FINANCIAL SECTION - School District U-46

Economic Condition and Financial Outlook
We have noted above the impact of state budget reductions on School District U-46 totaling an
expected $21.7 million during FY 2011. Most of the reduction in state funding affecting U-46 is
in General State Aid which is projected to drop from $66 million last year to $50.7 million in FY
2011.
In addition to state funding reductions for the fiscal year, the District also anticipates another
year of delayed payments for many state programs, including all mandated categoricals
including Special Education, Bilingual Education, and transportation reimbursement.
In addition to state funding issues, we cannot ignore the impact the state and local economy is
having on our communities.
For example, in May 2010 the unemployment rates in Streamwood, Hanover Park, and
Streamwood were higher than the statewide unemployment rate. The below chart demonstrates
the unemployment history (which has not been seasonally adjusted) for our communities and
counties since December 2008.
Dec. 2008 Apr. 2009 May. 2009 Dec. 2009 Apr. 2010 May. 2010
United States 7.1% 8.6% 9.1% 9.7% 9.5% 9.3%
Illinois 7.4% 9.4% 9.8% 10.8% 10.7% 10.0%
Counties
Cook County 7.1% 10.0% 10.6% 10.8% 10.9% 10.7%
Kane County 7.4% 10.2% 10.4% 11.2% 11.0% 10.5%
DuPage County 5.4% 8.2% 8.8% 8.6% 8.8% 8.6%
Cities
Elgin 10.4% 13.3% 13.4% 15.0% 13.4% 12.3%
Hanover Park 9.2% 10.9% 11.1% 13.1% 11.7% 11.2%
Streamwood 7.4% 10.4% 11.0% 11.5% 11.3% 11.0%
Carol Stream 5.9% 9.0% 9.9% 9.1% 9.3% 9.1%
Bartlett 5.7% 8.6% 9.2% 8.9% 9.0% 8.9%
Hoffman Estates 5.4% 8.1% 8.9% 8.2% 8.5% 8.7%
Bankruptcies in the Illinois Eastern Division, which includes counties served by U-46, doubled
between 2007 (24,619) and 2009 (55,559). For the first six months of 2010, bankruptcies
currently stand at 32,996.
In addition to bankruptcies, recent increases in property foreclosures also continue to be a
concern.
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