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Transcription

1 COOK COUNTY SCHOOL DISTRICT 68 SKOKIE, ILLINOIS FINAL ANNUAL BUDGET REPORT TO THE BOARD OF EDUCATION July 1, 2017 through June 30, 2018 Prepared by Ryan Berry Assistant Superintendent forr Business/CSBO For James Garwood, Ed.D. Superintendent of Schools

2 Annua al Budget Table of Contents Page Introductory Section Budget Summary... 1 Organizational Section Board of Education Members and Central Administration Vision, Mission & Strategic Goals... 8 Budget Developmen nt Process and Administration... 9 Financial Section Description of Accounting Structure and Budget Classifications Consolidated Budget Revenue Expenditures Informational Section Variance Analysis Assessed Valuation and Tax Rate Data... 44

3 Budget Summary This budget outlines the projected revenues and expenditures for the fiscal year. The budget is intended to provide the Board of Education and the community the necessary data to facilitate understanding of the district s financial position and operational plan. The budget reflects the need to plan effectively for: program changes and their impact on staffing continuing curriculum development Strategic Plan initiatives infrastructure maintenance and upgrades The total enrollment of the district is projected to remain steady for Enrollment has remained in the range of 1,700 to 1,800 for the last several years, with minor fluctuations from year to year. The strategic initiatives of the strategic plan in areas of raising student achievement, building community partnership, and teaching, learning, and working with technology are supported by specific allocations in the tentative budget in line with the strategic initiative of maintaining fiscal responsibility. The budget is intended to be a working document. It is used throughout the school year to give direction and guidance to the school board and administration concerning the allocation of funds during the year. The tentative budget is presented to the Board of Education for discussion and input in July. It is put on public display and made available on the district website. A final budget is presented to the Board for adoption in September. -1-

4 Budget Overview The district begins the year with reserves of $37.3 million in all funds including proceeds of Working Cash Bond sales in 2011, and 2015 and the sale of Sharp Corner School in Revenues for the year are budgeted at $32.8 million. Expenditures are projected at $34 million, resulting in a projected operating deficit of $1.234 million for the year. A portion of the proceeds from previous Working Cash Bond sales will be used to fund the deficit. Education Oper.& Maint. Debt IMRF Working Total All & Tort & Cap. Proj. Transp. Service SS/Medicare Cash Funds 7/1/2017 Balance 20,703,293 6,321,582 2,465,237 2,454,972 1,555,790 17,912,351 51,413,225 Advance Taxes 10,349,170 1,441, ,922 1,196, ,597 48,207 14,102,882 7/1/2017 Reserves 10,354,123 4,880,332 1,958,314 1,258, ,194 17,864,143 37,310,343 Budget Revenue 24,563,700 2,892,600 1,499,300 2,311,600 1,122, ,500 32,815,000 Budget Expenditures 26,357,181 3,963,694 1,387,666 2,278,000 1,102, ,089,271 Contingency & Unspent 750, , , , ,040,000 Projected Expenditures 25,607,181 3,813,694 1,287,666 2,278,000 1,062, ,049,271 Surplus / (Deficit) (1,043,481) (921,094) 211,634 33,600 59, ,500 (1,234,271) Bond Sale Transfers 520, ,000 0 (20,000) 0 (800,000) 0 Net Change in Balance (523,481) (621,094) 211,634 13,600 59,570 (374,500) (1,234,271) 6/30/2018 Projected Bal. 20,179,812 5,700,488 2,676,871 2,468,572 1,615,360 17,537,851 50,178,954 Advance Taxes 10,365,100 1,415, ,100 1,200, ,000 48,000 14,078,100 6/30/2018 Proj. Reserves 9,814,712 4,284,588 2,187,771 1,268,572 1,055,360 17,489,851 36,100,854 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, /1/2017 Balance Revenue Expenditures 6/30/2018 Projected Bal. 9/14/17-2 -

5 Revenue Summary Total revenues for are projected to increase 1.8% from last year's budget. State and federal revenues provide only a small portion of district funding, with local revenues accounting for nearly 90% of total receipts. Property taxes continue to be the primary revenue source for the district. District revenue by source of funding is detailed below. SOURCE OF REVENUES Taxes & CPPRT 83% Interest 3% Federal Aid 3% State Aid 8% Other Local 3% Revenue by Source % of Total % of Total Taxes & CPPRT $26,980, % $27,328, % Interest 761, % 995, % Other Local 741, % 811, % State Aid 2,767, % 2,660, % Federal Aid 984, % 1,020, % Total $32,233, % $32,815, % 9/14/17-3 -

6 Expenditures by Fund The current expenditure budget for all funds reflects approximately a $625,000 increase compared to last year's budget. Large increases in the Education/Tort funds due to increased staffing are offset by a decrease in Operations & Maintenance, Capital Project, Transportation, IMRF and Social Security expenditures. Budgeted expenditures by fund are detailed below. 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 Bond & Interest IMRF/Social Sec. Transportation Oper. & Maint./Capital Education/Tort 10,000,000 5,000, Fund % Change Education/Tort 25,273,824 26,028, % Oper. & Maint./Capital 3,992,370 3,963, % Transportation 1,462,022 1,387, % IMRF/Social Sec. 1,141,860 1,102, % Bond & Interest 2,266,049 2,278, % Total 34,136,125 34,760, % - 4 -

