Waukegan Public Schools District 60

Education FundRevenueFurther explanation follows outlining the major changes to Education Fund revenue for 2011/12. Revenuesare expected to increase over the 2010/11 unaudited actuals. The $3.4 million increase is the result ofa $6.1 million increase in state revenue due to payment of prior year delayed payments and $431 thousandincrease in local primarily due to a nominal increase in property tax revenue.WPS60, as well as other Districts across the state, grappled with the possibility of decreased revenue and latepayments from the state of Illinois. For the past two years, the District has been insulated through funds fromARRA and prudent fiscal management and thusly, has been able to meet financial needs. This year, however,with exhausted ARRA funds, the District will likely have to deal with increased financial stress due to latepayments.Local RevenueLocal property tax receipts increased slightly due to a one year lag in EAV years. Waukegan’s equalizedassessed values of homes reduced significantly last year and will therefore affect tax receipts for tax year 2011.State RevenueGeneral State Aid payments, unlike other state grant revenues, are not expected to be late. The district hashistorically received 22 payments each fiscal year. Due to uncertain fiscal conditions at the state level, theDistrict has chosen to budget based on 21 payments to prevent overstating revenue receipts. Because WPS60'spoverty level increased significantly, GSA revenue in the Education Fund is expected to increase byapproximately $10.3 million over FY 2010/11 despite reducing its entitlement by almost $4 million. It isimportant to note that fewer monies are distributed to other funds resulting in a larger distribution in theEducation Fund.Approximately $3.8 million in back payments are scheduled to be paid on or before December 2011.Federal RevenueExhausted ARRA funds account for approximately $7.8 million of the reduction in federal funds. All otherfederal sources account for an approximate $1.1 million reduction.ExpendituresThe focus on the expenditure budgeting begins with payroll and benefits. As the largest portion of theoperating budget, competitive pay raises were a priority in the development of the budget. The District iscurrently negotiating all union contracts.In addition to potential compensation changes, several personnel positions were added to the budget to addressitems identified in the district’s Strategic Plan.99102