Evanston/Skokie School District 65 leaders are optimistic about the district’s financial situation despite a looming budget deficit of up to $5.8 million.

Several board members praised the administration for its plan for proposed budget cuts at a school board meeting Monday night.

“Initially I was very stressed out and worried about this budget when it first hit,” member Andrew Pigozzi said. “Where the budget stands today and where it’s projected, I feel a whole lot better about it.”

The plan includes a list of cuts in instructional programs, administrative and other areas, totalling $5.1 million. Because the district is uncertain of the amount of state funding it will receive, the plan details three scenarios for financial projections and reductions, ranging from the worst case to the best case scenario.

While the worst case assumes a $5.8 million projected deficit and the complete elimination of state aid, the best case assumes a $2.8 million projected deficit and only a reduction in state aid. The “middle of the road scenario” assumes $4 million in state aid reductions and a complete elimination of state aid, except a poverty grant.

Even if the district is forced to implement the worst case, administrators are expecting a balanced budget for fiscal year 2011 and an estimated $500,000 surplus for fiscal year 2012. The best and middle outcomes would produce surpluses for both fiscal year 2011 and fiscal year 2012.

Administrators continually review budget reductions, said Superintendent Hardy Murphy, calling the budget a “fluid situation.”

“We need to be prepared for the worst but also be able to take advantage of the best,” he said. “Things may not end up as badly as we think.”

In addition, Murphy said the district has reinstated roughly one-third of the 29 teachers who received layoff notices in March. He said the district hopes to continue rehiring teachers.

“Everyday we’re working on this thing to make sure our district lands on its feet,” he said.

Board President Keith Terry said he believes the loss of one job is too much, but in comparison to job cuts of other school districts across the state, District 65 is faring well.

The state may have formal budget projections by the end of May, Chief Financial Officer Mary Brown said.

Administrators will present a tentative budget to the board in August, and the board will finalize and adopt the budget in September.

School Board Elections

Board members re-elected Terry as current school board president for the upcoming school year. The president of the school board keeps other board members focused and appoints board members to committees.

For his upcoming term, Terry said he wanted to emphasize improving school safety and using school spaces creatively, especially to address enrollment issues.

“Over the last year, I think we’ve done and made some significant progress,” Terry said, adding the district still has work to do.

The board also re-elected Jerome Summers as vice-president. [email protected]