The Bond County Unit 2 school board has amended its 2016-17 budget to reflect the lack of funds received from the state.
It is anticipated the budget will end with a deficit of $679,000 with the state still owing the district $1.1 million for the fiscal year.
Reductions in state funding received over the last few years have led to fund reserves decreasing. The education fund will have about $800,000 when the fiscal year ends and the transportation fund is down to $78,000.
Superintendent Wes Olson said the monthly payroll is about $1.5 million.
Olson said the situation has caused a crucial situation with cash flow. He further explained that while general state aid was paid, mandated categorical funding was withheld. Olson states that the state is not meeting their constitutional obligation to fund education for students of IL.
Click below for more of Olson’s comments on fund balances:
To provide temporary relief to the cash flow situation, the school board has opened a line of credit with Bradford National Bank to borrow up to $2.5 million and transferred $615,100 from the working cash fund to the education fund.
Olson said he received good news that real estate bills will be sent sooner than last year, which means taxing districts will get tax money earlier.
Superintendent Olson emphasized the district faces a revenue issue, not a spending issue, because reductions have been made over the past few years, mostly by staff attrition.
He said any more reductions would have a dire affect on programs.
The superintendent and board members are hoping the state legislature and governor pass a complete budget and then come through with the promised payments to districts.