7 Expenditures by Type Salary and benefit costs account for 70% of the total budget and over 80% of the Education Fund budget for The breakdown by expenditure type shows a increase of 2.7% in the total salary budget. Insurance premiums and employee retirement payments were relatively flat. Tuition costs increases remain low as a result of our continuing effort to bring special education students back into the district from NDTSE programs. However, the distribution of fund balance by NTDSE has concluded and special education costs are expected to raise as a result. After the completion of Phase I of the OOJH fields project, Phase II has a begun with a reduced scope and Capital costs show a large reduction as a result. Supplies 3.7% Capital 5.3% Contingency 0.7% 56.9% Tuition / Other 11.0% Services 7.1% Benefits 13.1% Expenditure Type % of Total % of Total % Change 19,261, % 19,775, % 2.7% Benefits 4,633, % 4,563, % -1.5% Services 3,188, % 3,200, % 0.4% Tuition / Other 3,610, % 3,832, % 6.1% Supplies 1,257, % 1,287, % 2.4% Capital 1,935, % 1,851, % -4.4% Contingency 250, % 250, % 0.0% Total 34,136, % 34,760, % 1.8% 9/14/17-5 -

8 BOARD OF EDUCATION Una McGeough, President (term expires 4/2021) Amy Anson, Ph.D., Vice President (term expires 4/2021) Richard Berk, M.D., Secretary (term expires 4/2019) Frank Alkyer (term expires 4/2021) Katrina Bell-Jordan, Ph.D. (term expires 4/2019) Meghan Espinoza (term expires 4/2021) Joseph Ruffner (term expires 4/2021) CENTRAL OFFICE O ADMINISTRATION James Garwood, Ed.D. Superintendent Ryan Berry Assistant Superintendent for Business/ Chief School Business Official Lisa Schwartz Assistant Superintendent for Instruction -6-

9 SKOKIE SCHOOL DISTRICT 68 Superintendent of Schools Executive Assistant to the Superintendent/BOE Assistant Superintendent of Business Chief School Business Official Payroll/Benefits Specialist Accounts Payable District Office Receptionist District Registrar Director of Technology Network Manager Director of Special Services Assistant Superintendent for Instruction Secretary to Asst. Supt. for Instruction Student Database Manager Director of Operations Delivery Director Transportation Dispatcher/Secretary Principals Devonshire Highland Jane Stenson Old Orchard Jr. High Jr. High Assistant Principal Director of EL Services

10 Long-Range Strategic Plan Vision District 68 strives to be a learning community that inspires our students fullest academic and human potential, encourages continuous improvement, and contributes positively to our diverse, multicultural society. Mission Our mission is to develop children who are confident and creative learners. We provide a rigorous curriculum and a supportive school environment that promotes high achievement, encourages personal growth, and meets the unique needs of each child. Strategic Goals Raising Student Achievement Ensure that all students actively engage in a rigorous curriculum, aligned to Common Core and Partnership for 21 st Century Standards (Cooperation, Critical Thinking, Communication, and Collaboration), which promotes increased student ownership for their learning. Building Community Partnerships to Serve Our Diverse Student Body Pursue partnerships with Village stakeholders in order to enrich learning and to provide wrap-around services for children, families, and community members. Teaching, Learning, and Working with Technology Establish and implement a multi-year technology plan which supports student learning, professional development, and district operations. Maintaining Fiscal Responsibility Maintain long-term financial stability while continuing to improve and expand the quality of programs and opportunities for students.

11 Budget Development Process The budget process is driven by two objectives to provide every child in the district with the best possible educational opportunities and to maximize the use of available resources. Within this framework, the Board attempts to balance the educational needs of students and the resources available to the district from local, state, and federal sources. Development of the budget is an ongoing process. The tentative budget reflects the decisions that have been made throughout the year. The budgeting process begins with enrollment projections the previous fall. The district uses the cohort survival method of projecting enrollments. This method is a calculation of the growth or shrinkage of a class as it moves from grade to grade each fall based on recent trends. Also in the fall, planning begins for capital projects. Overall budget needs for the following year are estimated in preparation for the tentative tax levy to be adopted by the Board in November. The formal tax levy hearing is held in December and the levy is filed with County Clerk by the fourth Tuesday in December. Preliminary staffing requirements are developed in the spring, reflecting both enrollment and any program decisions that have been made for the following year. Per pupil budget allocations are finalized during this period and any special materials or capital needs resulting from curriculum projects, building renovation, or program changes are identified. The tentative budget is presented to the Board in July for comment and input. After making any resulting revisions, the tentative budget is put on display for public review. The budget is formally adopted by the Board in September. Budget Administration Budget administration and management is the process of regulating expenditures during the fiscal year to ensure that they do not exceed authorized amounts and that they are used for intended and proper purposes. The management of the budget is accomplished in a variety of ways: monitoring program implementation; controlling expenditures; tracking revenue receipts; and reporting to the Board and public on fiscal operations. The decision-making philosophy and organizational structure of the district for budgeting combines elements of the management team and school site management concepts. Many of the decisions are formulated by district-level committees or management teams. Staffing levels are also determined at the district level. Per pupil allocations and other building or departmental allocations are managed by the building /department administrator. The overall spending and revenue plans are coordinated by the central office to keep the district s total expenditures within budgeted amounts. -9-

12 Expenditure requests are made electronically by staff through the district s financial software program. The request is checked versus available budget and goes through various levels of approval at the building level and central office before final generation of purchase orders. Receipt of the item or service is verified at the department or building level. The Board of Education approves the listing of bills paid each month. The budget is divided into program or cost-center budgets which are managed by the administrator assigned to that program. Using the financial software system, each administrator can access up-to-date budget and expenditure information for all programs for which they are responsible. The Board receives a monthly report of revenues and expenditures to date. -10-

