NEW LENOX – Lincoln-Way Superintendent Scott Tingley said the high school district needs to plan for the worst yet hope for the best, as it faces alarming financial challenges.
Tingley addressed Lincoln-Way board members and the public at a meeting Thursday on the future of the school district's finances amid rumors in recent weeks of possible school closings, which school officials have denied.
Lincoln-Way found itself with the lowest rating on the state’s financial watch list because of decreasing enrollment and state aid, as well as an economy impacted by the recession.
Tingley said if Lincoln-Way is unable to significantly reduce its deficits, within two or three years it will be placed on a financial oversight panel, at which point the state will close two schools.
“We’re now at a time where we have an opportunity to redirect our financial course,” he said to the audience in the Lincoln-Way Central auditorium. “I think it’s important as we do this, we maintain the integrity of our academic programs.”
School officials are working with the Illinois State Board of Education on resolving its issues. They also plan to work with PMA Financial Network, with anticipations of having a financial analysis ready for a June 11 meeting.
The analysis would include a best-case scenario, a worst-case scenario and a scenario of something in-between for the school district’s financial future, he said.
Tingley also anticipates a feasibility study of closing one school and savings associated with that measure, as well as savings associated with cutting classes for every student. Other options to consider would be eliminating programs, as well as proposing referendums.
Tingley provided an overview of how the school district found itself with a financial watch rating from ISBE at Thursday's meeting, as well as several charts detailing its declining fund balances, enrollment and overall assessed property values.
Board member Christopher McFadden said it was clear after looking at the charts, Lincoln-Way had three options: destroy the curriculum, go for a referendum or re-consider having four high schools. He said the school district is running a structural deficit between $5 to $7 million a year.
“What’s the best thing to do for educating our kids? Is it to have four schools or is it to have three?” McFadden asked.
He said the four schools are below capacity but if running them is the best way to get students involved in extra-curricular activities and other programs, they may need think about a tax increase referendum.
But if running all four is hurting educational options for the students, that might mean closing one of the schools.
“Obviously, none of these are easy decisions to make and I think all of the decisions we made up until now were made in good faith,” McFadden said. “Sometimes the best projections don’t work out the way we want them to.”