Supt. Gary Kelly on the challenges in Dist.300

Last week, the Du Quoin Evening Call published the 2015 Illinois State Board of Eduucation profile which indicates Du Quoin Community Unit Dist. 300 is on the financial warning list, was required to author and execute a deficit reduction plan and currently has a debt load of nearly $16 million.

That story conveyed the state's concerns for Dist. 300 finances. The end of last week, district Supt. Dr. Gary Kelly authored a response to the profile and story. This is his assessment of Dist. 300:

--John H. Croessman

1. ISBE Financial Profile

The District current financial profile score is 2.80 which is classified as under the category of Warning. The financial profile is on a scale of 1.00 to 4.00. Prior to the continued loss of state aid the past 3 years our district was under the highest level on the financial score which is Recognition. The financial profile examines your fund balance to revenue ratio, your expenditure to revenue ratio, days cash on hand, short-term borrowing and long-term debt percentage. Naturally our score has declined due to deficit spending and using funds we had in reserve due to the loss of revenue therefore a reduction of cash on hand at the end of the fiscal year. As of last year there were 553 districts within the Recognition category, 199 under the Review category, 70 within the Warning category, and 38 school districts on the Watch list.

2. District Budget

There is no secret the District's budget has been under strain the last 4 years. During the last 4 years the district has lost over $3.2 million in state aid and several thousand more in cuts to special education and transportation reimbursement. In regard to employee cuts, the emphasis and desire of the Board has been to make reductions without any employees's losing their jobs and to not cut any programs. Therefore, as employees have retired many positions have not been filled. In looking at the past few years including as we move into next year, there will have been a reduction of 12 teaching positions, 1 cook position, 1 custodial position, 1 administrator position, and 4 aide positions. These reductions took place as the result of not filling positions when employees retired, left their position, or through internal transfers which has resulted in a reduction of $1.2 million in employee costs during this time. As well, there have been no cuts in program for the past three years;supply budgets have been reduced by nearly $70,000; the district has a new health insurance provider which cut our cost this year by $240,000; the athletic departments are doing their own fundraising for supplies, equipment, and uniforms; we have absorbed several thousand dollars in costs with special education therefore reducing our assessment with our special education cooperative; we have cut 2 bus routes in the morning and 2 bus routes in the afternoon. During this time the District is also paying for programming related to 3 students placed in outside facilties at a high cost to the District. The faculty and staff understand the financial dilemma we are under, have taken on additional responsibilities and as many teachers have always done continue to provide for items for their students from their own pockets. The PTO, booster clubs, and Education Foundation are also providing resources that are a direct benefit to students. As we move forward to the coming year, our faculty and staff understand the finances of the district and will collectively bargain in good faith. Likewise, next year will undoubtedly be the year that certain programs will face cuts.

3. Long Term Debt Service

The long-term debt for the district is the result of bonding for the K-8 School, the new high school, and for the renovation of the west end of the high school not covered through the high school construction grant from the state. There is 3 more years left to pay on the K-8 School. The bonds for the local match for the new part of the high school is being paid through the local sales tax that was approved at the same time the referendum was approved to construct the high school. in actuality it does not count against your debt service ratio. As you are aware the local sales tax in an agreement with the city, was not enacted though until the district received its construction award from the state nearly 8 years after our initial application to the state. The renovation of the west end of the high school which occurred in 2 phases with the District first having to place a new roof on the west end of the facility and perform water proofing work in the same area. This work took place prior to the new high school being constructed. The second phase came with the renovation of the gym, auditorium, and band room areas. Part of the debt for the renovation phase will be paid through the county sales tax approved by the voters of the county. As well, the interest requirements for most of the renovation bonds are being paid for by the federal government. Therefore, the District is looking to pay a large part of the debt through the sales tax and through special bonding without passing it on to the property taxpayers. The actual issue is that this generation has paid for the construction of 2 school facilities in a short period of time. I believe the lack of support for new elementary facilities in the 1970's when the state would have paid for 68% of the costs has been a contributing factor. At this time the value of the District's facility assets is over $44 million.

4. City-School District Sales Tax Agreement

It was never a secret within one of the amended agreements with the city for the District to pay back the sales tax revenue that had been forwarded to the District to pay for the demolition of the Ward and Wheatley schools which were vacated in 1999. Those proceeds were originally collected by the city as a result of the original referendum approved in 2002. The city agreed to forward the funds to assist with the demolition of those schools. That piece of the agreement was shared in good faith by me with the new Mayor when he had requested the District provide funds for the city pool facility which was refused by the Board. He didn't find that clause, it was shared with him.

5. District Testing Scores

There is no doubt last year was a transition year for the state in moving to a new testing program. Overall, the state as whole, did not perform well at any level tested. In regard to our high school scores they were not good by any comparison. One test score does not determine the great work taking place in any school. As you may or may not be aware, the high school traditionally rates in the top 4 or 5 high schools in southern Illinois in a comparison of ACT scores, college readiness, and graduation rates. The faculty and staff at each of our schools have always responded to the challenge of school improvement, again they always respond! We have great kids, and many parents who care about the learning environment of the District. We always need to support the work of our faculty, staff and students, Many people feel the school district is an asset to the community and support our students at all times.

I hope this clarifies some of the issues shared in your recent article and gives complete information to our public. The district audit's have always been presented by our district auditor at a public meeting and are approved by the Board. The Board understands the current concern with our budget and continues to be respectful to our taxpayers. At our next Board meeting we will continue our discussion with budgetary planning for the next school year.