At the Board's direction, the administration prepared a proposed preliminary budget that includes a tax increase not to exceed the Act 1 index (2.5%) set by the state. At this time, expenditures for 2017-2018 are projected at $106,559,218 requiring a millage increase of .7185 above the current millage of 28.7400, resulting in a proposed millage rate of 29.4585.

While it is early in the annual budgeting process, the school district is required to meet a series of state deadlines in preparing a budget for approval, currently scheduled for June 27, 2017. The budgeting process commonly finds the Finance Committee of the Board and the administration working together over the next few months to prepare a final budget. The proposed preliminary budget takes into consideration the current assumptions:

• All staffing groups are budgeted with a 0% salary increase. Contract negotiations are currently in process for all labor groups and no such figure otherwise has been determined.
  
• Employee benefits were calculated at healthcare consortium average for medical and prescription with the assumption that consortium cost projections will firm up over the next few months.
  
• Funding for the replacement of equipment for grounds/custodial/maintenance was included ($100,000).
  
• The reduction of an administrative staff position.
  
• Costs associated with a $10 million bonding in each of the next five years to address the facility needs.
  
• A portion of expense for the proposed new English Language Arts resource ($224,000) was included as well.
  

The Board's special meeting on January 10 furthered the discussion on school consolidation, as the Board heard a presentation and update from their consultants, Milone and MacBroom.

The Board directed the administration to gather financial data related to the closure of Audubon Elementary and/or the closure of Arrowhead Elementary. They requested that Milone and MacBroom prepare detailed information for the consideration of scenarios that would see the closure of two elementary schools that would include grade reconfigurations of K-3, 4-5, and 6-8, 9-12 OR 6-7, 8-12. Finally, the Board was in agreement that a decision not to close a school would result in a redistricting at the very least.

Milone and MacBroom will present final recommendations during a February 6 special meeting of the Board, beginning at 7 p.m. at Arcola Intermediate School. At that time, several points will be under consideration for the Board:

• The closure of Audubon or Arrowhead elementary school
  
• The closure of Audubon and Arrowhead elementary schools, and the grade reconfiguration possibilities.
  

All other items listed on the January 24 agenda were approved.

Above, left to right - School Board President Chris Boardman, Michael Legnola, Carmela Maro, Eagleville Principal Dr. Zanthia Reddish, and Superintendent Dr. David Zerbe.