Dr. Lynda C. AndreEDWARDSVILLE - Dr. Lynda C. Andre, Edwardsville School District 7 superintendent, provided an update of state funding at the Monday board meeting.

This was Dr. Andre's update to the board and those in attendance:

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As of January 23, 2017, the State of Illinois owes District 7 approximately $3 million for both the 2015-16 and 2016-17 school years and has yet to issue any mandated categorical (Special Education and Transportation) or grant program (Early Childhood) payments due for the 2016-2017 school year. The state’s ability to pay outstanding and due mandated categorical and grant payments for the remainder of this school year is increasingly in doubt.

Examples of amounts currently due from the State are as follows:

Special Education - $1,300,933.60

Transportation - $1,087,677.73

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Early Childhood - $ 264,721.00

The Illinois State Board of Education has indicated to school districts that, due to the current backlog of state bills totaling over $11.2 billion as of Friday, January 20, districts should expect to receive only two of the four mandated quarterly categorical payments before June 30, 2017.

As a result, the District anticipates having to increase its expected borrowing (using tax anticipation warrants) from $2 million to more than $5 million to pay bills and salaries for the remainder of the 2016-17 school year. The District expects to execute the tax anticipation warrants as early as April 2017.

Outlook for 2017-2018
The outlook for the 2017-18 school year continues to look bleak for District 7 with the District facing an estimated $3.5 million budget deficit in the Education Fund, assuming no further deterioration in funding from the State.

For these many reasons, the Board of Education made the decision to again place a $0.55 Education Fund tax rate increase on the ballot at the Consolidated Election to be held on April 4, 2017.

The Board continues to review all areas of operations for expenditure reductions. The Board is also reviewing grant programs that are funded by the State to determine if the District can continue to absorb the costs of these programs while the State fails to make promised grant payments.

At the February 13, 2017, Finance Committee and Board meetings, the Board of Education will begin discussion of operating and program expenditures that will be reduced or eliminated in 2016-17 in an effort to narrow the expected Education Fund budget deficit should the April 4, 2017, Education Fund referendum fail.