13 Description of Accounting Structure and Budget Classifications Basis of Accounting and Reporting Similar to most school districts in Illinois, District 68 operates on a cash basis day-today with revenues recorded when received and expenditures recognized when paid. However, the district conforms to the requirements set forth in Governmental Accounting Standards Board Statement 34 which requires the use of modified accrual accounting for the district s year-end financial statement. A Management s Discussion and Analysis (MD&A) section which provides an analytical overview of the district s financial statements is included in the audit report presented to the Board in November. Fund Accounting As mandated by the state, all of the financial activity of the district is segregated into various funds. Each fund is an independent fiscal and accounting unit designed for a specific activity. The district currently uses the following funds: The Education Fund is where the greatest variety and largest volume of transactions are recorded because it includes anything not specifically included in another fund. Most revenues and expenditures directly related to the educational program are shown in this fund including teacher and other instructional salaries and costs. Community services programs such as lunch and child care are also included in this fund. The Education Fund also includes the Special Education sub-fund which covers some special education expenditures. The Tort Immunity Fund (formerly a sub-fund of the Education Fund) is used to cover a portion of the cost of district insurance and risk management. Revenues in this fund include tax levies and interest income. The Operations and Maintenance Fund is where the costs of maintaining and operating school facilities are charged including custodial and maintenance salaries and costs. Revenues in this fund include tax levies, building rental, and interest income. The Capital Improvements Fund reflects the cost of major facility related capital improvements. Projects are funded through bond sales and transfers from the Operations and Maintenance Fund. The Transportation Fund is used to pay the costs associated with transporting children including bus driver salaries and contractual special education transportation. Revenues include tax levies, student fees, and state transportation aid. -11-

14 The Debt Service Fund receives the taxes levied for repayment of debt and makes the payments for interest and retirement of debt. This fund is also used for payment of capital leases, such as copiers, using funds transferred from the Education Fund. The Municipal Retirement Fund is used to pay the pension contributions required of the district for classified staff members who work more than 600 hours per year. It includes the Social Security sub-fund which is used to pay the district share of social security and Medicare and is supported primarily by tax revenue. The Working Cash Fund is the repository for the proceeds of Working Cash Bonds as well as tax levies. No expenditures are made from this fund; however, the money is available to loan to other funds or transfer to the Education Fund. Accounting Classifications Revenues are grouped into three divisions. Local revenue sources include property taxes, corporate personal property replacement tax revenue, student fees, interest income, rental income, tuition, and lunch program receipts. State revenue sources include general state aid as well as special education and transportation reimbursements and categorical state grants. Federal revenue sources include Title I - Low Income, Title II Teacher Quality and Title III - Bilingual. Expenditures are classified by fund, function, object, and program. Budget expenditures are presented by fund (as described previously). Some examples of function classifications are Elementary Classroom Instruction, Social Work Services, and Library Media Services. The object classification denotes the type of expenditure such as salaries, benefits, services, supplies, and capital outlay. Program numbers are used internally to divide budgeted expenditures into specific points of control such as the grade level budgets within each school. -12-

15 Consolidated Budget The District begins the year with sufficient cash reserves. Budgeted revenues and expenditures for all funds are shown on the next several pages. TOTAL REVENUES AND EXPENDITURES Budget Budget % Change Revenues Expenditures Revenues Expenditures Rev. Expend. Education (1) $24,035,600 $25,465,542 $24,317,400 $26,125,181 Tort (8) 234, , , ,000 Education & Tort 24,269,700 25,677,542 24,563,700 26,357, % 2.6% Operations & Maint. (2) 2,729,400 2,626,171 2,842,600 2,588, % -1.4% Capital Proj. (6) 25,000 1,366,199 50,000 1,375, % 0.6% O&M and Capital Proj. 2,754,400 3,992,370 2,892,600 3,963, % -0.7% Transportation (4) 1,485,300 1,462,022 1,499,300 1,387, % -5.1% IMRF/Social Security (5) 1,091,800 1,141,860 1,122,300 1,102, % -3.4% Working Cash (7) 366, , % Sub-total Operating (tax cap) Funds $29,968,100 $32,273,794 $30,503,400 $32,811, % 1.7% Debt Service (3) 2,265,300 2,266,049 2,311,600 2,278, % 0.5% Total All Funds $32,233,400 $34,539,843 $32,815,000 $35,089, % 1.6% 9/14/

16 Revenue Property Taxes The district is heavily reliant upon local property taxes for its revenue. Over three quarters of the money received by the district comes from property taxes. This is important to note as we look at the effects of the tax cap and property tax appeals as well as the impact of new property growth on the financial condition of the district. Property in Cook County is assessed every three years. The district was reassessed for tax year 2016 (taxes paid in 2017). Cook County uses a classification system to assess property based on a percentage of its fair market value. Beginning with the 2009 assessments, these percentages were changed from a multi-tiered system ranging from 16% for residential property to 38% for commercial property to a twotiered system with assessments of 10% for residential and vacant property and 25% for commercial and industrial property. The district has seen a shift in assessments in recent years, with more of the tax burden shifted to residential taxpayers which now make up nearly 50% of our tax base compared to less than 40% ten years ago. When local assessments are complete, a state-derived multiplier is applied intended to bring the total assessment of property in the county to 33% of fair market value. The multiplier for 2016 is , an increase of 5.05% from the previous year. This increase, along with an surge in assessments, resulted in an overall growth of 14.40% in total district EAV for In December of each year the Board of Education submits a tax levy to the county assessor s office. The county extends the levy to the assessed property in the district. This extension is limited by the tax cap and statutory rate limits in individual funds which cannot be exceeded. The budget includes the second installment of 2016 taxes and the first installment of 2017 taxes. Collection levels are projected at 98% of total taxes billed based on recent year collection rates. The first installment tax billing is calculated by the county based on 55% of the previous year s tax bill since the total EAV is not known by the spring billing date. The first installment of 2017 taxes are projected at 51.5% of the 2016 extension based on past collection patterns for the first installment. Since 1995, the district has been subject to the Property Tax Limitation Act (the tax cap). This limits the rate of growth of the total tax extension, excluding Bond and Interest and new growth, to the lesser of 5% or the rate of inflation. Extension of the 2016 levy which was adopted in December is limited to a 0.7% increase over 2015 extension plus new growth. The 2017 levy to be adopted this December will be capped at 2.1% over The tax cap prevents the district from benefiting from significant assessment increases on existing property and brings the tax rate well below the approved maximums. Recent decreases in overall assessments have resulted in an increase in the tax rate. -14-

