Evanston Skokie School District 65 is experiencing its largest financial challenge in the past decade. Its Personnel, Building, Grounds and Finance Committee received a report on Feb. 12 stating the district had a roughly $7 million budget deficit in 2023.
Due to the deficit, district administrators say the district must make at least $5 million in permanent budget reductions for next school year.
“This sounds like a lot and I know there will undoubtedly be feelings of concern and uncertainty,” Interim Superintendent Angel Turner wrote in a statement. “Our leadership team is developing a plan that prioritizes equity and keeps reductions as far from the classroom as possible.”
The report, which was presented by the district’s independent financial advisor Robert Grossi from Illuminate, Inc., said transportation costs and the district’s staff size contributed to budgeting concerns.
Transportation expenses have exploded since the pandemic, Grossi said, which resulted in the district spending roughly $10 million in transportation in 2023 versus $4 million in 2020. The increased expense comes in part due to labor challenges, Grossi told the committee.
”A lot of people who would have taken jobs as bus drivers are taking alternate (opportunities), such as delivering for Amazon,” Grossi said. “They’re delivering packages rather than students and making more money. Packages are quieter.”
According to Grossi, bussing companies have faced increased cost to attract drivers which in turn drives up all around costs or force schools to find alternative methods.
Grossi also said the district has seen an enrollment decline, citing a population of 7,943 students in 2018 versus 6,316 students in 2023. At the same time, Grossi said the district has changed its teacher to student ratio. In 2018 there was a 14.2 students per teacher ratio versus 12.4 in 2023, Grossi’s report stated.
If no budget reductions are made, Grossi said to expect a roughly $14.5 million deficit by 2029. To adjust to declining enrollment and budgeting concerns, Turner said the district will have an ongoing dialogue to find the “right size” for the district.
”Our team has gathered quite a bit of data and community input through our multi-year student assignment process,” Turner said. “This has included ongoing dialogue on the need to ‘right size’ our district footprint to better utilize our school buildings and potentially consolidate where needed.”
Turner said the district’s declining enrollment provides a unique opportunity when addressing these budgetary challenges, saying the District 65 experience won’t be substantially impacted by budget cuts.
”Declining enrollment provides the opportunity to potentially take decisive action to stabilize the district’s financial operations without adversely impacting student learning opportunities,” Turner said.
District 65 is working toward opening a new school in Evanston’s Fifth Ward and part of the Evanston City Council’s efforts in the approval process was to ensure it was friendly to walking commuters and reduced the need for vehicle transportation. Turner said the school board took necessary financial actions in January regarding the school by “approving (a) redesign at a significantly reduced cost.”
School board members will consider a reduction plan in March, Turner said.
“We will continue to identify further efficiencies so that we can deliver quality services in a more effective manner,” Tanner wrote.
Corey Schmidt is a freelance reporter with Pioneer Press.