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Consultant: CHSD 218 in strong position but inflation and state cuts are key risks
Summary
A financial presentation to the Community High School District 218 board projected multi-year surpluses and room for major capital work, while flagging state funding volatility and inflation as primary risks.
Dr. Grossi, a district financial presenter, told the Community High School District 218 Board on May 15 that the districthas seen revenue growth exceed expenditure growth in recent years and is positioned to fund major capital projects while maintaining healthy reserves.
The presentation summarized eight years of finances and a five-year projection, showing cumulative operating surpluses of about $46 million and planned capital investment of roughly $78.5 million financed with $24.4 million in bonds and $54 million from fund balances. "Youwere able to increase fund balances by $12,000,000," Dr. Grossi said, noting the district invested about $37 million in capital in the historical period.
Why it matters: the board is moving forward with major facility projects while state-level funding and post-ESSER revenue changes create uncertainty. Dr. Grossi said the stateis projecting a multi-billion-dollar shortfall within a few years and cautioned that districts that built permanent costs into one-time federal relief could face pressure going forward.
Key points from the presentation: - Revenue growth has averaged 5.7% historically versus 3.6% expenditure growth, producing the cumulative surplus. - About 64% of CHSD 218 revenue comes from property taxes, which grow roughly with CPI. The consultant used a 2.4% CPI assumption for the base projection. - The district received a final ESSER payment this year of $5.2 million and has property-tax relief grants that improve its ongoing revenue base. - Projections assume salary growth averaging 4.1% and benefits growth of about 7% annually; overall expenditures were projected to grow 4.2% versus revenue growth of 2.2% over the next five years. - Under the base scenario the districtis projected to keep fund balances near $112 million by 6/30/2030 (about 238 days of reserves), above the State Boardof Education's 180-day benchmark.
Risks highlighted: - Lower CPI (real estate growth) or a drop in evidence-based state funding would reduce revenues. Dr. Grossi said a realistic worst-case scenario could push the district into deficits in later years, dropping below the 180-day target though still above the districtminimum target. - Labor and market pressures are driving up costs for bought services (transportation, food, security) and staffing, which may require future budget tradeoffs.
Recommendations given to the board included continuing to use the projection model when making major decisions, especially additional capital beyond current projects, and to monitor inflation and state funding closely.
Board members and administrators thanked Dr. Grossi for the presentation and reaffirmed plans to review any further capital phases against updated projections before committing additional funds.
