EF estimates $1.2M loss due to pandemic

By CHRISTINE HAINES

chaines@yourmvi.com

The COVID-19 pandemic is expected to cost the Elizabeth Forward School District an estimated $1.2 million in lost revenues for the 2020-21 school year.

That’s according to business manager Albert Ragan, who presented the proposed budget to the school board during a meeting this week. Ragan said he based the new budget on a 2% loss of real estate tax, 15% loss of earned income tax, 15% loss of real estate transfer tax and a 30% loss of delinquent tax collection.

In addition, while there was a $518,000 savings in transportation costs for the current school year, that will mean a reduction in the state transportation subsidy for next school year, unless the state makes changes in the way the subsidy is calculated, Ragan said.

As presented, the $45 million general fund budget will result in a $2.3 million decrease in the district’s fund balance, leaving the district with a balance at the end of the 2020-21 school year of just $48,456.

“We’ve done a really good job over the years to put a fund balance together and then COVID-19,” said Dr. Todd Keruskin, the district superintendent.

Keruskin said the district expects to receive $243,000 from the federal CARES Act that has not been included in the budget. Keruskin said four times that amount may also be available to the district through the federal Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, but none of that is certain.

Ragan said he is still working on the figures for how much a mill of taxes will generate, but the district could raise taxes by 3.6% under the state index, which would place taxes at a maximum of 25.6823 mills, or just under $257 per $10,000 of assessed value. 

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