In an attempt to determine a school district’s financial fitness, a financial profile score (see, (Illinois State Board of Education, n.d.) was calculated for each district for each fiscal year. This profile score was derived from the Illinois State Board of Education School District Financial Profile. This score is used to determine if a district is at risk of financial difficulties (Illinois State Board of Education, n.d.). The weighted profile score considers the following indicator of a district’s finances: Fund Balance to Revenue Ratio, Expenditures to Revenue Ratio, Days Cash on Hand, Percent of Short-Term Borrowing Available Remaining and Percent of Long- Term Borrowing from SBQLP Available Remaining (when applicable). Each indicator is assigned a score of 1 (highest risk) to 4 (lowest risk). The four (no borrowing from SBQLP) or five (borrowing from SBQLP indicators are then summed to calculate an overall weighted score for each year. Table 1 summarizes the scores for each and the weights of each indicator.
- Don’t see your district? Download the template which includes the sources and calculations!
- Want to contribute to the research? - Follow link in the template. Or request more information the MiPSF