District 186 school board approves deficit budget; tax shortfall big part of it

A significant shortfall in the replacement tax paid out to Springfield District 186 was one of the reasons for a $10.3 million deficit in the fiscal year budget.

The district must turn the budget, which runs for the 2023-24 school year, into the Illinois State Board of Education by the end of the month.

The board adopted the budget on a unanimous vote at Monday's meeting.

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The overall operating budget was $205 million, 85% of which goes towards salaries and other reimbursements.

The news isn't all bad.

It is projected that the district will have a fund balance of around 24% or $44 million in the overall operating funds.

Board President Micah Miller said corrections to the budget in the spring will "almost certainly" narrow that deficit.

The Corporate Personal Property Replacement Tax, or replacement tax, is based on a property tax determined by the state and then doled out to the school districts.

The CPPR was calculated and paid out in early August, explained Superintendent Jennifer Gill. The unanticipated cut of a little over $6 million came at a time when the budget had already been developed and staffing was already in place, she added.

In 2022, said budget director Steve Miller, the district budgeted to receive $16 to $18 million in CPPR, but received $21 million. That extra money was put into the fund balance, he said.

"Just the way of school district funding. We're always just a little bit unsure of everything we're going to get every year," Gill added. "We're going to have to tighten our belts a little bit."

Micah Miller said that spiraling healthcare insurance costs, evidence-based funding shortfalls and the spend-down of Elementary and Secondary School Emergency Relief money were "other moving pieces here."

Despite a robust fund balance, Miller and Gill said it would have been a disservice to taxpayers to move money from there to cover the deficit.

Keeping a minimum of 15% in the fund balance helps districts with bond ratings, Gill said.

Board member Anthony Mares said his original intention was to vote "no" on the budget, but after conversations with Gill and Miller "I put full faith in you that you are going to be responsible not only to the board but to the taxpayers as we continue to go forward."

Mares, though, expected regular updates on the budget at meetings.

This story will be updated.

Contact Steven Spearie: 217-622-1788; sspearie@sj-r.com; X, twitter.com/@StevenSpearie.

This article originally appeared on State Journal-Register: Springfield District 186 passed a deficit budget Monday