LOYAL. LOCAL. COMPLETE.
PARIS – A lot can change in a year.
In fiscal year 2023, Paris Union School District 95 earned a 2.65 out of four on its Illinois State Board of Education (ISBE) Financial Profile assessment – a score that slotted the district under ISBE’s “Financial Early Warning” label.
During a Tuesday, Nov. 12 Board of Education meeting, Nick Helton, partner-in-charge at Kemper CPA Group LLP, revealed the district had increased its score to 3.7 and earned “Recognition” status from ISBE in a single year.
“This is a really big deal,” Paris 95 Superintendent of Schools Mary Morgan Ryan explained in a follow-up interview with a Prairie Press reporter. “It’s not where the state board wants us to be, but it's a leap.”
Perhaps a more recognizable metric for the district’s financial turnaround is the difference in its expenditures and net income, or the revenue remaining after expenses. In 2023, the district recorded $33,432,426 in expenditures – nearly twice the amount from fiscal year 2021 ($18,839,265) and 2022 ($17,813,218). The massive increase in expenses far outpaced the district’s yearly revenue of $20,452,907, leading to a $12,979,519 deficit.
Paris 95’s former Interim Superintendent and current grant consultant Lorraine Bailey slashed the district’s mammoth list of expenditures to $19,001,712, leaving the district with a $1,477,213 surplus in FY-2024.
Bailey explained the increase in cost resulted from purchases and wages covered by grant funding before FY-2023. Those grant funds were spent too quickly, meaning expenses had to be paid out of the district’s pocket.
News of the district’s grant-related woes first broke in July 2023, when a statement from ISBE revealed $3.24 million in grant funding had been misappropriated and needed to be paid back (an amount that later grew to $3.72 million). The statement's release also coincided with an FBI search of then-Superintendent Jeremy Larson’s home in Paris. Larson and the district signed a mutual separation agreement in December 2023 after Larson went on an extended paid administrative leave.
Shortly after Bailey took the reigns, new instances of misused grant money and unchecked spending became almost daily discoveries.
“When you realize you’re spending more than you’re taking in … that’s not sustainable,” Bailey said.
Bailey went to work trying to cut costs. Among the expenses discovered were subscriptions and contracts for services staff weren't using or did not need, stipends that were paid without board or union approval, excess purchases beyond grant parameters and large tuition payments covering continued education for staff members. Per Bailey, staff members receiving tuition assistance had any previous agreements honored at a capped rate.
The district had so many subscription services that, according to Bailey, district staff could not hope to take full advantage of them all.
“It’s hard to imagine how, in a district of our size, we can take full advantage of all that,” she said. “When you’re $13 million over budget, you have to stop the bleeding.”
While several instances of excess spending were easy to identify, whittling costs grew more difficult as time went on. Attrition of several granted-funded positions took place, while others were merged or reorganized to maximize efficiency.
The district’s financial improvement was well-received during the meeting, but the reduction in support staff roles has been met with some mixed reactions. Stephanie Moody, a former substitute teacher, Title I teacher and parent educator in the district, told a Prairie Press reporter that she is concerned the removal of previously grant-funded support staff will impact the classroom.
“I think that (the cuts) correlate to more of a burden on classroom teachers,” Moody said, later noting a need for additional staff to offer direct support for large classrooms. “We live in a different time, and the needs of students have changed.”
Bailey reported that no teachers were laid off during the cuts, and that workers in support positions were offered alternatives to stay within the district. Bailey emphasized the goal was to make cuts “away from the classroom.”
“They (students) are absolutely our number one priority,” Bailey said, later adding, “It’s a very hard balancing act … Anytime you had something and you no longer have it, somebody loses.”
“We’re just trying to make effective use of the staff we have,” Bailey said.
The decrease in expenditures is a welcome change, but Bailey believes “there’s still work to be done” to ensure the district can remain financially stable. The grant paybacks mentioned earlier still loom large.
Bailey explained that, generally, teachers understood the need for expenditure cuts and changes in the procedure for how purchases are made within the district. She commended Paris 95 teachers for their commitment to students during uncertain times.
“Amongst all of that, the teachers were still teaching, they still were doing their jobs, and things didn't impact the classroom. And that was the goal,” she said.
Morgan Ryan expressed her gratitude for Bailey’s work.
“I can’t take credit for that. That work was done before I got here … My thinking about it is (full of) gratitude, because I knew that I was walking into an unsettled community when I got here, and this really shows that, really, we are on the road to recovery,” Morgan Ryan said.
In addition to an improved score from ISBE, Helton explained during Tuesday’s meeting that an audit of the district’s finances also yielded favorable results.
“I’m happy to say we issued a clean audit opinion – we didn't run into any major issues this year,” he said. “There were no findings over grants or controls related to grants, so it was clean across the board this year.”
Helton explained the district would need to improve its days cash on hand (or DCOH, a measurement of how long the district could cover expenses using its presently available cash) and continue paying off debt to improve its ISBE financial profile score. Paris 95’s DCOH sits at 86 days, above 2023’s measurement of 65 but below ISBE’s recommended 180.
Other matters addressed during Tuesday’s meeting included:
ISBE REPORT CARDS
Mayo, Wenz and Memorial all received “commendable” designations on their Illinois Report Cards, which combine metrics like academic growth, attendance and school culture to offer a snapshot of a school’s performance.
School staff presented findings from the report cards and discussed potential growth areas with board members. A more detailed breakdown of each school’s score is planned for a future edition of The Prairie Press. Information on each school’s designation can be found online at www.illinoisreportcard.com.
TAX LEVY
Board members approved a tentative tax levy for District 95, with a public hearing scheduled for 5 p.m. during the board’s Dec. 9 meeting. The levy is 13.65 percent above last year’s levy. This does not mean property taxes will increase by 13.65 percent, it simply means the district is asking for a larger percentage of the aggregate (total) tax rate to help cover various costs. Levy increases can play into tax increases, as can increases in the equalized assessed value of a home which is determined by the county assessor.
21ST CENTURY COMMUNITY LEARNING CENTERS GRANT UPDATE
Morgan Ryan informed board members that the 21st Century Community Learning Center Grant runs through the end of next school year, but the future of the grant is uncertain past that point. The grant funds after-school programs and clubs in the district, like Beyond the Bell.
Morgan Ryan assured board members the district would apply if the grant were reopened, but no word on future funding has been received.
“There’s not a no from the state, and there’s not a yes from the state,” Morgan Ryan explained.
PREMIUM INCREASE
Increases in Paris 95’s insurance premiums for workman’s compensation coverage are going to increase from $48,000 to $72,000. The increase follows several claims, per Morgan Ryan, who plans to investigate the matter further.