From AP - News Headlines -

Champaign Unit 4 School Board Passes Deficit Budget

The Champaign School Board passed a deficit budget Tuesday night for the current school year. And while Unit Four officials say their cash reserves are enough to cover the loss, they warn of more serious deficits next year, unless some difficult cuts are made.

The 153 million dollar budget includes a nearly 3-point-9 million dollar deficit. Unit Four Chief Financial Officer Gene Logas says the district was the victim of unexpected cuts in state funding, changing rules for the use of federal stimulus funds, and tax revenues dampened by the recession.

"This is the most difficult budget I've had to put together in 22 years of public service", said Logas.

Still, Logas says the budget is not a total disaster. He says Unit 4 is avoiding large scale cuts, and should end the fiscal year with over 16 million dollars in its fund balance. Logas says that's still a healthy level for Unit 4. But he warns says the school district's finances will be even tighter next year, and planning must start soon for more cuts and the possible issuing of more working cash bonds.

The 153 million dollar budget includes a nearly 3-point-9 million dollar deficit. Unit Four Chief Financial Officer Gene Logas says the district was the victim of unexpected cuts in state funding, changing rules for the use of federal stimulus funds, and tax revenues dampened by the recession. The Champaign School Board is expected to start studying those options at its October 26th meeting.

The Unit 4 school board also approved a 3 percent raise for its administrative staff --- not including Superintendent Arthur Culver. Assistant Superintendent Beth Shepperd says the increase is lower than usual, because of the tight budget, and may have to go even lower next year.

Categories: Education