Cairo Association of Teachers - Newsletter

CAT Tracks for March 13, 2008 STATE AID IN QUESTION?

Cairo Council and Mayor finally bury hatchet...not so with Governor and General Assembly!

Officials hope state aid rumor isn't true

BY JOHN D. HOMAN, the southern

MARION - Marion Unit 2 School Superintendent Wade Hudgens hopes the rumor he has heard about state aid payments for school districts statewide being delayed or nixed by the governor's office is simply that - a rumor.

Hudgens said state legislators have speculated as much to some school superintendents. Rumor has it that the 23rd and 24th state aid payments for schools are the ones that will be withheld.

"If that were to happen, it would be horrific for us," Hudgens said. "Losing two payments would cost us about $900,000, which would be about $150,000 less than we received in state aid last year."

Hudgens said the payments are due by the end of this fiscal year or June 30.

"The governor is the one who authorizes the payments. I wish he would take action right away and let the schools in the state know they have nothing to be concerned about. Because if these payments aren't made, we will be facing some huge deficits.

"Should we continue to progress as though we will receive the payments on time, or do we make cuts now in anticipation that we may not be getting the money? These are all questions that we need to have answered."

Matt Vanover, a spokesman for the Illinois State Board of Education, said the final two state aid payments (totaling $390 million) are not scheduled to be paid until the next fiscal year. He said the state's general aid payment cycle began in August 2007 and runs through July of this year.

"So the 23rd and 24th payments are legally not paid until July," Vanover said. "But over the past few years, the state has bumped those final payments from July to June, so they can be counted on the current fiscal year. A final decision in that regard will not be made until June."

Du Quoin Superintendent Gary Kelly said he has heard the same rumors of payments being withheld.

"If that were to happen, we would lose out on $576,000 from the state and that would definitely have an impact on our financial profile."

Kelly said Du Quoin had to borrow money early in the school year because increases in state aid were not received until the middle of the year.

"And if you have to borrow money, you have to pay interest on the amount you borrow."

State Rep. John Bradley, D-Marion, said the rumor of withheld payments has "floated around" for a long time.

"Because of the fiscal crisis this state is in and the poor relationships with this administration and the rest of the state, I can understand how these rumors have run rampant. But I don't know anything specific. The legislature appropriated the money. Now it's up to the administration to distribute the money."

State Rep. Brandon Phelps, D-Harrisburg, said he is meeting with a representative of the ISBE today.

"I called this morning to see if someone would meet with me," Phelps said. "Our schools can't afford to lose anything."