17 With the limitations of the tax cap, new property growth, which provides additional tax revenue above the cap limit, becomes especially important to district revenue. The district has benefited from increased commercial development in past years but recently the increase has declined. The EAV for new property for 2016 was $1,633,105. One million dollars of new property currently provides approximately $28,000 in additional property taxes. Significant new property provided some relief from the tax cap during the period from 2000 to 2009 when the average new growth total was $17 million per year. However, economic conditions have resulted in a reduction of the annual new growth total to a range of $1 to $2 million, a trend that will likely continue for the next several years. Property tax appeals by commercial properties in the district continue to be a source of concern. Assessment reduction claims can be filed with the Property Tax Appeal Board (PTAB) or in circuit court. The district participates in the Niles Township Property Tax Appeals Cooperative which works to minimize the impact of these claims. The volatility and unpredictability of these refunds, especially those resulting from circuit court cases, create a great deal of uncertainty. Refunds for are projected based on the average of the last several years. These restrictions and unknowns, including the ongoing discussion of school finance reform in Springfield, continue to make prudent management of expenditure budgets and long-range planning a critical issue in the district. Corporate Personal Property Tax Replacement Revenue Corporate personal property tax replacement revenue is generated from taxes on corporate income and the invested capital of utility companies. It was implemented in 1979 to replace revenue that was lost when personal property became exempt from taxation. The district directs this revenue to the Education Fund after the required allocation to the Municipal Retirement Fund. This source of revenue has begun to rebound after several years of decline based on improvements in the state economy. Interest Income The Township School Treasurer is the legal custodian of district funds and invests them along with the other districts in the township to maximize safety and return on investment while retaining sufficient liquidity. Overall, township funds earned an average return of approximately 2% for Interest earned in the Municipal Retirement Fund is required to remain in that fund; other interest can be allocated to any fund by the Board. Budgeted interest is based on a 2.0% return with the interest earned in the Debt Service fund allocated to the Education Fund. Other Local Revenue The budget reflects projected receipts from student fees, the food service program, the early childhood program, and summer school. The billing cycle for student fees was adjusted in resulting in student fees being collecting during two fiscal years and has been readjusted in Revenues from the early childhood program decreased significantly with the Skokie Park District taking over the child care portion of the program. Lunch program fees are expected to remain relatively stable. -15-

18 The district is the administrative agent for the Niles Township ELL Parent Center so revenues from other districts for this program are included in revenue totals. That includes the Parent Mentor Grant that was received in , , and State Aid Recently, the State of Illinois passed a new bill that funds education using an evidence based funding method. The new formula recognizes student need and accounts for differences in local resources. It also closes funding gaps and provides a much more stable system that gest all districts to an adequacy level over time. An additional $350M will be placed into Education and will go to the neediest districts first, however all districts are guaranteed not to have any funding reduced. A majority of categorical aid that used to be received from the state will be included in the new funding formula. It currently includes amounts related to providing special education services (personnel, private facilities, extraordinary service) as well as the ELL Transitional Program of Instruction (TPI) program. Transportation grants will continue to be separated. Payments for these programs are intended to be made one year in arrears; in other words, claims for program are to be paid in four quarterly installments in The state has once again fallen behind, making only two of the four payments scheduled for Mandated categorical claims are budgeted based on receipt of the final payments due and two of the four payments due for this year. Federal Aid The district receives several federal grants. Title I funds are used for reading and math instruction, assessment programs, staff development, and materials related to curriculum implementation. Title II funding is used for staff development and Title III provides some funding for ELL instruction and a majority of the district s share of the ELL Parent Center. Funding for other federal grants has been eliminated in recent years and the introduction of the Every Student Succeeds Act (ESSA) with also have an effect on future Federal aid. Bonds and Other Financing Sources As part of the district s long-range financial strategy, Working Cash Fund bonds are issued in an ongoing cycle. Repayment of each bond sale begins as the previous bonds are fully repaid so there is no increase in property taxes. This allows the district to build reserves, adding stability for future years. Bonds were most recently issued in 2015, with a four year repayment plan and are scheduled to be issued again in

19 S U M M A R Y O F B U D G E T R E C E I P T S A N D E X P E N D I T U R E S Education Tort Oper. & Capital Debt Transp. Retirement Working Total Regular Sp.Ed. ELL Ctr Maint. Projects Service IMRF SS/Med Cash Cash reserves 6/30/ ,207, , , ,529 2,556,753 2,323,579 1,258,238 1,958, , ,556 17,864,143 37,310, Taxes in FY2017 9,831, , ,441,250 1,196, , , ,298 48,207 14,102,882 Cash Bal. 7/1/ ,039, , ,529 3,998,003 2,323,579 2,454,972 2,465, , ,854 17,912,351 51,413,225 Taxes ,721, , ,700 1,415,900 1,200, , , ,000 48,000 14,078,100 Taxes ,015, , ,600 1,321,700 1,095, , , ,900 44,000 13,043,000 Prior Year Taxes/Refunds -450,000-17,500-5,000-60,000-34,000-18,000-8,000-8,500-1, ,500 CPPTR 775,000 35, ,000 Pre-School 75,000 75,000 Summer School 4,000 1,200 5,200 Interest on Investments 400,000 10,000 75,000 50,000 50,000 45,000 15,000 15, , ,000 Lunchroom Sales 228, ,000 Lunch Reimbursement 480, ,000 Textbook Rental 105, ,000 Other Student Fees 34,000 62,000 96,000 Rental of Facilities 88,000 88,000 Misc./Sale of Prop. 4, ,000 2,000 1, ,000 State Aid -General & Poverty 2,200,000 4,000 2,204,000 -Spec. Ed. Categorical 0 450, ,000 -Bilingual Ed./ TPI 0 0 -Other State Grants 1,200 1,200 Federal Aid -Title I 500, ,000 -Title II 0 0 -Title III 40,000 40,000 IDEA & Other 5,000 5,000 Total Receipts 23,138, , , ,300 2,842,600 50,000 2,311,600 1,499, , , ,500 32,815,000 Bond Sale/Property Sale 0 0 Transfers 520, ,000 1,000,000-20, ,000 0 Total Cash Avail. 43,697, , , ,829 6,140,603 3,373,579 4,746,572 3,964,537 1,327,836 1,350,254 17,537,851 84,228,225 Total Disbursements 24,914, , , ,000 2,588,694 1,375,000 2,278,000 1,387, , , ,089,271 Cash Balance 6/30/ ,783, , ,829 3,551,909 1,998,579 2,468,572 2,576, , ,754 17,537,851 49,138,954 Less 2017 Advance Taxes 9,721, , ,700 1,415, ,200, , , ,000 48,000 14,078,100 Cash Res. 6/30/2018 9,061, ,900 73, ,129 2,136,009 1,998,579 1,268,572 2,087, , ,754 17,489,851 35,060,854 Transfer Detail Transfer Interest Earned in Debt Service Fund to Education Fund 50,000 Partial abatement of Working Cash Fund to Education Fund 500,000 Pledged Transfer to Debt Service Fund for Capital Leases 30,000 Pledged Transfer to O&M Fund for deficit from WC 300,000 Pledged Transfer to Capital Projects Fund for Building Projects 1,000,000 9/7/2017

