Lincoln Community High School receives ISBE Financial Recognition ranking, but will lose $58,000 in State funding this year

[May 19, 2015]  LINCOLN - Illinois school district finances continue to show the strain of operating with fewer funds from federal, state and local sources, according to an annual statewide review of financial data by the Illinois State Board of Education (ISBE). The number of school district’s earning ISBE’s top financial rating dropped again this year, while those district’s that are projected to deficit spend this school year increased to 64.2%.

Many of these districts have already made significant cuts; they have reduced staff, delayed building repairs and upgrades, and eliminated academic and co-curricular program with little financial relief in turn.

The 2015 Financial Profile is based upon FY 2014 data received from school districts and provides a snapshot in time that helps the ISBE gauge school districts’ financial health. The profile’s designation categories are:

Financial Recognition: 3.54 to 4.00. Districts in this category require little or no review.

Financial Review: 3.08 to 3.53. Districts in this category receive a limited review by ISBE, but they will be monitored for potential downward trends.

Early Warning: 2.62 to 3.07. Districts in this category are ISBE monitored and offered proactive technical assistance.

Financial Watch: 1.00 to 2.61. If a district receives this score, it is placed in this highest risk category.

Multiple years of financial hardship have left school districts struggling to trim already lean budgets without affecting regular classroom instruction. This struggle is beginning to force many districts to tap into their reserves or long-term borrow.

Due to the state’s current budget shortfall, the majority of the State Board of Education’s appropriations have been reduced an additional 2.25%, which means even fewer dollars going to local school districts. General State Aid has been pro-rated at 89%, with the latest adjustment lowering that amount to 87%. Transportation funding will also be lowered to only 71%, and the amount going to various special education services will see reductions of 2 to 3%. These changes will result in a loss of approximately $58,000 to Lincoln Community High School.

In conclusion, ISBE data ranks Lincoln Community High School for the fifth consecutive year a 3.90 out of 4.00, placing LCHS in the Financial Recognition category.

[Superintendent Robert Bagby, Lincoln Community High School District #404]