Some local school districts see improvement in financial health, state-wide improvement reported
Financial gains are not something reported in the State of Illinois often.
But the Illinois State Board of Education’s release of the 2019 School District Financial Profile Scores showed that school districts within the state are experiencing some financial gains.
The ISBE reviews each district’s financial profile based on fund balance to revenue ratio, expenditure to revenue ratio, days of cash on hand and percent of short-term and long-term borrowing ability remaining.
The State then gives each district a score and places them in the financial recognition (highest), review, early warning or watch (lowest) category.
In the 16th year of the report, which was developed to promote sound financial management and continue operation of the public schools, 695 of the 851 districts which reported their 2018 financial information fell into ISBE’s top financial recognition category after reports were adjusted for delayed state payments. Of the 852 which reported in 2019, a total of 640 were placed in the top category.
The 177-page report states that districts could be seeing revenue gains due to increased home EAV (Equalized Assessed Valuation) and increased state funding with the passage of the Evidence-Based Funding formula.
Locally, Heritage CUSD (Community Unit School District) #8 moved up from the review to the recognition category. The district joins Ludlow, Prairieview CCSD #197, Rantoul City Schools #137, Rantoul Township #193, St. Joseph CHSD (Consolidated High School District) #305, Thomasboro CCSD #130 and Tolono CUSD #7, which have held onto their ISBE recognition status for several years.
The report showed that Champaign CUSD #4, Gifford and Urbana fell from the recognition status to review status in the 2019 report. But overall, those in the financial review category declined from 147 in the 2018 report to 111 in the 2019 report.
St. Joseph CCSD #169, Oakwood CUSD #76 (in Vermilion County) and the Fisher School District have been placed in the review category for several years.
The State of Illinois also saw improvements in its lowest two categories, early warning and watch, in fiscal year 2019.
Districts in early warning totaled 33 in 2019 compared to 43 in 2018 and those in the lowest category of financial watch totaled out at 12 in 2019 compared to 22 in 2018.
The Mahomet-Seymour CUSD #3 School District is the only district that is in the early warning category in Champaign County. This is its second year in the early warning category after falling from recognition in the 2017 report.
Mahomet-Seymour’s score was hurt by the days of cash on hand (82) and percentage of long-term debt margin remaining (17.92 percent).
Only 2 percent (17) of the school districts in Illinois fall below Mahomet-Seymour in financial ranking.
Districts in the early warning and watch category are monitored to see if they need assistance from ISBE.