20 REVENUE DETAIL Actual EDUCATION FUND as % of Actual Actual Budget Actual Budget Budget Taxes: Current General 9,616,726 9,966,161 9,684,900 9,831, % 9,721,500 First Prior Year General 8,690,603 9,038,059 8,925,000 8,923, % 9,015,500 Other Prior Year General -588, , , ,853 63% -450,000 Current Special Educ. 474, , , , % 514,900 First Prior Year Spec. Educ. 437, , , , % 474,800 Other Prior Year Spec. Educ. -29,575-21,588-17,500-14,299 82% -17,500 CPPRT 883, , , , % 775,000 Total Taxes 19,485,213 20,320,291 19,862,900 20,335, % 20,034,200 Tuition: PreSchool 136, ,670 75,000 71,864 96% 75,000 Summer School 5,188 5,070 5,000 3,990 80% 4,000 Total Tuition 141, ,740 80,000 75,854 95% 79,000 Total Interest on Investments 355, , , , % 400,000 Food Service Program: Lunch Sales - Students 205, , , , % 225,000 Lunch Sales - Adults 0 2,992 3, % 3,000 State Reimbursement 5,431 2,850 5,000 2,671 53% 5,000 Federal Reimbursement - Brea 63,585 73,022 60,000 79, % 75,000 Federal Reimbursement - Lun 383, , , ,777 94% 400,000 Total Food Service 658, , , , % 708,000 Student Fees & Other: PTA Dues Pass Thru 3, ,390 0% 0 Yearbook 4,474 5,882 4,500 3,026 67% 3,500 Outdoor Education 10,728 10,962 8,000 9, % 9,000 Gym Uniforms & Calculators 8,655 7,905 5,500 8, % 8,000 Technology 37,430 52,035 13,500 17, % 13,500 Textbook Rental 143, ,412 33,000 41, % 105,000 Refund of Prior Year Expend. 5,977 10,006 2, , % 2,000 Other 15,474 9,366 2,000 4, % 2,000 Total Fees & Other 229, ,027 68, , % 143,000 State Aid: General State Aid 1,459,938 1,498,226 1,663,000 1,662, % 2,200,000 Spec. Ed. - Private Facilities 101, ,244 83,000 49,632 60% 0 Spec. Ed. - Services & Hold H 187, , , , % 0 Special Education - Personnel 266, , , ,258 95% 0 Spec. Ed. - Summer School 0 3,234 5, % 0 TPI (ESL Program) 74,931 71,455 75,000 3,232 4% 0 Misc Grants (Career Dev, Libr 2,606 1,085 1, % 1,200 Total State Aid 2,093,232 2,302,983 2,283,200 2,167,451 95% 2,201,200

21 EDUCATION FUND (Continued) Actual as % of Actual Actual Budget Actual Budget Budget Federal Aid: Title I 491, , , , % 500,000 Title II - Teacher Quality 57,805 31,160 49,000 65, % 0 Title III - LIPLEPS 60,384 40,626 39,000 41, % 40,000 IDEA 4,461 5,430 5,000 9,578-5,000 Other Grants ,180-0 Total Federal Aid 613, , , , % 545,000 ELL Parent Center ELL Center District Fees 145, , , ,354 93% 145,000 Parent Mentor Program 46,450 65,600 65,000 22,500 35% 35,000 Other Local Revenue 4,849 2,819 2,000 4, % 2,000 Federal Grant/ICIRR Grant 13, ,000 10,553-25,000 Total ELL Parent Center Rev. 210, , , ,142 73% 207,000 TOTAL EDUCATION FUND 23,786,928 24,764,238 24,035,600 24,864, % 24,317,400 OPERATIONS & MAINTENANCE FUND as % of Actual Actual Budget Actual Budget Budget Taxes: Current Operations & Maint. 1,349,855 1,408,871 1,418,000 1,441, % 1,415,900 First Prior Year Oper. & Maint. 1,225,951 1,268,631 1,242,400 1,261, % 1,321,700 Other Prior Year Oper. & Main -83,540-60,453-60,000-40,042 67% -60,000 Total Taxes 2,492,266 2,617,048 2,600,400 2,662, % 2,677,600 Other Local Revenue Interest on Investments 70,210 64,247 60,000 78, % 75,000 Rental of Facilities 54,079 68,140 67,000 74, % 88,000 Miscellaneous Grants 38, Refund of Prior Year Exp. / Ot 0 0 2, ,400 2,000 Total Other Revenue 163, , , , % 165,000 TOTAL O&M FUND 2,655,293 2,749,434 2,729,400 2,934, % 2,842,600 Actual CAPITAL PROJECTS FUND as % of Actual Actual Budget Actual Budget Budget Interest 12,661 29,011 25,000 51, % 50,000 TOTAL CAP. PROJ. FUND 12,661 29,011 25,000 51, % 50,000 9/14/17

