A $2.8 million shortfall in Lemont-Bromberek Community School District 113A’s budget could lead to cutting non-core educational classes such as art and music.

Based on stagnant tax revenues and increased operating costs, officials said the district could face another year in the red that would bring its deficit to $2.8 million after the upcoming 2009-10 school year. Last year the district spent $1.5 million more than its $24 million budget. Officials anticipate revenues to increase by about 2 percent and expenditures by about 5 percent for 2009-10.

“District 113A is experiencing the same financial outlook that many other districts and public entities are faced with now and well into the future,” said Superintendent Tim Ricker.

While a financial shortfall was expected, no deficit reduction plan has been put in place, said board member Kevin Doherty, Finance Committee chair.

“Many Illinois school districts have already begun to operate in deficit mode,” he said. “They’ve had to make aggressive cuts in staff and services. With a plan in place, we may be able to avoid drastic changes and continue to offer the top-notch education we have been known for.”

However, Doherty said significant changes to the programs offered by the district may be required.

The Finance Committee is comprised of community members, parents, representatives from union groups employed by District 113A and members of the School Board. Committee members met recently to discuss spending and revenue patterns during the last few years and continue their work to determine the future financial status of the district.

No recommendations will be made for implementation until the review has been thoroughly conducted, Doherty said.

He added most of the district’s expenses are fixed, with 76 percent of the costs going toward salaries and benefits, which are difficult to reduce. The remaining 24 percent represents costs for food service, utilities, books and supplies, which leaves school officials little room to maneuver.

“Increasing class sizes will only take us part of the way to making up our deficit,” Doherty said. “I’m not sure where we will find the remaining cost savings, but our committee continues to review other possibilities.”

He said any changes in salaries, benefits and programs will impact the students.

The district has been running an operating deficit for the past seven years.

“Each year the board has looked to address the problem with some strategies,” Ricker said. “But with the increase in expenditures for salaries, benefits, textbooks, programs, supplies and the cost of educating our children on the rise it is now more imminent that the district will have to make some decisions on trimming our budget to address fund balances.”

Addressing the deficit was an issue of the School Board’s community dialog held last year. The community-based District Dialogue committee, along with more than 275 community members, created recommendations and guidelines that were presented to the School Board to address the operating deficit and the district’s future.

Ricker said the district needs to look at decreased expenditures, increased revenue or both to address the issue over time.

“To do both quickly would be ill-advised,” he said.

Ricker said it could take several years to completely address all the issues surrounding deficit spending patterns in the district. In the meantime, some cuts are needed and some budget trimming will be implemented for the 2010 budget.

“Continued work with the public will help to decide what is mandatory, what is needed and what could be trimmed with the savings reallocated to the deficit fund areas over the long term,” Ricker said. “Everyone agrees that we want a quality education for our children to continue. Just how we do that using our current funding levels will be the challenge.”

Lemont resident and committee member Al Malley said no option is off the table.

“If this were a for-profit business, the choices would be easy,” he said. “Unfortunately, we must balance contractual obligations, state and federal mandates as well as a semblance of a quality education against stagnant revenues and rising expenditures.

“The next few months will be crucial to prevent a downward spiral that will take years to recover from.”