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Financial Status Report

Financial Status Report. Washington GSD 52 October 2009. WGSD Deficit Reduction Plan. ISBE is requiring WGSD to submit a Deficit Reduction Plan with the 2009-10 budget. The Plan will reduce spending in the Education and O&M Funds by approximately 1,450,000 over 3 years.

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Financial Status Report

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  1. Financial Status Report Washington GSD 52 October 2009

  2. WGSD Deficit Reduction Plan • ISBE is requiring WGSD to submit a Deficit Reduction Plan with the 2009-10 budget. • The Plan will reduce spending in the Education and O&M Funds by approximately 1,450,000 over 3 years. • Copies of the plan can be found on the WGSD website.

  3. Uncertain Revenue • State Superintendent written comment in a recent Weekly Newsletter to superintendents • “Sadly, as the new school year begins and Illinois citizens begin to understand the FY2010 budget reality, we need to begin preparing legislators as well as all citizens for the catastrophe that lies ahead in FY 2011, when we will need an additional $1 billion to make up for the federal stimulus funds that supported us in FY2009 – and again in this year’s budget – but will disappear after this fiscal year.” • “The Catastrophe the Lies Ahead” – very tough language from a State Superintendent

  4. General State Aid (GSA) • ARRA funds supplanted State GSA (and other non-categorical state grants) for FY 2010 – $1,000,000,000 • WGSD is projected to receive $471,000 in ARRA GSA • Does “Catastrophe” imply the loss of this portion of GSA? • Potential pro-rated GSA for FY 2010

  5. GSA Formula • Part of the formula for the calculation of GSA is the Local Share (property tax). • In the formula, Property Values and GSA are on opposites sides of a scale. As one goes up the other goes down. • Across the state property values are decreasing thus GSA must correspondingly increase. • Bottom Line – There will be more districts qualifying for an increased portion of GSA. Yet, there will be no new funds.

  6. Non-Categorical State Grants • Grants that effect WGSD • Reading Improvement • $30,000 - $35,000 typically • 90% for FY 2010 • ? For FY 2011 • Free Textbook • $40,000 (not counted as revenue) • 0% for FY 2010

  7. Pension Payments • For the last few years, governors have chosen to delay state pension payments in order to balance past budgets. • The first budget payment is due in FY 2010. Each year the payment increases. Payment amounts are measured in billions of dollars.

  8. “Local Share” Decreased Property Values? Part of the formula is linked to the CPI FY 2010 CPI = .1% (average approximately 2.5 %) Possibly a negative number in FY 2011? New Property in WGSD? Corporate Personal Property Replacement Tax (CPPRT) Based on income tax corporations pay to state FY 2010 down 17% Projections? Property Taxes

  9. Uncertain Revenue • Unprecedented times • “Catastrophe that Lies Ahead” • State Revenue Issues • Property Tax Issues • WGSD Budget Reduction Plan • WGSD Fund Balances are the life boat in these very troubled waters. • 2009-10 Projected Operating Fund Balance • $4,251,049

  10. Working Together / Achieving Excellence

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