22 Transportation Actual as % of Actual Actual Budget Actual Budget Budget Taxes: Current 474, , , , % 489,100 First Prior Year 403, , , , % 465,000 Other Prior Years -27,313-19,915-18,000-13,191 73% -18,000 Total Taxes 851, , , , % 936,100 Student Fees & Other: Regular Bus Fees 76,064 73,953 60,000 27,520 46% 60,000 Outdoor Education Bus 2,146 2,436 2,000 2, % 2,000 Summer School Bus 1,669 1,638 1,200 1, % 1,200 Interest 34,743 43,298 30,000 48, % 45,000 Fees from other Districts , % 1,000 Misc / Sale of Bus / Bus Renta 0 33,390 6, % 0 Total Fees & Other 115, , ,700 79,808 78% 109,200 State Aid: Regular Transp. Reimb. 3,109 3,835 4,000 2,174 54% 4,000 Spec. Ed. Transp. Reimb. 420, , , ,616 53% 450,000 Total State Aid 423, , , ,790 53% 454,000 TOTAL TRANSPORTATION 1,390,413 1,620,782 1,485,300 1,262,009 85% 1,499,300 IMRF/SS FUND Actual as % of Actual Actual Budget Actual Budget Budget Taxes: Current IMRF 266, , , , % 280,000 First Prior Year IMRF 245, , , , % 256,900 Other Prior Years IMRF -16,595-12,122-8,000-8, % -8,000 Current SS / Medicare 276, , , , % 280,000 First Prior Year SS / Medicare 294, , , , % 256,900 Other Prior Year SS / Medicar -20,178-14,503-8,500-9, % -8,500 CPPRT 35,000 35,000 35,000 35, % 35,000 Total Taxes 1,081,116 1,084,842 1,069,800 1,084, % 1,092,300 Interest - IMRF 11,502 13,504 10,000 15, % 15,000 Interest- SS/Medicare 14,642 16,455 12,000 17, % 15,000 Total Interest 26,144 29,958 22,000 33, % 30,000 TOTAL IMRF FUND 1,107,260 1,114,800 1,091,800 1,117, % 1,122,300 9/14/17

23 WORKING CASH FUND Actual as % of Actual Actual Budget Actual Budget Budget Taxes: Current 49,880 48,947 47,300 48, % 48,000 First Prior Year 46,292 46,879 46,100 43,826 95% 44,000 Other Prior Years -3,237-2,283-1,500-1, % -1,500 Total Taxes 92,935 93,543 91,900 90,521 98% 90,500 Interest 275, , , , % 335,000 TOTAL WORKING CASH 368, , , , % 425,500 TORT IMMUNITY FUND Actual as % of Actual Actual Budget Actual Budget Budget Taxes: Current 118, , , , % 128,700 First Prior Year 109, , , , % 112,600 Other Prior Years -11,063-5,392-5,000-3,571 71% -5,000 Total Taxes 217, , , , ,300 Interest 8,867 10,119 9,000 10, % 10,000 TOTAL TORT FUND 225, , , , % 246,300 DEBT SERVICE FUND Actual as % of Actual Actual Budget Actual Budget Budget Taxes: Current 1,145,920 1,212,643 1,204,600 1,196,735 99% 1,200,000 First Prior Year 1,090,665 1,076,967 1,054,700 1,085, % 1,095,600 Other Prior Year -75,526-53,782-34,000-35, % -34,000 Total Taxes 2,161,060 2,235,828 2,225,300 2,246, % 2,261,600 Interest 45,084 48,622 40,000 50, % 50,000 TOTAL BOND & INT. FUND 2,206,144 2,284,449 2,265,300 2,297, % 2,311,600 TOTAL ALL FUNDS 31,752,773 33,248,667 32,233,400 33,214, % 32,815,000 SALE OF BONDS 6,366,195 SALE OF PROPERTY

24 Expenditures Program staffing is based on established class size guidelines. The budget includes staffing for three sections of each grade at each elementary school; however, final hiring will not occur until enrollments are finalized in early fall. Total staffing is approximately equal to last year: Addition of one Math and one Reading Specialist at each elementary school; Reduction of three.6 FTE Instructional Coaches; EL Director position increased to 1.0 FTE; Addition of one EL teacher at each elementary school; Foreign language staffing increased based on new OOJH schedule; Detailed staffing information is provided at the end of this section. Per pupil allocations for various programs for are shown below. Most allocations were frozen for However, adjustments were made in some programs to reflect current needs. The majority of instructional materials for the core curriculum are purchased from district-wide budgets based on program needs. Budgets for many programs include special allocations for specific needs (e.g. copier maintenance, furniture). Per Pupil Allocation Program for Instructional Materials K-5 Program Kindergarten Grade 2 $18.75 Grade Field Trips K-5 Special Education Resource Programs K-5 Special Education Instructional Programs K-5 Art Program Special Education Classrooms K-5 School-Wide Programs School-Wide Programs K-8 Library Learning Centers K-8 Cultural Arts 2.10 K-8 Instrumental Music 2.05 K-8 Music 2.05 K-8 Physical Education & Recreation 3.25 K-8 Technology

