School Budget Shortfall Is Millions Less Than Expected

Chicago School Board financial officials pulled off a surpriseTuesday, estimating that their 1995-96 budget shortfall will be $35million less than originally anticipated.

Chief Financial Officer Charley Gillispie estimated theprojected deficit at $290 million. The budget for the coming year isbalanced because of a $378 million, two-year borrowing plan workedout last November, but the borrowing ends Aug. 31, 1995.

The new estimate in part reflects the board's decision lastweek to save $24 million of a $50 million surplus that was created byunexpected vacancies in the system.

Gillispie cautioned that the estimated shortfall does notinclude any pay …