D135 Officials: State Funding Drop Sends Transportation into Deficit

transportation fund is facing a growing deficit, according to five-year projections.

State funding has been cut by 40 percent, in addition to payments already owed to the district, explained Superintendent Dennis Soustek after a Committee of the Whole meeting Monday, Feb. 6.

The projections show the fund is $663,580 in the red for the 2011-12 school year. If unchecked, that number will steadily increase to more than $1 million by the 2016-17 school year.

"The district does not want to increase the money for the transportation fund by taking away dollars for education," Soustek said. "We're showing that the state owes us. But that doesn't mean that we're not going to be offering transportation for parents."

Soustek said the state cutting its budget, as well as its outstanding balance, is a "two-edged sword."

"We'll see where the state goes with it," Soustek said. "We believe we're the type of district that needs to offer transportation for our parents and we want to do that the best way we can, but it is a concern for us because the state is not funding it."

John Reiniche, Assistant Superintendent for Business Services, said the transportation fund is the only district fund operating at a deficit.

Fund Balance Policy Talk

Budget talks ultimately led to discussion of a fund balance policy, which the district does not have in place. A policy would put a limit on how low the district's fund balance could go. During a fiscal year the balance fluctuates depending on what projects are in play among other factors.

Board member Joseph LaMargo said he is in favor of exploring what level would make sense for the district.

Other members, including board vice president Ann Gentile and Tom Cunningham, said there are too many variables to make an accurate assessment and put such a policy in place.

Reiniche echoed their sentiments.

"Right now we're seeing these fluctations with pensions coming down, the state not paying us, the county being late," Reiniche said. "I just think this is an unstable economy."

However, he agreed to research the issue to bring back to the board.

"That's all I'm asking," LaMargo said. "We just need to figure out a good analysis of where we should be."

State Pension Reform Could Be 'Frightening'

In other business, the board discussed how employee pensions could affect the district's budget.

At this time, there isn't an effect, Reiniche said, but talk of legislation at the state level could change that.

Lawmakers are considering passing the responsibility to funding pensions to the local level -- which could ultimately result in an $8 million burden being passed on to taxpayers.

"This would be devastating to our community," Gentile said. "This is a frightening situation, not only for our community, but for our kids."

The legislators aren't likely to make any moves on the issue until after April 2013 elections, but Gentile said it's "never too early" for parents and community residents to start writing letters, faxing and calling in opposition.

Soustek said the issue goes back to the state's troubled financial management.

"Again, this is something that if the state was meeting its obligation all along, we wouldn't be in this situation right now," he said. "I hope that comes together somehow but I don't know what the answer is, either."