Kaneland board hears year-end shortfall, bond interest slightly below budget

The Kaneland Community Unit School District 302 Board of Education heard a year-end budget update and a brief bond-market note during its July 28 meeting at Harter Middle School. The treasurer reported the district's year-to-date revenue-to-expenditure position ended June 30 roughly $3.5 million in deficit, a smaller shortfall than an earlier estimate of $3.7–$4.0 million; the speaker said the number could still change during the upcoming audit. "I think revenue to expenditure for the year right now, we ended June 30 at negative, $3,500,000," the board member presenting the update said. The report noted the district subsequently received $76,000 in federal funds routed through the state for operations and maintenance that will improve the position somewhat. The presenter also said the district's operations and maintenance (O&M) fund balance appears in the current report as about $307,000 but is forecast to end the fiscal year with a negative balance of about $230,000; the presenter said he will bring recommendations at a future meeting to correct that. Board members discussed summer budget "creep" in which salary and benefit adjustments added roughly $120,000 to projections and operations-and-maintenance revisions reduced some line items. The district's director of buildings and grounds provided additional line-item reductions of about $45,000, the presenter said. Superintendent Dr. Rolling also answered a question about the district's recent bond sale, saying the interest rate came in slightly lower than budgeted: "I think it was 4.52 and it came in at 4.49." No additional action was taken on the budget at the meeting; the treasurer's report was approved as part of the consent agenda earlier in the session. Board officials said they will present more detailed budget recommendations and a plan to restore the O&M fund balance at upcoming committee and board meetings.