PSD 202 Revenue Expected To Exceed Spending By $4.7 Million

PLAINFIELD, IL — Plainfield School District 202 announced its preliminary budget for the 2021-22 school year Monday night, and it's expected to have a revenue of about $4.7 million after operating expenses. But while there’s an operating fund surplus, the district’s debt service and capital projects expenses leave the overall ending fund balance at a $1.2 million deficit.

The proposed operating fund revenue is about $319.3 million, with about $314.6 million in expenditures, according to a budget summary, leaving a surplus of almost $4.7 million. That's about a 5.3 increase in spending for this upcoming school year compared with $298.8 million last year, according to the district.

The proposed budget puts the district at about $354 million in total expenditures, which includes debt service and capital projects, and about $352.8 million in revenue. Money spent would be down 3.1 percent from last year's budget of $365.5 million, which factored in about $23 million for the construction of Wallin Oaks.

The expected revenue for the 2021-22 school year is up from the previous year's $293.3 million.

"That’s why we emphasize the operating budgets upfront, it’s what we see every day," said Tom Hernandez, the district's director of community relations. "It’s more relevant to the taxpayer. The bigger picture issue [the ending fund balance] that includes the debt and capital projects is … spread out over time."

Hernandez said money for the deficit generally comes from bonds and other revenue sources. He also noted the key distinction is that "your tax bill, what you actually pay, is based on the value of your house, which we have nothing to do with," though having a good school district tends to increase a house's value.

With the construction of Wallin Oaks, Hernandez said the district was issued a bond to pay for the construction "in a way that won't raise taxes, which is wonderful." That money was borrowed during the previous fiscal year, which he said made it look like there was more revenue last year. Now, he said the deficit "isn't really a deficit" because the district has the money and is going to apply it to the rest of the project.

"The money's there, the work will be finished when it's finished, we'll pay for it, and there'll no longer be a deficit," Hernandez said.

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A recent state report card for the district determined instructional spending per student comes out to about $7,122 compared to the state's average of $8,582. Officials said District 202 operates more efficiently than the state average.

"The proposed FY 2022 budget will allow District 202 to maintain high-quality educational programs while continuing to develop and implement a responsible, sustainable financial plan," Anthony Arbogast, assistant superintendent for business and operations, said in a statement.

Arbogast also said the proposed budget keeps property taxes "as low as possible" and allows the district to maintain a "recognition" status — which it has held since 2016 — on the State Board of Education's financial profile.

The operating budget pays for daily expenses, and about 79 percent of the total goes toward salaries and benefits. A proposal is also in place to approve 3 percent raises for administration and non-union support staff, as well as a 3 percent increase in benefits. Unionized teachers and staff would also receive raises, which are budgeted under their contracts, a news release said.

The district is in the process of hiring 47 new certified staff members, including staff for full-day kindergarten and Wallin Oaks Elementary School, according to the release. In total, all salaries and benefits total to about $249.9 million, which is up by about 6 percent from the previous year, in part due to the new staff.

The Board of Education will hold a public hearing on the budget at 6:30 p.m. Aug. 16 at the district's Administrative Center, 15732 S. Howard Street. Officials will vote on the new fiscal plan that same evening.

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