John P. Huston, TribLocal reporter
New Trier High School officials are negotiating a contract with teachers and staff as tough financial decisions loom on the horizon for a district where revenues are not keeping pace with expenses.
New Trier High School District 203′s 2010-11 budget is balanced, said Donald Goers, the district’s associate superintendent. Unless changes are made now, the budget shortfall could reach $500,000 next year, and more than $1 million the year after that.
As in any negotiation, the district is seeking a contract with teachers and staff that “keeps costs down” and takes the district’s financial situation into account, Goers said. Otherwise, he said, areas where the budget can be cut will have to be found.
Salaries and benefits make up 80 percent of the district’s operating expenses, Goers said.
“Our intent is not to dip into reserves,” he said.
The district won’t look to another referendum or a bond issue if revenues continue to lag behind expenses, either. A controversial referendum on a building project was soundly defeated earlier this year.
“Seven or eight” positions were cut last year, five due to attrition and the rest from lay-offs, Goers said.
“If we were to continue to lose revenues, we’d have to make more significant staffing cuts. We hope to avoid that,” he said.
That means asking teachers and faculty to accept a contract that favors the school’s situation. But officials say they have not asked teachers or staff to take a pay cut, or accept a salary freeze. James Burnside, New Trier High School Education Association president, declined comment.
The District 203 board approved its 2010-11 budget Aug. 23, which shows dangerous signs ahead. Revenues were down $2.5 million – or 2.8 percent – from last year. Expenses, however, are expected to increase by $500,000 this year.
The budget was balanced by cutting expenses across the board — although school programs have so far been spared. For the first time, the district also cut its contingency money – to the tune of $503,000.
Most of the district’s income – more than 90 percent – is from local property taxes, which are expected to bring in $400,000 less than last year. Local, state and federal funding sources are expected to provide less income than 2009-10.
Increasing other revenue streams is limited, Goers said.
“We just did a little bit with the fees, not much, and with some expected increase in food sales and tuitions, that’s it,” he said. “There really aren’t any other sources of income that we could tap.
All the district’s collective bargaining agreements will expire in the next year and a half, Goers pointed out. The first one to arrive at the negotiating table will be the faculty union, scheduled for the first of year.
“Those will all be driven by the current economic conditions,” he said.
