The Number Crunchers
Bolingbrook, Illinois

Reality Check:  School District's Transportation Fund Operating at a Chronic Deficit

 

 

Valley View school district's financial reports are showing deficits in years 2009-11.  

  


December 1, 2011


By Rhonda Reed-Slaughter

 

As the Valley View school district weigh the option of outsourcing its bus service to a 3rd party, union bus drivers take their message to the streets asking the community to oppose the outsourcing.

 

The school district's claiming "lack of funding" from the state.  While the union bus drivers are crying "foul".

 

How can taxpayers see pass the fog to make an informed decision whether to support or oppose the outsourcing?

 

Here's our suggestion:

 

Step 1:  Learn as much as you can about the issue.

 

Step 2:  Examine the financials.

 

 

The Number Crunchers have published a list of questions that were answered by the district.  This should give you a basic understanding of the issues at play.  Step 1 is complete. [click to view Q&As]

 

Now it's time to move on to Step 2.

 

The Number Crunchers have examined the financials for the transportation department.  The results should help in determining whether to support the outsourcing, or not.  It should also provide an overall understanding of the transportation fund.

 

 

 

TRANSPORTATION FUND (TF)

  • The Transportation Fund is 1 of 9 funds that make up VVSD's Governmental Funds.

 

  • The Transportation Fund has a $12.3 million budget, which represents a mere 6% of total expenditures ($222 million) in the governmental funds.

 

  • The Educational Fund is the largest fund with a budget of approximately $164 million.

 

CLICK TO VIEW THE LIST OF FUNDS & HOW THEY COMPARE

 

 

 

WHAT WE DISCOVERED?

We reviewed VVSD's annual financial reports for fiscal years 2009-2011, as well as the 2012 budget.

 

 

Here's what we found -

 

  • As total receipts/revenue continued to decline from 2009 to 2011, total expenditures remained stagnant during those same years. The district failed to make any significant cuts to adjust for the decline in revenue.  As a result, the fund operated at a combined net deficit of $3 million.

 

  • The 2012 budget is showing an increase in revenue and expenditues.  The district is expecting an increase in revenue from local sources by approximately $1.7 million; as well as an increase in expenditures by an additional $477k.  The net effect for 2012 is a budget deficit of $1.6 million.

 

CLICK TO VIEW GRAPH

 

 

 

SUMMARY

It's clear from examining the financials, Valley View school district will need to make some significant cuts in the transportation fund.  Otherwise, taxpayers should expect to see more deficits as illustrated in the 2012 budget.

 

Where to cut is in the hands of the school board.

 

The outsourcing of its bus service to a 3rd party may not result in a significant reduction in cost, either.  [lets see the final numbers if the board decides to outsource.] 

 

Unless the district can show a minimum of $2 million in clear and definite cuts (in the transportation fund), this issue is nothing more than smoke and mirrors.

 

 

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