School District 41 faces $1 million deficit

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B.J. Hooper Elementary School in Lindenhurst. | File photo

Updated: April 16, 2012 1:43AM

LAKE VILLA — Grade School District 41 is facing a $1 million deficit, forcing the district to lay off staff and reduce operating expenses before the 2012-13 school year.

A letter outlining the district’s financial dilemma went out to parents and staff Feb. 3 with the school board expected to act on recommended lay-offs and cuts to operating expenses at the Feb. 27 board meeting.

The majority of the reductions will be effective next year with the remaining reductions introduced the following year. “We’ve seen this coming for awhile and there is no avoiding the cost-cutting measures,” said District Supt. Dr. John Van Pelt.

Over the next two years the district will cut expenses by $1.4 million, but the district that includes four grade schools and one intermediate school will still have a deficit of about $1 million which will be made up by the district’s reserve funds. “This is similar to a family decision to dip into its savings to cover routine household expenses, such as mortgage payments, rent, utilities, or food,” said Van Pelt. “It is a temporary solution that buys time and provides a quick fix to an ongoing challenge. If no cuts are made, the reserves wouldn’t last more than three or four years.”

Declining enrollment in the K-8 district since 2007 has forced the termination of 11 classroom positions already and it appears the trend will continue for at least the next few years. Van Pelt said the school board isn’t ready to project how many staff members — including teachers, special services staff, administrators, teacher aides, custodians and office staff — will face layoffs.

Van Pelt said the number of positions to be eliminated has not been decided, but the majority of layoffs will be done for the 2012-13 school year.

He said reduced state aid and decreasing enrollment is a one-two punch for the district. General state aid has not increased in the past three years, and has actually been reduced because aid amounts are based on enrollment. Most categorical and special program grants have been reduced or eliminated.

The projection for enrollment for next year is 3,050 students, down from this year’s enrollment of 3,134 compared to 3,223 students the previous year.

The projection over the next three years is for the district to lose 80 to 90 students each year with enrollment figures expected to level off after that. “We will continue to see a loss but it won’t be as steep,” said Van Pelt.

But a reduced District 41 student population is the trend, he said. This year 379 eighth-graders will graduate but only 276 students were enrolled in kindergarten. “That coupled with our declining state funding and other grant revenues based on enrollment means we face a continuing decline in revenues,” said Van Pelt. “In the meantime our expenses continue to increase and honestly I don’t see any relief in sight. We have declining state financial support with declining enrollment on top of that.”

Some of the steps being taken to reduce the deficit include emailing district newsletters and other communications to parents and using the District Web site as a primary source of information for parents and community members; reducing building and department budgets and monitoring building operational and maintenance costs.

“We will continue to fund essential initiatives that increase the ability of staff to

meet instructional challenges and enhance learning outcomes,” said Van Pelt, including professional and curriculum development, instructional materials and classroom technology

Van Pelt said the district has strategized on how to reduce staff without significantly impacting class size. “We remain focused on our responsibility to remain good stewards of both the District’s academic quality and its fiscal resources.”

The school board will also reconvene the Financial Advisory Committee next year, allowing district, parent, and community representatives to review and recommend additional budget-balancing strategies.