District 34 Financial Information
District 34 has been changing the way our schools operate since a request to the community for referendum failed to pass in Glenview in 2001. They have been able to have expenses exceed revenues by spending down reserve funds that once were reqiured by school board policy to be kept at 50% and now are required at 30%. From 2001 to 2006 they reduced spending in areas including reductions in supplies, professional development, field trip funding, non-mandated testing, staff, and increased class sizes. Budget constraint actions accounted for a savings of $6,360,000 from school year 2001-2 to 2004-5. An additional $1.1 million dollars in cuts were added for the 2006/7 school year. These cuts included staff reductions that are being closely monitored by the District to guage the resulting impacts.
It has been strongly recommended to the School Board by the Citizens Finance Committee that the reserve funds do not fall below 30%. This level of reserves is necessary to operate responsibly and maintain a sound financial profile.
While the Board of Education discussed a possible referendum in fall 2005 and early 2006 to relieve the financial strain on the District, it was deemed not necessary due to previous board fiscal management and a more positive revenues that originally projected. The Board analyzed many factors before making this decision in 2006.
Items that the Board continues to watch for it's long term impact to the future budgets include: updated financial forecasts with possible increased military impact aid payments (pending legislation), changes in funding for special education, affects of current class sizes, our changing student population, military housing construction projects, and the ability to attain the district's longe-range goals which outline the following areas of needed focus to achieve.
Align grade level student learning standards and common assessments |
Develop student ownership and responsibility for their own learning. |
Align professional development for all certified and support staff to attain District and building goals and strategies. |
Address projected enrollment growth to ensure quality programs, productive learning environment, flexibility of space, class size |
Implement a District-wide problem-solving process to address the full spectrum of needs for all children. |
Implement consistent communication and deployment of our collaborative decision making structures and processes for all certified and support staff. |
Promote continuous and clear understanding of financial health and fiscal responsibility to staff, families and community. |
Develop a competitive compensation system in order to attract and retain a highly qualified staff. |
Measure and respond to student, staff, family and community satisfaction data/Organizational Health data. |
The Board has not been struggling with these issues alone. In the fall of 2005 the Board requested three committees to be formed in that included district administrators, support staff, teachers, parents, and community members, to provide information to help them determine the best way to meet our schools' and community's needs. The groups have all made initial presentations to the Board.
The Budget Reduction Task Force: a report was given to prioritize a recommendation of possible district budget cuts that could cover $3.6 million of outlined reductions at the December 12, 2005 School Board Meeting.
The Citizens’ Finance Advisory Committee: this is a group of financally experiences community members who continue to work with the Administration and School Board to provide financially based reccomendations.
Preferred Future Committee - a report outlaying a proposed new District-wide strategic plan was given in the spring of 2006 and adopted by the Board. (See the Executive Summary of the adopted plan.)
They have also recently received reports on the expected increase in enrollments over the next 5 years. By 2010 enrollment has been projected to rise from 4,200 to between 4,500 - 4,900 students. (Pioneer Press article about census of the Glen) The Facilities Committee will be providing it's annual report to the Board soon about the potential impacts of this increased enrollment in light of current construction projects (2007/2008).
Questions you may have...
1. Doesn't the school already get an increase in taxes each year?
2. With all the growth in Glenview of homes and families, hasn't the district already had significant increases in property taxes?
3. What is a tax cap and how does it work?
4. How much of an increase in taxes will the school district need?
5. Will any of the recommended budget cuts set forth at the December meeting by the Task Force be put in place next year?
6. What is Equalized Assessed Valuation (EAV)?
7. Are there other districts in the area that have failed to pass a referendum and had to experienced similar sized budget cuts? What has happened to them?
8. What are reserve funds and how are they used?
9. How can I stay informed with the district's finances and School Board's decisions on how to finance the district?
10. How can I get involved to help inform other Glenview citizens about what is happening with District 34 finances?
11. What budget cuts might be made and how would they impact my kids?
12. What might the long term affects be of reducing the districts budget by 13% with enrollment increasing at the same time?
Have a question that isn't listed here? Send it to news@lyonprpta.org.
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1. Doesn't the school already get an increase in taxes each year?
Yes, the District receives a percentage increase on existing homes that is capped by state law to 5% or the CPI for that year, whichever is lower. The CPI increase has been lower for the past several years and has ranged between 1.6% and 3.4%. This is an aggregate percentage across the entire District, therefore one person’s taxes might go up 15% and another’s might go up just 1% but overall the District collects just the CPI or 5%, whichever is lower. This increase has not been enough to offset growing expenses and enrollment to balance the budget.
