School District 65 is projecting a slight surplus for its fiscal year ending June 30, 2010, and then deficits of $1.7 million, $3.7 million, $5.4 million and $7.2 million over the next four years, or a cumulative total of about $18 million over the five-year period. The projections were prepared in collaboration with the District’s business office and PMA, the District’s financial advisers, said Kathy Zalewski, comptroller for the District.
Last September the District was projecting a cumulative deficit of $3.6 million over the same five-year period, or about $14.4 million less than its current projections. There are three key reasons for the difference:
· First, the consumer price index,
· Second, the School Board entered into a four-year collective bargaining agreement with the District Educators Council, the teachers union, last November which provides for salary increases higher than assumed in the September projections. The District is projecting that the cost of salaries – for all employees, including teachers – will be about $4.2 million higher over the five-year period than the earlier projections.
· Third, the District is projecting that employee benefits will be about $6.2 million higher over the five-year period than the earlier projections.
Superintendent Hardy Murphy said the projected deficits up through fiscal year ending
The current projections assume that the
Dr. Murphy said the administration would present strategies to address the projected deficits during the budgeting process this spring.