1. Palestine School Board Informational Meeting 1-17-2013

2.  The Palestine School District appreciates everyone for being here tonight to discuss the outlook for the Palestine School District.  The district continues to believe that the school and community are joined together in educating the students of the Palestine School District. Palestine School District

3.  1) The Palestine School District operates from three main sources of revenue:  a.Local Property Taxes/Other Local Funding  b.State Funding (General State Aid & Category Funding)  c.Federal Funding (Title I & Title II) Ten Funding Facts #1

4.  2)Percent of Revenues that support the district:  a.Local Property Taxes-26%  b.State Funding-67% (59% G.S.A)  c.Federal Funding-7% Ten Funding Facts #2

5.  3) The Palestine School District has lost over one million dollars in state and federal revenues from 2008 to the present date. Ten Funding Facts #3

6. Percent's of Spending in Education

7.  4)The Palestine School District lost $306,227.68 in General State Aid (G.S.A.) from the 2011-2012 school year to the current school year. Ten Funding Facts #4

8.  5)The state is also holding funding in other areas of the district. Regular, Vocational, and Special Education Transportation have received only one state payment this year (1-8-2013). The state currently owes the district $128,233.89 in transportation money. Ten Funding Facts #5

9.  6)Due to the state’s current financial constraints, the Illinois Board of Education believes that the state will continue to reduce money until the pension crisis is solved. The district estimates that we could lose up to $100,000 in General State Aid next year if the state prorates funding. Ten Funding Facts #6

10.  7)The Palestine School District conducted a four-year projection of the district’s finances. With the decline of state funds, the district projects to be in debt by the end of the 2012-2013 school year. Ten Funding Facts #7

11.  8)In July of 2012, the Palestine School Board took action to borrow $485,000 from the First Robinson Savings Bank. The money from this loan was never used. The district held bills and managed to make payroll. Ten Funding Facts #8

12.  9)The district has worked to limit spending. The district has cut transportation spending and tightened budgets in all areas of the district. Although these steps have been taken, the district will need to borrow money in the spring or maybe sooner to finish the school year. Ten Funding Facts #9

13.  10)The projections show that the district will be $820,861 in debt for this year. Ten Funding Facts #10

14.  The Palestine School District will need to make changes to help combat the lack of funding from the state of Illinois.  Projections show the district in debt:  2013-2014 School Year-$1,073,002  2014-2015 School Year-$1,429,956  2015-2016 School Year-$1,840,066 Projections

15.  The ultimate goal is to balance the budget in the 2013- 2014 school year.  How?  This means that the district must cut spending to move closer towards a balanced budget.  The district must look to increase revenue.  The district must create a plan for long term stability. Ultimate Goal

16.  The outlook in the state is not good.  The state continues to fumble their way towards decreased spending.  We cannot count on the state to right their ship.  The Palestine School Board must look at creative ways to provide a quality education for all students, while reducing spending. Outlook

17.  The Palestine School Board understands that there has been a ton of information presented tonight.  I am sure that you have questions. I will be glad to answer as many questions as I can. If I cannot answer a question, I will be glad to get back with you.  The board is here to listen to your questions and concerns. Questions

18.  If you have a question, please raise your hand and Mrs. Mikeworth or Ms. Waldrop will get a microphone to you.  Please state your name and your question.  I will try to answer your question and we will then move on to the next.  You can also reach me at jsornberger@roe12.net or 586-2713jsornberger@roe12.net Questions