25 The budgeted expenditures for NTDSE are returning to full expenditure levels based on the conclusion of temporarily distribution of excess fund balance by NTDSE. The Instructional Improvement budget includes approximately $170,000 for materials related reading, math, and science curricula aligned to the new standards. The budget includes estimated expenditures and the removal of offsetting grant funding for the Parent Mentor program. All three District 68 elementary schools have participated since the school year. The net cost to District 68 is approximately $22,500. The Bond & Interest Fund budget reflects the second of three principal payments for the Working Cash Bonds issued in 2015 as well as applicable interest on those bonds and capital lease payments for copiers. IMRF Fund and Tort Fund expenditures increase based on normal cost increases

26 Staffing Full-time Pupil/ Full-time Pupil/ Equivalent Teacher Equivalent Teacher Enrollment Teachers Ratio Enrollment Teachers Ratio General Education Devonshire * Highland * Jane Stenson Sub-total Elementary Old Orchard Sub-total Regular Education 1, , Special Education ** Pre-School (@.5 FTE) Elementary Old Orchard Sub-total Special Education Specials and Support Library Art General Music Instrumental Music Physical Education / Health Instructional Support K-5 ELL At-Risk/ELL Pre-School Gifted Education Specialists Speech Social Work Services Psychology Services Instructional Technology Sub-total Specials and Support Total Enrollment and Fulltime Equivalent Staffing 1, , * Includes ELL Kindergarten ** Enrollments represent instructional level special education students only (greater than 50% in SE) 9/14/

27 EXPENDITURE DETAIL EDUCATION FUND Elementary Schools K-5 Teacher 4,291,849 4,741,654 Instructional Assistant 415, ,532 Title I 99, ,338 Sub-Total 4,807,090 5,146,524 Equipment Maintenance / Printing / Field Trips 40,660 39,960 Instructional Materials, Supplies 95,454 94,523 Sub Total 136, ,483 Capital Outlay Furniture & Equipment 21,000 9,000 PROGRAM TOTAL 4,964,204 5,290,007 Enrollment 1,126 1,086 Building-Wide/District-Wide Elementary Programs 20,793 22,080 Program Costs/Travel 32,700 32,700 Instructional Materials Sub Total 32,900 32,937 PROGRAM TOTAL 53,693 55,017 Enrollment /14/

28 EDUCATION FUND (CONTINUED) Old Orchard Junior High Subject Areas Teacher 2,530,793 2,560,521 Sub Total 2,530,793 2,560,521 Instructional Materials & Supplies 13,500 14,500 Sub Total 13,500 14,500 PROGRAM TOTAL 2,544,293 2,575,021 Enrollment Old Orchard Junior High Building-Wide Programs 93, ,066 School Resource Officer 52,000 54,000 Student Programs 1,260 1,260 Equipment Maintenance / Printing/Field Trips 38,672 33,564 Instructional Materials 41,279 41,773 Sub Total 133, ,597 Capital Outlay Furniture & Equipment 6,000 6,000 PROGRAM TOTAL 232, ,663 9/14/

29 EDUCATION FUND (CONTINUED) Pre-School Special Education / At-Risk Class Teacher 195, ,530 Instructional Assistant 70,150 74,500 Sub Total 266, ,030 Field Trips Instructional Materials, Supplies 8,117 5,532 Sub Total 8,847 6,242 PROGRAM TOTAL 274, ,272 Enrollment (1/2 day program counted as.5 FTE) 71 Elementary Special Education Classes Teacher 766, ,666 Instructional Assistant 165, ,350 Sub Total 931, ,016 Instructional Materials 2,609 2,229 Sub Total 2,609 2,229 PROGRAM TOTAL 934, ,245 Enrollment Junior High Special Education Classes Teacher 511, ,903 Instructional Assistant 141, ,300 Sub Total 652, ,203 Instructional Materials 1,591 1,936 Sub Total 1,591 1,936 PROGRAM TOTAL 653, ,139 Enrollment /14/

30 EDUCATION FUND (CONTINUED) District Wide Special Education Tuition & Administration Professional & Homebound Tutors 141, ,519 Teacher Assistant 300, ,965 Sub Total 442, ,484 Contract Services 19,900 34,500 Special Program Supplies & Membership 15,600 15,600 Private School Tuition/Room & Board 400, ,000 NTDSE Tuition 990,000 1,250,000 NTDSE Membership, Fee for Service & Oper. 440, ,000 Sub Total 1,865,500 2,110,100 Furniture & Equipment 23,000 18,000 Sub Total Capital Outlay 23,000 18,000 PROGRAM TOTAL 2,330,697 2,548,584 ELL / Title III Program Professional 600, ,868 Sub Total 600, ,868 Training/consultants 2,000 2,000 ELL Newcomer Center 23,100 22,800 ELL Parent Mentor Program 22,500 22,500 Services - Title III 25,500 25,500 Instructional Materials 6,636 7,207 Instructional Materials - Title III 5,000 5,000 Sub Total 84,736 85,007 Capital Outlay 0 0 PROGRAM TOTAL 685, ,875 9/14/

31 EDUCATION FUND (CONTINUED) K-8 Physical Education & Health Teacher 848, ,878 Sub Total 848, ,878 Game Officials & Other Services 4,600 4,600 Gym Uniforms (pass-thru) 8,900 11,000 Instructional Materials 11,669 8,585 Sub Total 25,169 24,185 Capital Outlay 2,500 2,500 PROGRAM TOTAL 876, ,563 Enrollment 1,812 1,785 K-8 Art Teacher 178, ,423 Sub Total 178, ,423 Equipment Maintenance Instructional Materials 21,336 20,896 Sub Total 21,586 21,146 PROGRAM TOTAL 199, ,569 Enrollment 1,812 1,785 Cultural Arts Cultural Arts Programs 3,728 3,673 PROGRAM TOTAL 3,728 3,673 Enrollment 1,812 1,785 9/14/

