Dear District 65 Community -

When our students come to school, their parents/caregivers deserve to know they are safe, will engage in joyful learning, and that they will grow as a human and a scholar. This will all be possible because our staff feel supported, have the resources they need, and know that they are deeply valued for the work they lead.

As superintendent, this is my vision for our school district. While at the moment the road ahead may feel uncertain, I want everyone to know that we are deeply and unequivocally committed to stabilizing the district’s financial health once and for all. I am an educator at heart and always will be. I care deeply about preserving the investments that make our schools so special and I know our team and school board feels the same. 

Over the past year, we have been very transparent about our financial outlook. I don’t know any other way, even when the news is difficult. On Monday our school board approved a deficit budget for this fiscal year. I encourage you to review this executive summary, review Monday’s budget presentation, and watch the meeting recording.

• Our district is facing a budget deficit of approximately $13.2 million for the fiscal year ending June 30, 2025. This deficit includes all funds except the capital projects fund.
• Our fund balance will drop below the required 90 days of reserves based on school board policy (72 days). As a result, it will be necessary to make reductions to balance our budget prior to the start of the next fiscal year. 
• While annual expenditure growth over the past three years averaged 9.74% (excluding the capital fund), our recommended budget reductions approved by the board last spring slows expenditure growth to 1.13%. This was a critical step in the right direction.

District 65 has had a long standing structural deficit (which means expenses are growing faster than our revenues). Our School Board along with prior administrations have taken steps to offset by making budget reductions over the years and have gathered data that will be valuable in informing our planning efforts. This includes development of a Master Facility Plan, Demographer Study, Curriculum Audit, and community input through the first two phases of student assignment planning. 

Additionally, the following factors have had an impact on the district’s financial outlook:

• Staffing levels have not matched declining student enrollment. This includes central office administrative staff and school-based positions. 
• Federal grant funding used to support various programs and services designed to support students post-pandemic have expired.
• Decreases in revenue sources such as Corporate Personal Property Replacement Taxes ($1.5 million) and increases in expenses such as health insurance costs ($1 million) have offset other sources of revenue growth.
• Building the new Foster School was previously presented to be cost neutral. 
• Our financial advisor’s opinion that the financial condition of the district was understated and financial actions were not aligned to best practice. (See the steps already being taken to build financial systems, structures, and processes)

On Monday, our financial advisor, Dr. Robert Grossi, stressed the need for bold, immediate action to balance our budget and avoid fiscal insolvency. We will not let this happen on our watch and will present a more detailed deficit reduction plan in January 2025 focused on the following components: 

1. Reduce staffing levels. Focus on efficiencies and return on investment of programs and services.
2. Recommended scope and timeline to better match district footprint to student enrollment levels. Complete staffing and operational efficiencies cannot be achieved without consolidation of schools.
3. Plan to identify resources to address major capital needs. Prioritize developing a funding plan for capital needs based on potential school consolidation plan.
4. Plan to deliver high quality individualized education services in a more cost-effective manner. Engage in a special education audit to review staffing, scheduling, programming and services, transportation, and funding sources.
5. Plan to deliver transportation services in a more cost-effective manner as supported by data. Consider modifying school start and end times, reducing discretionary bus routes, and other opportunities for savings.

There is no way to reduce our budget by this magnitude without having to make really difficult decisions. It is our intent to engage our staff and community on key aspects of our planning and are considering the need for an outside consultant to bring expertise and objectivity to critically important work in a very short period of time (why a consultant?).

I know this news is difficult and the uncertainty it brings will require patience, open communication, and elevating our “Big Five” core values. This being said, I am confident that we can provide high quality services for the children and families of this community within our allocated budget. Please stay tuned for more information. 

Thank you for your continued partnership and support.