Financial Projections Show Continued Deficit Spending For Next Five Years

A five-year financial forecast provided by the Citizens Finance Advisory Committee (CFAC) to the Board of Education on January 8 demonstrates a continued financial deficit for Glenview District 34 over the next five years.
 
According to the projections, the district may experience a $1.9 million deficit in Fiscal Year 2019, $2.3 million deficit in Fiscal Year 2020, $2.6 million in Fiscal Year 2021, and $2.0 million deficit in 2022.
 
When looking at last year’s projections, the deficit was closer to $1 million in Fiscal Years 2018-2020 and closer to $2 million in Fiscal Years 2021-2022. CFAC Committee member Richard Kreutzfeldt attributed the change in Fiscal Year 2018 to several factors, the most notable of which include increases in special education tuition, transportation costs and staffing needs.
 
“By providing the Board with a five-year financial outlook, the district can proactively introduce changes overtime to improve its financial trajectory. I want to emphasize that the forecast is a projection – not a prediction – of what is going to happen. The work of CFAC is to bring awareness to the potential outcomes so the Board can evaluate how best to address these issues,” said Kreutzfeldt.

CFAC’s presentation did include an alternative forecast that contains a 2-year property tax freeze. This would mean a reduction in revenues of $1.5 million in Fiscal Year 2020 and a $2.5 million reduction in revenues for Fiscal Year 2021. Given that the potential of a property tax freeze is currently unknown, CFAC did not recommend the district take the alternative scenario into account at this time.
 
“The five-year projections provided by CFAC are critical to maintaining our financial health as a district,” said Assistant Superintendent of Business Services Eric Miller. “These projections allow the district to pause, reflect and determine any potential next steps we need to take that are in the best interest of all stakeholders.”  

CFAC is comprised of staff members and residents with financial backgrounds. It was established in 2001 with the purpose of providing the Board of Education with financial recommendations and reports. The group has researched and reported on district spending and revenues since that time, as well as performed benchmarking analysis for various district metrics.

The committee has been meeting since October to review the current year budget and consider assumptions used to generate the five-year projections.