32 EDUCATION FUND (CONTINUED) K-8 General Music Teacher 302, ,398 Sub Total 302, ,398 Equipment Maintenance Instructional Materials 2,806 2,752 Sub Total 3,739 3,685 Capital Outlay PROGRAM TOTAL 306, ,833 Enrollment 1,812 1,785 Instrumental Music Teacher 302, ,022 Sub Total 302, ,022 Equipment Maintenance 1,925 1,925 Instructional Materials 3,208 3,186 Membership Sub Total 5,533 5,511 Capital Outlay 1,500 1,500 PROGRAM TOTAL 309, ,033 Enrollment 1,598 1,749 9/14/

33 EDUCATION FUND (CONTINUED) Library Media Centers Professional 320, ,533 Classified 94,692 90,371 Sub Total 414, ,904 Library Materials 27,477 26,332 Sub Total 27,477 26,332 PROGRAM TOTAL 442, ,236 Enrollment 1,812 1,785 District Wide Advanced Learning Program Teacher 457, ,042 Sub Total 457, ,042 Instructional Materials 2,640 2,624 Sub Total 2,640 2,624 PROGRAM TOTAL 460, ,666 9/14/

34 EDUCATION FUND (Continued) Social Work Services Professional 429, ,158 Sub Total 429, ,158 Services 1,000 1,000 Resource Materials & Memberships 2,264 2,231 Sub Total 3,264 3,231 PROGRAM TOTAL 432, ,389 Enrollment 1,812 1,785 Psychology Services Professional 215, ,539 Sub Total 215, ,539 Services 3,500 3,500 Resource Materials & Memberships 2,717 2,677 Sub Total 6,217 6,177 PROGRAM TOTAL 221, ,716 Speech 267, ,335 Services 1,000 1,000 Resource Materials & Memberships 1,812 1,785 Sub Total 2,812 2,785 PROGRAM TOTAL 270, ,120 9/14/

35 EDUCATION FUND (Continued) Health Services 155, ,041 Services Health Supplies 4,780 4,747 Membership Sub Total 5,400 5,367 Capital Outlay 0 0 PROGRAM TOTAL 161, ,408 Enrollment 1,812 1,785 Instructional Improvement / Grant Programs Curriculum Planning & Leadership Stipends 140, ,000 Academic Support 398,944 0 Title I 3,000 3,000 Substitutes, Temorary Empl. & Add'l Staffing 490, ,000 Sub Total 1,031, ,000 Grant Program Services (consultants, assessment) 186, ,500 Workshops/Consultants/Travel/Equipment Maint. 47,000 39,650 Grant Program Materials 31,550 51,000 Other Instructional Materials 200, ,800 Membership 1,200 1,200 Sub Total 467, ,150 Capital Outlay Grant Funded Equipment 0 0 Other Equipment 0 0 Sub Total Capital Outlay 0 0 PROGRAM TOTAL 1,498,944 1,072,150 9/14/

36 EDUCATION FUND (Continued) School Administration Professional 741, ,093 Classified 300, ,033 Sub Total 1,041,685 1,079,126 Travel, Workshops & Other Services 12,325 10,221 Supplies 11,629 11,559 Membership 2,600 2,600 Sub Total 26,554 24,380 Capital Outlay 12,000 16,000 PROGRAM TOTAL 1,080,239 1,119,506 Enrollment 1,812 1,785 District Administration Professional 463, ,751 Classified 440, ,704 Sub Total 903, ,455 Recruitment and Employment Exams 6,500 6,500 Consultants & Tax Appeal Consortium 50,000 35,000 Audit, Collection & Bank Fees 44,500 47,000 Legal Fees 50,000 50,000 School Township Treasurer 110, ,000 Equipment Maintenance and Rental 5,500 8,500 Administrative Travel and Workshops 10,500 9,000 Postage 22,500 20,000 Newspaper Notices / Printing 25,000 21,000 Board Travel & Expense 7,500 11,500 Board Materials 4,000 7,000 Supplies & Meeting Expense 45,218 51,933 Board & Administrative Memberships 22,500 23,000 Sub Total 403, ,433 Capital Outlay 15,000 15,000 PROGRAM TOTAL 1,322,207 1,377,888 9/14/

37 EDUCATION FUND (Continued) Summer School Teacher 23,500 25,500 Assistant Sub Total 24,000 26,000 Instructional Materials/Participation Rebates 3,500 3,500 Sub Total 3,500 3,500 PROGRAM TOTAL 27,500 29,500 District Delivery/Internal Services 23,387 20,361 Equipment Maintenance 9,500 9,500 District Supplies 7,000 7,000 Sub Total 16,500 16,500 PROGRAM TOTAL 39,887 36,861 District Technology Support Professional 121, ,013 Classified 207, ,211 Sub Total 328, ,224 Technology Support and Staff Development 40,000 31,500 Software and Equipment Maintenance 125, ,000 Telecommunications 85,000 90,000 Supplies 60,000 40,000 Membership Sub Total 310, ,150 Capital Outlay 315, ,000 PROGRAM TOTAL 954,321 1,003,374 9/14/

38 EDUCATION FUND (Continued) School Lunch Program Lunch Service 8,400 8,500 Contract Food Service 548, ,000 Equipment Maintenance / Garbage Removal 6,000 6,000 Supplies 4,000 4,000 Sub Total 558, ,000 Capital Outlay Equipment 25,000 40,000 PROGRAM TOTAL 591, ,500 Enrollment 1,812 1,785 Insurance and Employee Benefits Employee Benefits District TRS Contributions 222, ,030 Employee Insurance 2,572,825 2,565,395 Retirement Recognition/Termination Payments 356, ,270 Tuition Reimbursement 55,000 55,000 Sub Total Benefits 3,206,998 3,164,695 Unemployment Compensation 15,000 15,000 Uninsured Losses and Loss Control Program 5,000 5,000 Sub Total 20,000 20,000 PROGRAM TOTAL 3,226,998 3,184,695 9/14/