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Okat Park and River Forest High School | District 200

Budget Basics

 

The Illinois School Code requires school districts to adopt and file with the State Board of Education a budget on an annual basis. District 200’s budget preparation begins in January and culminates with adoption by the Board of Education by September 30th. Prior to adoption, a tentative form of the budget is made available for public inspection for at least 30 days, and a public hearing is held so members of the public can provide comments on the budget to the Board of Education.  

 

Revenue: Where does the district’s money come from?
  •  Local property taxes (75-80% of budget): The largest source of revenue for the district is derived from an annual tax levy approved by the Board of Education,  typically in December. Revenue from the tax levy is received in two installments during the following calendar year.
  • Other local sources (8-12% of budget): These revenues consist of other tax collections, earnings on investments, student fees, and charges for services such as food service sales. The district controls the amounts charged for student fees and food sales whereas other taxes and interest earnings are driven more by the economy.
  • State revenue (7-10% of budget): Revenue from the State is largely determined by the district’s Evidence-Based Funding allocation. Additional revenue is distributed to the district on a reimbursement basis for costs related to State-mandated programs such as special education, transportation, and driver education.
  •  Federal revenue (about 2% of budget): The district is awarded several federal grants on an annual basis to reimburse costs associated with special education, Medicaid services, and National School Lunch programs. Occasionally, additional funding becomes available for other federal initiatives such as economic stimulus efforts or pandemic relief.
Expenditures: Where does the district’s money go?
  • Salaries and Employee Benefits: Education is a labor-intensive industry, so these costs typically account for more than half of the district’s budget. The salaries and benefits for most employees are determined through collective bargaining agreements between the district and the employee’s union group. Employee benefits include payments by the district for employees’ insurance coverages and retirement benefits.
  •  Purchased Services: These costs are for services rendered by individuals who are not on the district’s payroll. Examples include professional development services, consultants, legal fees, transportation services, and special education support services.
  • Supplies and Materials: Expenditures for consumable items like textbooks, instructional materials, custodial/maintenance supplies, and utilities are charged to this budget category.
  • Capital Outlay: This category accounts for the acquisition or improvement of the district’s fixed assets. Costs in this budget category can vary significantly from year to year depending on the scope of building maintenance and construction projects occurring.
  •  Non-capital Equipment: Purchases of items that cost less than the district’s capitalization threshold but more than $500 are budgeted here. Technology equipment is often the biggest expense in this category.
  •  Other: Despite being a catch-all category, this budget area can still account for some significant expenditures such as tuition payments for students attending other educational facilities and debt service payments.