1. Ridgeland School District 122 2008 Referendum

2. District 122 in Oak Lawn

3. District 122 Attendance Area

4. The Effects of the Failed Referendum in April 2007 Increased class sizes to 35-38 Eliminated 9 Elementary Teachers Eliminated Band Eliminated Music Eliminated Art Eliminated LRC Directors & Assistants

5. The Effects of the Failed Referendum in April 2007 Extra-curricular activities at Simmons are now fee-based Staff Development funding is no longer available Reduction in Custodial Salaries Administrative pay freezes Increase student fees

6. Our Current Situation From 2002-2006, the average operating deficit was $1.25 million/yr For the 2005-2006 school year our operation deficit was just over $2 million For the 2006-2007 school year an operating surplus of $1.3 million due to a bond sale For the 2007-2008 school year our operation deficit is projected at $650,000

7. Our Current Situation The state requires all school districts to… Have a balanced budget within 3 years Have an annual deficit reduction plan May be placed on the state financial watch list if the district budget is not balanced

8. Our Current Situation: Reduced Revenue Tax Cap Legislation (1994) Based on Consumer Price Index (CPI) Has capped revenue increases to an average of only 2.5% per year School Districts in tax-capped counties exhaust cash reserves and must run a referendum campaign every 7-10 yrs.

9. Our Current Situation: Increased Expenses Ridgeland School District 122 expenses have outpaced the Consumer Price Index every year since the tax cap legislation in 1994 Increase in contractual obligations Health insurance - Nationwide, health benefit costs increased by over 80% since 2001

10. Our Current Situation: Increased Expenses  State mandated programs English Language Learners (ELL) Fee Waivers Special Education - 1/3 of our current budget expense  Transportation costs have increased 100% since 2000

11. Our Current Situation: Increased Expenses Special Education tuition has increased 143% since 2000 Special Education state reimbursements were increased for first time in 22 years From $8,000 per teacher to $9,000 From $2,800 for support staff to $3,500

12. Our Current Situation: Increased Expenses Education Fund expenses increased 7.8% per year. Overall Revenue increased 5% per year State and Federal grants Tax revenue

13. Our Current Situation: Increased Expenses Between 2001-2006, The previous teacher contract allowed for an average increase of 6% per year The current contract averages a 3.75% increase per year for three years

14. District Revenue Sources Local 76% Taxes, Interest, Fees, Lunch Sales State 18% General State Aid, Special Education, Transportation Federal 6% IDEA, NSLP, Title Grants

15. District Expenditures Salaries 55% Benefits 14% Purchased Services 26% Supplies 5%

16. Where do the salary costs go? Teachers 76% Support Staff 16% Principals 4% Administration 4%

17. Our Options Continue to borrow annually and pay back with interest at taxpayers expense. Make additional budget cuts Lease one building to a third party Pass a referendum to increase revenue

18. Option 1 - Borrow Annually Sell Working Cash Bonds Sales in 2006 & 2007 Tax Anticipation Warrants Used to make payroll after all reserves have been spent The above two items are the same as using charge cards and must be paid back with interest Both items will downgrade credit rating Continuing to borrow will not balance the budget

19. Option 2 – Additional Budget Cuts Eliminate Sports/Extra-Curricular activities Grade Level Centers for 2008-2009 K-2 at Lieb School 3 at Kolb School 4-5 & Pre-School at Harnew School 6-8 at Simmons Middle School Move administration offices to Kolb School Maintenance staff remain at Olcese/Johnson Lease Columbus Manor School or Kolb School to another third party

20. Building vs. Educational Fund Referendum Building Fund Referenda can only be used for the improvement of facilities Last building referendum passed in 2000, language changes in 2002 & 2004 Resulted in new and renovated schools throughout the district Educational Fund Referenda can only be used for daily operations Last educational fund referendum passed in 1997

21. 70 cents/$100 Equalized Assessed Valuation (EAV) A home worth $200,000 would see a $345 increase Assessments lower than actual home value Effects of a Successful Referendum for the Property Owner

22. Effects of a Successful Referendum: For the Students of District 122 Reinstate programs for the 2008-2009 school year Neighborhood schools will remain open Class sizes will be reduced Budget will be balanced for 7 years

23. It’s About Kids!