District 95 faces possible $1.7 million deficit

With the COVID-19 pandemic continuing to rage as the school year opens, the financial picture is hazy at Carbondale Elementary School District 95, the board of education learned at its meeting last week.

Dr. Eric Trimberger, the district's business manager, told the board that the proposed 2020-21 budget calls for operating expenses of around $24.5 million, up from around $24.365 million this past year.

And due to a reduction in sales-tax revenue and uncertainty over when property-tax revenues will flow into the schools, Trimberger is projecting a budget shortfall of around $1.7 million. Almost $500,000 of that is due to reduced property taxes and corporate taxes, he added.

"Business has been way down, and there's a concern over how much we're going to receive from sales taxes," he said.

Trimberger cited the closures of Carbondale's larger retailers, namely Pier 1 Imports, Macy's and JC Penney, for having an impact on District 95's finances.

Looking at how COVID-19 has impacted sales-tax revenue, Trimberger said sales taxes were down 14 percent for March, and down 28 percent for April. "We're hoping that's the worst of it."

Figures for May are yet to come, in the first week of next month.

Further shortfalls in tax revenues will "have a pretty significant impact on our ability to do future projects", Trimberger said.

He said he was basing the budget figures on a full in-person learning model, and by starting the school year going fully remote, there will be some savings.

For example, several para-professional positions will remain unfilled until the district returns to in-person attendance, and there will also be savings on extracurricular costs, he said.

However, transportation costs are up $449,000 this coming year, due to the minimum wage increase to $15 an hour and the expense of a new bus contract and air-conditioned bus fleet.

Trimberger added that District 95 stands to receive more transportation subsidies from the state due to the increased costs of the new contract with Robinson Transportation.

The cost of supplies will decrease $415,000 due to that fact that Chromebook computers for all students were purchased out of last year's budget, Trimberger said.

"There will be some final adjustments to the budget," Trimberger said, once the Illinois State Board of Education releases grant figures.

Board member Carlton Smith expressed concern over the district's possibly dire financial future.

"Seems like the worst is yet to come this fall. This is going to put us in a real bind," he said.

Trimberger said there is much uncertainty, and while he had said the $1.7 million deficit was a realistic number, the situation might not be as bad as it seems.

"We've never experienced a pandemic like this that has shut down the entire economy," Trimberger said. If property taxes come in as they have in past years, District 95 should be solvent, but if the taxes are late, "we might have to open a line of credit with the Bank of Carbondale".

Distict 95's budget is available for viewing until Sept. 17 at the Lakeland Administrative Center on Giant City Road, with a public hearing on the budget set for 7 p.m. Sept. 17.