SPRINGFIELD, Ill. (CAPITOL CITY NOW) – There is now a projected deficit in Springfield District 186‘s finances, but there won’t be by the end of the school year.

The district’s business director, Steve Miller, told the school board Tuesday night he’s projecting a total deficit of nearly $8 million now, but the district has to submit to the state a deficit reduction plan that moves the deficit to zero.

“Already this year, we’ve seen some areas where we can save some money,” said Miller.  “If we can save some money here, we’re going to try to save money in that particular aspect.”

Miller says even minor cuts will help, with some supplies and equipment purchases being held off.  He says in some areas last year, the district received more revenue than projected, and there will be transfers of balances from one fund to another under the law but that may not necessarily cover the deficit.  Teacher salaries will not be among them.

Board member Micah Miller, Sub-District 2, said he had tried to warn about the budget situation in past years, but no one took him seriously.  Now, though…

“To see a $10 million budget deficit in 2023, knowing we had $44 million in the bank, I was always able to rationalize that,” said Miller.  “If you’re carrying $10 million in debt, but in your savings account you have $44 million, you can kind of square that away.  To suggest we drop our fund balance from 22 percent (in reserves) way down to seven percent, we wouldn’t need to do that much.  I would have got laughed out of the room.”

Miller called the situation “dire,’ when it could have been solved years ago.

“I don’t think a day goes by where we’re not looking at everything we’re doing, and talking about reducing this deficit,” said Terrance Jordan, Superintendent.  “We’re looking at everything, from an academic return on investment, all the things.  We’re asking tough questions.  We spent time every (Superintendent’s) cabinet meeting, we’re meeting every weekly, to talk about this.  We also have weekly budget meetings where we’re specifically only talking about the budget, and the deficit.”

While a vote on the budget will come at the September 21 meeting, it’s likely that cuts will be made throughout the school year, with a “final budget” coming at the end of the school year.  A public hearing on the district’s budget will also be held September 21.