ISBE Financial Profile

The Illinois State Board of Education (ISBE) has awarded a "Financial Recognition" designation -- the highest category -- to District 64 for 2018 (utilizing data from the fiscal year ended June 30, 2017) based on the ISBE's financial profile methodology.

This is the ninth consecutive year District 64 has received a "perfect 4.0" score.

Although it is somewhat limited in scope, the ISBE Financial Profile is essentially one benchmarking tool used by analysts to evaluate a school district's financial health at one point in time as assessed on a set of indicators selected by the State.

What is the financial profile system?

ISBE has used its financial profile to evaluate districts since 2003. The overarching goal is to objectively assess the financial health of all school districts so that the public can gain a better understanding of where their district ranks in comparison to others. All of the amounts that comprise the calculation formula are derived from the ISBE Annual Financial Report, which is audited by the District's external auditors.

There are four ISBE financial profile designations listed in increasing order of risk and concern:

  • Financial Recognition –– highest category of financial strength, requiring little or no review by ISBE. Score 3.54 – 4.00.
  • Financial Review –– ISBE will monitor for potential downward trends. Score 3.08 – 3.53.
  • Financial Early Warning –– ISBE will monitor closely and offer proactive technical assistance. Score 2.62 – 3.07.
  • Financial Watch –– greatest risk – district will be closely monitored by ISBE with the offer of technical assistance including, but not limited to, financial projections, cash flow analysis, budgeting, personnel inventories, and enrollment projections. Score 1.00 – 2.61.

A district in the latter two categories could be reviewed by the ISBE to determine whether it requires further financial oversight.

How has District 64 scored over time?

District 64 earned the highest category under the current profile methodology for the first time in 2007 following the Park Ridge-Niles voters' decision to suspend the Property Tax Extension Limitation Law (PTELL or the "tax cap") for two years in order to restore the District's financial health.

DATA YEAR 2002 2003 2004 2005 2006
Profile
Designation
Financial
Early
Warning
Financial
Review
Financial
Watch
Financial
Early
Warning
Financial
Review
Profile Score
(Out of 4.00)
3.10 3.10 2.30 2.75 3.45
DATA YEAR 2007 2008 2009 2010 2011
Profile
Designation
Financial Recognition Financial Recognition Financial Recognition Financial Recognition Financial Recognition
Profile Score
(Out of 4.00)
3.55 3.90 4.00 4.00 4.00
DATA YEAR 2012 2013 2014 2015 2016
Profile
Designation
Financial Recognition Financial Recognition Financial Recognition Financial Recognition Financial Recognition
Profile Score
(Out of 4.00)
4.00 4.00 4.00 4.00 4.00
DATA YEAR 2017 2018 2019 2020 2021
Profile
Designation
Financial Recognition TBD TBD TBD TBD
Profile Score
(Out of 4.00)
4.00        

How does District 64 score on the specific benchmarks used?

Each district’s profile is calculated through a process of benchmarking five financial indicators:

  • Fund Balance to Revenue Ratio: indicates the overall financial strength of a district. (35% of the Profile Score)
  • Expenditure to Revenue Ratio: identifies how much a district spent for each dollar it received. (35% of the Profile Score)
  • Days Cash on Hand: provides a projected estimate of the number of days a district could meet operating expenses if no additional revenues were received. (10% of the Profile Score)
  • Percent of Remaining Short-Term Borrowing Ability: reflects the remaining short-term debt extension available to a district.  (10% of the Profile Score)
  • Percent of Remaining Long-Term Borrowing Abiility: percentage of a district’s debt limit not already used. (10% of the Profile Score)

For District 64, the greatest factors contributing to the Financial Recognition designation were the significant increases in the "Fund Balance to Revenue Ratio" and the "Expenditure to Revenue Ratio," due primarily to the successful referendum in 2007.

Additional resources

The information on this page originally appeared as a "chapter" in an online Education Finance Fact Book, created in a joint effort by the District 64 Community Finance Committee and District 64 in 2006-07.