Community Consolidated School District 181 Board of Education members plan to spend $3.2 million in surplus funds to cover a projected deficit this coming school year.

School Board members voted Monday, Aug. 24, 6-1 to approve a preliminary budget for Fiscal Year 2009-10, expected to be ratified in September.

Board member Linda Rio Reichmann cast the lone no vote.

The projected deficit is the result of lower than expected revenues, said board President Marc Monyek.

“We will use fund balances from the operating funds to make up this year’s deficit, while at the same time continue to examine ways to increase revenue and manage our costs, yet ensure that we provide the necessary valuable class room experience to our students,” Monyek said.

Administrators and the School Board will discuss the district’s long-term finances in September as part of the board’s “values discussion,” he added.

By that time, district staff is expected to have developed a list of potential cost reductions that could be implemented during the next year, said Troy Whalen, assistant superintendent for business.

“We also will examine possible revenue enhancements, such as grant opportunities, but there isn’t a lot out there with the state’s budget cutbacks,” Whalen said.

Officials said the district is fortunate to have significant fund balances at its disposal to offset the projected budget deficit.

“We are in a very good fund balance position, and the district is rated very highly by the state of Illinois,” Monyek said. “Our position is viewed positively by those outside the district.”

In January, district finance officials projected the overall fund balance would be $19.8 million at the end of Fiscal Year 2008-09. The overall fund balances could be depleted by 2014 if revenues from property taxes continued to drop, according to the district.

“But at the end of Fiscal Year 2008-09, our fund balance was $20.7 million, nearly $1 million more than originally anticipated,” Whalen said. “As a district, we are very fortunate to have built up a large fund balance so that we can weather the storm.”

Whalen said his office will present a five-year financial projection to the School Board in October that will include future fund balance estimates.

“We will be able to pretty much show where they will be at the end of next year, but after that, it gets a little dicey trying to be accurate because it becomes a moving target for years two through five of a five-year plan,” Whalen said.

The preliminary budget is available for public review at the district offices, 101 Executive Drive, Suite 100, Westmont.