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 2,100 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 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:

  • Education Fund - pays the salaries and employee benefits of educational professional and support staff; buys the textbooks, supplies, purchased services and equipment for classrooms; pays for the district's lunch program, and liability insurance premiums.
  • Operations and Maintenance Fund - pays the salaries and supplies of custodial and building maintenance staff, painting and maintenance costs of buildings, and energy-related equipment and services.
  • Debt Service - makes the outstanding principal and interest payments for the bonds issued by the district due to successful referendum to build, repair and maintain the buildings of the district.
  • Transportation Fund - pays all expenses related to operating the transportation department.
  • Illinois Municipal Retirement / Social Security Fund - pays necessary employer contributions for Social Security, Medicare, and the Illinois Municipal Retirement System as mandated by Federal and State laws.
  • Capital Projects - devoted exclusively to construction expenditures for schools as approved by the voters.
  • Working Cash Fund - does not make expenditures, but makes interest-free loans to the other funds of the district when they have cash flow needs.
  • Fire Prevention and Safety Fund - used exclusively to keep track of revenues and expenditures that relate to State-approved work identified as necessary for fire prevention and safety of students in buildings.

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.

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