$545,085 TO SCHOOL BUDGET
Family budgeting is tough. Harder than even a meteorologist forecasting the weather. It is an art not a science. No matter how well thought out the numbers look, Murphy's Law always says to EXPECT THE UNEXPECTED.
Whether that be a child needing braces, the car needing brakes, or a storm causing damage to a roof, it's often inevitable that the income brought in by mom and dad might not stretch far enough to cover these unanticipated expenses.
Occasionally family fortunes take a turn for the better should mom or dad exceed job quotas or expectations and qualify for a big year-end bonus. Unfortunately, you can never count on such an occurrence, let alone expect it to happen annually.
Most Catholic schools utilize three traditional sources of revenue when putting together their operational budget. The first is parish subsidy or as it is also referred to, parish investment. This year our parish has generously provided $539,918 to the school, which equates to more than $10,000 per week, and a number that has been fairly consistent for the past two decades.
Next there is fundraising. The school's biggest fundraiser is the Auction from which the Home and School committed $110,000 to the current operational budget. The Golf Outing provides another $80,945 and the Annual Fund Drive is budgeted for $60,000.
Finally there is tuition which is often referred to as the plug number describing what is left after subtracting subsidy and fundraising revenues from approved expenses.
Actually there is one more revenue source for schools that have an Advancement program and that would be earnings from their endowments. Saints Peter and Paul School has three separate endowments: Capital Improvement for projects that are above what can be covered in the school budget; Tuition Assistance for families dealing with a situation that prevents them from paying all of their tuition; and Teachers for supplementing the salaries determined by the Diocese of Joliet.
Diocesan policy requires our money to be invested by the Diocese of Joliet. It also regulates that schools with endowments be allowed to only withdraw a maximum of 4% of earnings annually. The Advancement Board has been adhering to this standard every year since 2001.
This year nearly half a million dollars ($494,631) was applied to the current operational budget from endowment earnings.
Because the market performed so well last year, the news is even better for the 2018-19 term. At their March meeting, the Advancement Board authorized $545,084 going to the school's budget for next year. Specifically $315,415 is coming from the Frank Glowaty Teachers' Endowment, $96,465 from the Tuition Assistance Endowment, and $113,205 from the Capital Improvement Endowment.
The latter number will help the school implement its plan to purchase chrome books for students in grades 3-8 as well as make necessary improvements and upgrades to bathrooms in both buildings.
Saints Peter and Paul School started building endowments back in 1989. The more our endowments grow, the more money there is for the school. To date, the endowments have generated over $5 million in earnings that have gone to the school and helped mitigate tuition increases. Unlike bonuses from work, the endowments will last into perpetuity and is a source of revenue school leaders can count on annually.
All monies donated to the Annual Fund Drive that exceed the $60,000 which is calculated for the school budget is applied to one of our endowments according to the wishes of the donor.
Please support all major school fundraisers, including the Annual Fund Drive, with your tax-deductible gift.
Your gift will help ensure that our quality teaching staff will remain intact.