Financial Forecast Brighter Than Expected for D122

Every six months, the New Lenox School District 122 board is updated with the district's five-year financial forecast to stay on top of district finances and get a glimpse into the future.

During a strategic planning session Monday night, the board was happy to hear that six months after facing a $3.2 million budget deficit, the school district have a surplus of about $1 million at the end of fiscal year 2011.

That's thanks to an additional and unexpected state payment and less spending than the district had budgeted, business manager Harold Huang said. The surplus will also offset a projected deficit in fiscal year 2012.

Additionally, in 2012 and 2013, the district will get some help from local tax revenue sources as more development comes into New Lenox. Silver Cross Hospital will open in February 2012, and there are also the NexCore medical services building and outlet mall developments. That's projected to bring new growth to $36 and $39 million, respectively, compared to just $9 million in 2011.

Negotiating a new collective bargaining agreement also bettered the district's situation; teacher salaries will remain flat through 2014, and health insurance costs are increasing just 1 percent after the district budgeted for 8 percent.

The brighter financial outlook of course doesn't come without challenges, including the continuously waning state aid, which has dropped nearly 50 percent since 2007 in addition to various grants being eliminated.

To see the full presentation, click on the PDF to the right of this article. You'll find information on revenue sources, district expenditures and class sizes.