Paris 95 discusses $1.2 million budget deficit

The Paris 95 Board of Education has endured its fair share of financial hardship over the last 12 months – and the district’s budget reflects it.

A budget amendment hearing for the 2023-24 fiscal year and a subsequent board meeting were held on Monday, June 24. Budget amendment hearings are required anytime the difference between a district’s projected budget and actual expenditures is greater than 10 percent.

“Our budget was off this year, it was developed prior to everything happening in the district,” said interim superintendent Lorraine Bailey.

The district’s budget was upended when reports emerged in June 2023 stating $3.24 million in grant funding issued to Paris 95 was misused. Since then, several other audits by granting agencies have revealed additional funding was misappropriated and must be returned.

Paris 95 parted ways with its previous superintendent, Jeremy Larson, in late December 2023.

Anna Collier, a business consultant for the district, presented the differences between the initial estimated budget and the amended budget.

“The bad news is our salaries were higher than what we had projected,” Collier explained.

Salaries paid to teachers amounted to $268,000 more than the amount budgeted last September. Although Collier was unsure of why the discrepancy exists, she offered a potential explanation.

“I don’t know if things hadn’t been coming out of the teaching line item in prior years and we are more accurate now than in the past,” she continued. “(For) the amended budget, we went through and put actual expenditures for the year in, instead of estimated (expenditures).”

The district is also dealing with a $1.2 million deficit in its education fund – one that has hung over the district since the 2022-23 fiscal year. The deficit exists due in large part to increased payroll, additional staff hires initially made through grants and items ordered through grants. The money the district has already returned to granting agencies like the Illinois State Board of Education (ISBE) and the State of Illinois has added additional pressure. The Illinois Department of Public Health (IDPH) is still reviewing Paris 95’s proposed payback plan.

Although the district is spending in the red at the moment, it still has a balance to operate with.

“We’re deficit spending. As everyone knows, you can’t do that forever, but right now what we are doing is deficit spending,” Bailey said. “There is still a balance there. So we do have a little bit of cushion for those paybacks that we owe to the state.”

The district currently has $75,000 in its working cash fund to carry it through to the end of the fiscal year on June 30. The district’s transportation fund is down to just $5 for the remainder of the year.

Faculty, staff and board members in attendance did receive some good news. While the district’s expenses may have soared, so did its income.

In total, Paris 95 received roughly $1 million in additional funding that was not included in its initial budget. The cash comes courtesy of increases to Title I, Title II, Title IV and early education grants, as well as the arrival of one final round of Elementary and Secondary School Emergency Relief (ESSER) funding.

“We had projected about a million dollars less than what we received,” Collier said.

The district’s amended budget for the 2023-24 school was adopted unanimously. Paris 95 will submit it to the ISBE just before the deadline on June 30. The board will look to adopt its budget for the next school year by Sept. 30.

During the special meeting, the board also…

• Hired nine bus drivers for Paris 95’s new transportation fleet. Paris 95’s 10 new buses will be put to use for Paris High School, transporting students to extracurricular activities. The schools’ previous contract with MSB (Ball) Transportation expired after last year. Paris 95’s new transportation director Herman Taylor will oversee the fleet and the new staff.

“We’re paying $18 an hour for new bus drivers and $20 an hour for those that have a year or more of experience,” Bailey said.

District 95 and District 4 will still be responsible for shuttling students from their respective districts to PHS on school days.

• Discussed a 31.5 percent increase in insurance premiums for Paris 95’s property, casualty and legal liability coverage. The increase stems from equipment and several buildings in the district being assessed at a lower value in previous years. The increase in legal liability coverage premiums stems from another issue.

“Part of that is also due to the issue with Dr. Larson… that may be an issue for a year or two before that gets resolved through the court system,” Bailey said. In total, the district is now paying $112,154 in annual premiums, compared to $85,059 the previous year.

• Approved a 3.1 percent raise for principals within the district.
• Approved a $50 student registration fee and a $40 sports registration fee, capped at $160 per family.