Jan. 27, 2010
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Board considers bolstering fund balance combined with potential cuts to maintain a balanced budget

At its Jan. 26 Committee of the Whole meeting, the Barrington 220 Board of Education discussed amending its current policy regarding unrestricted fund balances, or savings, from a minimum 20 percent to a minimum 25 percent of revenues. The Board of Education feels a 20-percent fund balance would not provide enough assets in reserve for the district should economic circumstances impact its ability to meet future financial obligations. The Board also expressed a desire that the fund balance should not exceed 40 percent to ensure the school district honors its commitment to expend revenues responsibly. The Board will discuss final changes to this policy again in February.

The Board believes the proposed policy change is a fiscally prudent approach to respond to difficult conditions beyond its control. For example, the State of Illinois is $2.2 million behind in its obligations to the school district thus far in the fiscal year. There is reason to believe the state may significantly reduce its funding in subsequent years for reimbursement of some costs for mandated services, such as transportation and special education.

To maintain its commitment to a balanced budget, the Board also began conversations about reducing expenditures beginning with the 2010-11 school year. The Board is reviewing numerous potential scenarios, including changes to staffing levels and class sizes, decreases in existing programs and services, and reductions in operations and maintenance, among other combinations. Following continued discussions and input sessions, a final decision about specific cuts will be made at a subsequent Board meeting.

These possible savings would be in addition to $1.5 million in budget decreases already enacted earlier this school year. The total annual budget of the school district is approximately $119 million.