|
|
 |
 |
 |
 |
News
State aid funds may not arrive for schools until summer : News : Oswego Ledger-Sentinel : Hometown Newspaper for Oswego and Montgomery, IllinoisState aid funds may not arrive for schools until summer
| Officials "cautiously optimistic" money will arrive in time to avoid budget deficit
| by Lyle R. Rolfe
| 1/14/2010
|
The Oswego School District, like all other public school districts in the state, is having money problems because the state legislature has not been making its categorical grant payments.
School superintendent Dr. Daniel O'Donnell told board members Monday night that he met that morning with State Rep. Tom Cross (R-Oswego), and Chris Koch, state superintendent of schools, to discuss the problem.
O'Donnell said the state is about $13 million behind in fund payments to the district. State officials said the last time they had a situation like this was in 1992.
"We asked them about the possibility of receiving the categorical funds, particularly transportation, this year," O'Donnell said. "They indicated it was their intention to come through with all those payments but that they may be as late as July or August because it is dependent on some federal funding and the sale of some bonds. But they said we could plan to see most of that revenue if not all of it. So, we're cautiously planning to move ahead and anticipate that that revenue will come," he said.
But as a precautionary measure, O'Donnell said the district is going to pull back its spending a bit and ask all school principals to do the same, "...until we start to see some of those dollars come through."
O'Donnell said August puts the district into the next fiscal year,
"But as long as the funds arrive by a reasonable time in August, the law allows us to book them as coming in this fiscal year," he said. "If we don't, we get into a bind with a deficit budget simply because the state did not pay us our money on time. We're not there yet, but we're pushing for it and I think we've got a better chance than we had last week," he said.
O'Donnell said district officials had a conference call with the State Comptroller's Office and the Finance Department of the Illinois State Board of Education. They all concurred that the district would more than likely get this year's categorical funds but it would be late.
"So we are cautiously optimistic that we will get that money. We just don't know when so we'll have to do some short term borrowing until we get the money," he told board members.
O'Donnell said he also met the previous week with State Rep. Linda Chapa LaVia (D-Aurora), head of Appropriations for the Elementary and Secondary Education Committee.
"When asked about payments this year, she said it is their intent to come through this year, but this is dependent on the federal funds they receive, bonds being sold and their revenue projections," he said.
O'Donnell said he also asked Chapa-LaVia about the possibility of an increase in funds next year.
"She indicated there is little chance of an increase, at least until after the primary election in February when discussions might take place," O'Donnell said. "She did not know if anything would take place until after the General Election in November. If that's the case, that doesn't help us for next year because that money would come in the following year," he added.
"My take on this-based on all these conversations we've had-is that we should keep the pressure on to make sure we do get paid the highest percentage possible," he said.
General state aid
reduction coming?
Tim Neubauer, district executive director of finance services, said at the Dec. 14 board meeting that for the next fiscal year, (July 1, 2010-June 30, 2011), the state may reduce the General State Aid by as much as $150 per student.
"We now receive about $2,354 per student," Neubauer said.
That money is needed for the district's General Education Fund, he added.
Neubauer said more than one third of the district's operating budget-36.11 percent-comes from the state in General State Aid and Categorical grants.
O'Donnell said Monday night that the district will continue to plan next year's budget on the basis that the federal aid will disappear ($150 per student less General State Aid), so they won't be caught unaware.
At their Dec. 14 board meeting, board members approved a resolution to borrow $1 million from their Working Cash Fund to pay bills in the Transportation Fund. And this is the third time they did so this year, borrowing $2 million earlier.
The Working Cash fund of $12 million was set up so the district can borrow funds, interest free, from itself when necessary. But the money must be paid back from the fund that borrowed it by the end of the fiscal year, he said.
But, by February or March Neubauer predicted the school district will probably have to issue Tax Anticipation Warrants (TAWs).
This is a form of borrowing that allows the district to issue obligations based on the district's future property tax revenue as collateral. After property taxes are received the district must pay off the TAWs principal and interest.
|
|
 |
 |
 |
 |
|
|
