
