Elementary Consolidation Plan

Harlem 122 has experienced significant demographic and financial changes that require long-term structural planning. Key factors include:

• Enrollment Decline Leading to Underutilized Buildings
  Elementary enrollment has dropped by more than 1,200 students since 2007, leaving several buildings underutilized.  In 2007, the Harlem School District had 8,005 students compared to the current enrollment of 5,846.  Winnebago County has seen steady decreases in birth rates for more than a decade, meaning smaller kindergarten classes will continue.  This enrollment decline has led to several buildings being under 60% capacity.

• Financial Sustainability
  The district faces a financial deficit driven by rising costs and declining revenue sources. Operating more schools than we can fill pulls funding away from classrooms and programs. The Education Fund deficit for FY26 is $3.1 million.

Reconsolidation allows the district to protect instruction, maintain programs, and plan proactively rather than making emergency changes later.

The district is facing financial pressure due to several revenue sources failing to keep pace with rising costs. Corporate Personal Property Replacement Tax (CPPRT) has dropped nearly $6 million in two years and has not matched inflation over the last five years, creating an unstable funding stream tied to fluctuating corporate profits.  Evidence-Based Funding from the State of Illinois has also lagged behind inflation for four years.  At the same time, expenditures have increased, including a $7 million rise in Education Fund salaries to meet state wage requirements and remain competitive amid statewide labor shortages.  Healthcare costs have grown even more sharply (up 38% in four years) consuming a greater portion of the district’s operating budget and limiting resources for classrooms, staffing, and student supports.  Together, these trends have created a challenging financial environment that requires careful planning to maintain high-quality services for students and families.