District 87 Initiatives Realize Significant Savings

participation in two cost saving initiatives resulted in $1.16 million in taxpayer savings.

The $668,481 savings came after applying and qualifying for the federal Early Retirement Reinsurance Program, according to a school district report. The Early Retirement Reinsurance Program is a federal program that provides temporary financial assistance to employer plans that continue to provide coverage for early retirees. District 87's received two payments of $429,420 and $239,061 from the federal government to offset costs for the district’s insurance plan.

The program requires the funds be used to strengthen the employer's medical plan with a special focus on wellness initiatives and early detection programs. In addition to the savings from the federal program, the school district refinanced two bonds, which saves taxpayers an additional $500,000.

The school district’s efforts to become more fiscally responsible have not gone unnoticed. In November Standard & Poor’s upgraded District 87’s credit rating to AA+, a grade that means the school district’s economic outlook is stable. The credit ratings agency lauded the district’s progress and raised the rating. "The AA+ credit rating reflects the significant financial improvement Glenbard has realized in the past few years. Glenbard has met its key financial objectives," according to the district report. A balanced budget and maintaining a solvency position were a few of the reasons listed for the improved grade. 

The credit rating change was welcome to district leaders said Peg Mannion, community relations coordinator. Mannion said several years ago the district was running a double-digit deficit.

“We’ve made these tremendous strides and no longer have to borrow to meet our needs,” Mannion said. “We’ve pursued a variety of initiatives to pull out these kinds of savings and results.”