District 113A Approves Updated Financial Plan for State Board

An updated version of financial plan will be used in the coming weeks to update state officials on the district's financial progress and outlook for the future.

During a special meeting Wednesday night, board members voted 4-3 to approve an amended financial plan to send to the Illinois State Board of Education. District 113A Board President Mike Aurelio and Board Members Karen Siston and Al Malley cast the dissenting votes.

According to District 113A Superintendent Tim Ricker, an updated version of the plan was requested by Deb Vespa, ISBE division administrator for school business services. The plan includes projections for fiscal years 2012, 2013 and 2014 — all of which will be used to update legislators and the state board on District 113A's progress and its outlook for the future.

District 113A has been following a state-approved financial plan since being certified in financial difficulty in December 2009. The plan includes information on enrollment, staffing plans, borrowing, cash flow analysis, and budget expenditures and reductions.

The plan outlines four objectives for the district: maintain balanced budgets for fiscal years 2012, 2013, 2014 and beyond; implement and follow financial policies for fund balances and cash-on-hand requirements; build fund balances over the next three years; and eliminate short-term borrowing for cash flow purposes.

Board members did not discuss their votes during open session. Following the meeting, however, Aurelio and Malley criticized the plan and said they have never agreed with its contents.

"It's a horrible plan," Malley said. "It doesn't take into account the best interest of the students as much as I would like it to."

Aurelio said their votes were consistent with past discussions of the plan.

This summer, the district was required to submit an amended version of the financial plan to the state in order to complete the sale of $5 million in tax anticipation warrants to .

When the plan came before the board during their June 28 meeting, Aurelio and Malley raised concerns over the surplus amounts projected each year, which they claim are too large. They inquired about decreasing the surplus and using current funds to hire teachers or support staff to address the large classroom sizes in the district's three schools.

During the meeting, Ricker and then treasurer Jay Tovian cautioned the board about spending as the district continues to build its reserves. 

"Just because we have a fund surplus does not mean we can go out and spend money," Tovian said. "We're still borrowing. When we get rid of the borrowing, then we can go out and look at that."

The amended plan was ultimately approved by a 4-3 vote, with Malley, Aurelio and Siston casting the dissenting votes. The vote was the same when the board approved another amended plan in August.

Aurelio reiterated his concerns after the board meeting Wednesday.

"The surplus is far too large," he said. "I think [the plan] is too punitive to current students and faculty."