What's Happening?
District 233, which oversees Homewood-Flossmoor High School, is confronting financial challenges due to a decline in state support and a reduction in its reserve fund. Financial consultant Bob Grossi presented
a report to the school board on October 21, highlighting that the next decade will be more challenging financially than the previous one. The district has benefited from an additional $15 million in state funding over the past eight years, along with Property Tax Relief Grants that have allowed for tax abatements. However, the state has paused the Property Tax Relief Grant, which previously contributed between $2 million and $3 million annually to the district's budget. This year, the budget is expected to grow by only $200,000, a significant decrease from the 4.4% growth seen in 2017. The district's budget is $49 million, with 54% coming from property taxes and 31% from state support. The board is tasked with maintaining financial solvency with just 2% revenue growth.
Why It's Important?
The financial challenges facing District 233 are significant as they impact the district's ability to fund essential services and projects. With state funding declining and the reserve fund reduced, the district must carefully manage its finances to ensure long-term sustainability. The board's decisions will affect the quality of education and the district's ability to undertake necessary projects, such as building maintenance and technology updates. The situation underscores the broader issue of school funding and the reliance on state support, which can be unpredictable. The district's financial health is crucial for maintaining educational standards and supporting the community's needs.
What's Next?
The school board will need to make strategic decisions to navigate the financial challenges ahead. This includes prioritizing projects and managing expenses to align with the limited revenue growth. The board will also need to consider potential salary increases, health insurance costs, and other non-capital expenses. As the district has reduced its reserve fund to six months, careful financial planning will be essential to avoid further depletion. The board's approach will be critical in ensuring the district remains financially stable while continuing to provide quality education.
