What has caused expenses to increase 6.6% annually?
The school district has seen an increase in expenses due to rising health care costs, state and federal mandates, salary increases, growth in student enrollment and rising energy and utility costs. In District 90, health insurance costs increased an average of 8.63% from 1999 to 2004, compared to the insurance industry's overall rate increase of 13.26%. While District 90 has kept health care insurance costs below industry averages, CPI has averaged only 2.54% during the same period. Since the school district is limited to an increase in annual funding by the lesser of CPI or 5%, the disparity between CPI and rising health insurance costs is one reason expenses outpace revenues. Energy and utility costs have continued to increase. The District has controlled these increases, which have averaged about 4% per year, since joining a buying cooperative with other school districts.
In addition, state and federal mandates account for $4.2 million of expenditures in the current budget. District 90 will only receive $1.5 million in revenue from state and federal sources for the current budget year. This disparity also contributes to the gap between expenses and revenues.
Enrollment has increased at an overall average rate of 5.4% for the period between 1999 and 2005. It was anticipated that enrollment would peak in 2003 and begin to decline, but instead enrollment has increased. More families are moving into River Forest and seeking out quality public schools.
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Please let us know what additional information concerning District 90 programs or fiscal challenges we can provide by completing the form below. The most common and appropriate questions will be included on this page in regular, frequent updates. Or, if you prefer, you can telephone the Committee to Preserve River Forest Schools hotline at (708) 488-1647.