Drop in State Revenues Problem for Unit 40

In approving a budget for the new fiscal year Monday night, Effingham Unit 40 school officials acknowledge more outgo than income, but say they are operating in light of dwindling state revenues.

Assistant Superintendent Rem Woodruff said the district's General State Aid reimbursement has seen a steady decline from its peak of just over $7.5 million in 2010 to just under $5 million projected for 2016.

Add to the decrease in State Aid the State's practice of pro-rating promised revenes. In recent years, the State has promised Unit 40 and other Illinois school districts certain funding amounts, but have then pro-rated those amounts to as low as 84% of what the Districts should receive.

Woodruff noted that the District has worked in recent years to cut expenses. As an example, he shared a graph that while Education Fund spending in the District was just under $20 million in 2008, that expenditure has dropped to just over $17 million in 2015. Woodruff said employee salaries make up 80%-85% of the Ed Fund budget, so there's not a lot of wiggle room.

General State Aid provides almost one-quarter of the District's total income. Local property taxes supply 54% of the income pie, other local funding another eight percent, other state funding sources eight percent, and federal funding about seven percent.