District Financial Overview
The following information regarding school finances is intended to give District 430 citizens a better understanding of their investment in our school system and an explanation of where revenues come from to operate our schools and where it is allocated. It also explains how our budget is built and how it is monitored.
Where The Money Comes From
Money to educate the students and operate District 430 will come from various sources. The largest portion of District 430’s revenue will come from local sources.
The major source of local revenue is in the form of real estate taxes that homeowners and businesses pay on their properties. Other local sources include student fees, interest earnings, personal property replacement taxes paid by corporations, and developer impact fees.
The State of Illinois will provide District 430 revenue mostly in the form of general state aid based upon student attendance and from categorical and other grant funding. The Federal government provides the district revenue in the form of grants such as Title I funding.
Where The Money Goes
Education is a people intensive business, and with approximately 350 employees, a large portion of the budget will go towards salaries and benefits for the people who provide instructional and support services for the almost 2,500 children who attend District 430 schools. The remainder is for improvement of instruction, business services, operations & maintenance, bond payments, transportation, food services and special education & services.
How The Budget Is Developed
The preparation, adoption and action on the district’s budget is a yearly process involving the employees, administrators, the Board of Education, and input from the community. Needs are determined at the building level and conveyed by administrators to the District’s Administrative Office and to the Board of Education. The District builds the budget based on the identified needs, revenue projections, and priorities of the Board. Input from the community is welcomed at regular & committee meetings as well as during public hearings.
The spending of the district is guided by all of the following:
How The Budget Is Divided
The District’s budget is divided into eight separate funds. These can be thought of as eight separate bank accounts from which the money is used for different purposes. Three of the district’s funds are generally referred to as the “operating funds” because they regularly spend the dollars that are necessary to operate the district, i.e. get the students to school, pay for the staff to educate them, and cover the costs to maintain the school facilities. The three operating funds are the Education Fund, the Operations and Maintenance Fund, and the Transportation Fund.
The separation of the district’s financial transactions on a fund basis helps assure that revenues raised for special purposes are spent only on the appropriate types of expenditures for these purposes.
The eight funds and examples of the types of expenditures that are made from each are:
How The Budget Is Monitored
There are numerous checks and balances built into the district’s financial system to maintain spending within the budgeted amounts. Every administrator has the responsibility for overseeing and managing the budget for his/her building or department. The Board of Education receives monthly updates from the District Office on the status of revenues and expenditures. The Board of Education reviews monthly the list of bills and financial reports. The records of the school district are examined annually in a comprehensive audit conducted by an independent auditing firm.
The District’s budget and monthly financial reports are on display for the public to view at any time at the District Administrative Office.