District 202 To Earn State's Top Fiscal Rating For 6th Year

PLAINFIELD, IL — District 202 said it recently received two pieces of good news that affirm its strong fiscal standing despite current and anticipated financial challenges related to the COVID-19 pandemic.

Preliminary information indicates that District 202 will earn the Illinois State Board of Education’s (ISBE) top fiscal rating for the sixth straight year later this spring, according to a release from the district.

Likewise, Moody’s Investors Service this week affirmed District 202’s Aa2 rating — the third highest on the Moody scale — based on the district’s $9.1 million general obligation limited tax school bond series.

Proceeds from the bond will be used to help pay for future capital improvement projects, which will in turn help the district to keep more money in the classroom, the district said.

The rating reflects the district’s ability to repay debt and similar obligations, and strong, conservative fiscal management.

District 202 expects to receive ISBE’s "Recognition" status based on the district’s fund balances, daily expenses, revenues, cash on hand, and short-term and long-term debt. ISBE uses that information to create a ratio ranging from 1 to 4. The district’s status fell to "Watch", the lowest ranking, in 2012 following the Great Recession.

But the district has earned "recognition" status every year since 2016, and expects to do so again this year, based on the district’s most recent Annual Financial Report, said Assistant Superintendent for Business and Operations Anthony Arbogast. District 202 earned a 3.9 ratio in FY 2018, 2019 and 2020.

The district said the achievement is the more remarkable considering the financial impact the pandemic has already had and is expected to continue to have on local property taxes which comprise about 65 percent of the school district’s revenues.

District 202’s FY 2021 operating budget, which pays for daily operating expenses, showed an anticipated $4.4 million deficit when it was approved in September 2020. The total budget, including debt service and capital projects, was also expected to yield a $29.7 million deficit largely because of declining revenues.

The district said that deficit is largely due to declining revenues and expenses related to construction of Wallin Oaks, the district’s new elementary school. Wallin Oaks is being built to help provide enough room district-wide to offer full-day kindergarten to all eligible students.

Arbogast said District 202’s operating expense per pupil is significantly less than several neighboring districts. Yet District 202’s student achievement compares very well with or exceeds most of its comparable districts.

"District 202 has a long history of running a very efficient operation," Arbogast said. "Our families and taxpayer get a tremendous return on their investment in their schools, students, and community," he said.