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Tuesday, February 20, 2018

Financial Forecast

Fiscal Years 2018-2023Policy 4:10

Overview

• Financial Forecast• Operating & Non-Operating Funds

• State Funding Formula• Evidence Based Funding

• Assumptions• EAV, Property Taxes, CPI, Proration,

Pensions

• Future Activities

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Operating Funds Forecast

Operating Funds - Projection Analysis

Budget

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

REVENUE

Local 272,313,889 281,322,019 287,878,578 295,476,739 303,186,015 311,009,414

State 39,519,454 49,186,748 49,186,748 49,186,748 49,186,748 49,186,748

Federal 9,920,737 9,920,737 9,920,737 9,920,737 9,920,737 9,920,737

TOTAL REVENUE 321,754,080 340,429,504 346,986,063 354,584,224 362,293,500 370,116,899

EXPENDITURES

Salaries & benefits 246,725,925 256,840,535 265,329,589 273,715,590 281,968,595 290,502,348

Other 78,415,835 82,514,880 82,177,291 82,762,815 83,360,049 83,969,228

TOTAL EXPENDITURES 325,141,760 339,355,415 347,506,880 356,478,405 365,328,644 374,471,576

EXCESS / DEFICIT (3,387,680) 1,074,089 (520,817) (1,894,181) (3,035,144) (4,354,677)

Other Financing Sources (Uses) (235,600) (136,000) (33,900) - - -

EXCESS / DEFICIT & OTHER FINANCING (3,623,280) 938,089 (554,717) (1,894,181) (3,035,144) (4,354,677)

Reductions

Net excess (deficit) after reductions (3,623,280) 938,089 (554,717) (1,894,181) (3,035,144) (4,354,677)

Beginning Fund Balance 105,294,018 101,670,738 102,608,827 102,054,110 100,159,929 97,124,785

Ending Fund Balance 101,670,738 102,608,827 102,054,110 100,159,929 97,124,785 92,770,108

Fund Balance as % of Revenues 31.60% 30.14% 29.41% 28.25% 26.81% 25.07%

REVENUE / EXPENDITURE PROJECTIONS

Forecast

Non-Operating Forecast

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Bond and Capital - Projection Analysis

Budget

FY 2018 FY 2019 FY 2020 FY 2021

Revenue:

Local 28,026,064 28,330,577 28,634,017 28,704,502

State - - - -

Federal - - - -

Total 28,026,064 28,330,577 28,634,017 28,704,502

Expenditures:

Salaries & Benefits - - - -

Other 29,197,352 29,088,804 29,306,510 29,339,807

Total 29,197,352 29,088,804 29,306,510 29,339,807

Excess/(Deficit) (1,171,288) (758,227) (672,493) (635,305)

Other financing sources 235,600 136,000 33,900 - *Other financing uses - - - -

235,600 136,000 33,900

Change in Fund Balance (935,688) (622,227) (638,593) (635,305)

Beginning Fund Balance 16,803,476 15,867,788 15,245,561 14,606,968

Ending Fund Balance 15,867,788 15,245,561 14,606,968 13,971,663 Fund Balance as % of Revenues 56.6% 53.8% 51.0% 48.7%

* does not include potential Debt Certificate redemption

REVENUE / EXPENDITURE PROJECTIONS

Forecast

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Forecast Highlights

Forecast Pressures:

• Evidence Based Funding has not been implemented

• Continued uncertain State funding

• Increased health insurance costs

• Increased custodial maintenance costs

• Increased transportation costs• Possible pension cost shift• Possible property tax freeze

Forecast Positives:

• New State funding system• Increased investment revenue• Improved economy• Continued property

developments

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Forecast Highlights-EBF

Revenue - 3 Sources FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

1) Local CPI Increase CPI Increase CPI Increase CPI Increase CPI Increase CPI Increase

2) State (New Funding Formula)

Base Funding Minimum 37,447,994 37,447,994 37,447,994 37,447,994 37,447,994 37,447,994

Categorical Payments:

Special Ed. Private Facility 1,741,087 1,741,087 1,741,087 1,741,087 1,741,087 1,741,087

Orphanage 3,089 3,089 3,089 3,089 3,089 3,089

Drivers Education 150,000 150,000 150,000 150,000 150,000 150,000

Early Childhood Block Grant 232,800 232,800 232,800 232,800 232,800 232,800

Transportation 7,911,860 7,911,860 7,911,860 7,911,860 7,911,860 7,911,860

Tier 2 Funding 971,594 971,594 971,594 971,594 971,594 971,594

Total State 48,458,424 48,458,424 48,458,424 48,458,424 48,458,424 48,458,424

3) Federal No Change No Change No Change No Change No Change No Change

The State HAS NOT finalized tier funding so we HAVE NOT received any payments to date

We HAVE NOT received any of our Categorical Payments which should come quarterly - State owes us $5.8M to date

We HAVE been receiving our Base Funding Minimum in biweekly payments

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Evidence Based Funding- Elements

Per Student

12 Gifted

13 Professional Development

14 Instructional Materials

15 Assessment

16 Computer Technology

17 Student Activities

Central Services

18 Maintenance and Oper

19 Central Office

20 Employee Benefits

Diverse Learners

21a Intervention (Poverty)

21b Intervention (EL)

22a Pupil Support (Poverty)

22b Pupil Support (EL)

23a Extended Day (Poverty)

23b Extended Day (EL)

24a Summer Sch (Poverty)

24b Summer Sch (/EL)

25 English Learners (EL)

26a Special Ed Teachers

26b Psychologist

26c Special Ed Instructional Asst

Core FTE

1a Core Teachers K-3 (Low Income)

1b Core Teachers K-3

1c Core Teachers 4-8 (Low Income)

1d Core Teachers 4-8

2a Core Teachers 9-12 (Low Income)

2b Core Teachers 9-12

3 Specialist Teachers

4 Instructional Facilitators

5 Core Intervention Teachers

6 Substitutes

7a Core Guidance

7b Nurse

8 Supervisory Aides

9a Librarian

9b Library Aide/Media Tech

10a Principal

10b Asst Principal

11 School Site Staff

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Evidence Based Funding - Percent of Adequate

0%

20%

40%

60%

80%

100%

120%

140%

Indian Prairie Wheaton Batavia Geneva St. Charles Elmhurst Naperville Barrington

Percent Adequate

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Evidence Based Funding – Funding Gap

$(60,000,000)

$(40,000,000)

$(20,000,000)

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

Indian Prairie Wheaton Batavia Geneva St. Charles Elmhurst Barrington Naperville

Funding Gap

Assumptions - EAV

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Assumptions - CPI

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Assumptions – Tax Rate

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Future Activities

• Monitor FY18 Budgeted Expenditures and Revenues

• State Budget determined by the end of May

• Continue to monitor assumptions

• Continued Board of Education updates

• Forecast transition to Tentative Budget early spring