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2. With all the growth in Glenview of homes and families, hasn't the district already had significant increases in property taxes?
For new homes built in Glenview, outside The Glen, the District receives an increase in taxes that are not capped by tax caps. However, this is a small percentage when you consider the overall District and the number of homes within the District. The Glen is within a TIF district, meaning all taxes from homes in the Glen go to the Village and the Village then parcels those funds out to the taxing bodies based on formulas. We receive “make-whole” payments from the Village per child from the Glen attending our schools.
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3. What is a tax cap and how does it work?
The tax cap limits the amount of taxes a school district can collect. It is designed to require school districts to ask voters for an increase in funds if they want to maintain current staffing and programming. Link to the Illinois State Board of Education explanation of Property Tax Extension Limitation Law or Tax Caps.
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4. How much of an increase in taxes will the school district need?
That depends upon several factors: Should the increase maintain, increase, or decrease the current programming? How long should the increase last?
The Citizen’s Finance Advisory Committee has recommended a .55 cent increase. This is projected to last approximately 7 years and maintain (and perhaps improve) current offerings.
For reference, the increase of .55 cents for someone currently paying $6,000 in taxes each year would be $576 per year - or slightly less than 10% of the overall tax bill.
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5. Will any of the recommended budget cuts set forth at the December meeting by the Budget Reduction Task Force be put in place next school year?
Possibly - That is a Board decision they will be discussing over the next several meetings.
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6. What is Equalized Assessed Valuation (EAV)?
EAV a formula that helps determine the amount of property taxes you pay and is based upon the assessed value of your home as determined by the Cook County Assessors Office. The assessor’s website explains it this way: Equalized Assessed Valuation (EAV) is the assessed valuation multiplied by the equalization factor. The Equalization Factor is a factor determined by the Illinois Department of Revenue each year to ensure an equal assessment among all 102 counties in the state. State statute requires that the aggregate value of assessments within each county must be equalized at 33 1/3% of the estimated Fair Market Value of real property in the county. Also known as the "multiplier."
If a referendum is scheduled, look for information on tax rate increases based upon what you are currently paying in property tax, rather than based upon your home's value. This will be a simpler way to determine how much a tax rate increase could potentially affect you.
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7. Are there other districts in the area that have failed to pass a referendum and had to experienced similar sized budget cuts? What has happened to them?
One example would be District 63 which failed a referendum, did major cuts, then passed a referendum after the cuts. This can impact schools dramatically depending upon the situation. It can cause schools and Districts to lose good teachers and staff as they seek out other opportunities during the reductions. Additionally, Districts and schools find it difficult to then find good employees even after a successful referendum. Additionally, reputations of schools and communities can be damaged through failed referendums.
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8. What are reserve funds and how are they used?
Reserve funds are in simple terms the district’s savings account. One reason we need at least 30% (the state requires 25% or you are put on a financial watch list) is that we basically are paid twice each year – once in the fall, once in the spring. Imagine as an individual if you were paid just twice a year – you would need to save a large portion of that paycheck to cover costs between paychecks. That is essentially why the District’s needs 30% in reserves to start the school year each year. (More information from the Illinois State Board of Education on the Financial Watch List.)
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9. How can I stay informed with the district's finances and School Board's decisions on how to finance the district?
Keep reading your school newsletter, visit the district website, sign up for e-mail updates on the district website, read the Schoolook that is mailed to every home every two months, attend Board meetings, attend input sessions when they are scheduled and call the District office and speak with Brett Clark, Director of Community Relations, or any administrator. Check out/join a community forum such as "Glenview Residents for Quality Schools" at http://groups.yahoo.com/group/quality_schools/.
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10. How can I get involved to help inform other Glenview citizens about what is happening with District 34 finances?
Become informed through the means listed above and then spread the information to your friends and neighbors. You can also connect with other parents by joining the "Glenview Residents for Quality Schools" Yahoo! group by linking to http://groups.yahoo.com/group/quality_schools/. A grass roots campaign in support of the referendum has also formed. Learn more at their website - www.sos34.org.
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11. What budget cuts might be made and how would they impact my kids?
No decision has been made by the Board at this point about any cuts. The list of budget cuts proposed by the Budget Reduction Task Force committee has been presented to the Board and was completed with the idea of least harm to students, but the cuts identified will impact students. The full list of proposed cuts is posted on the district website along with the associated impacts of those cuts. The longer the District goes without an increase, the more cuts will need to be made as expense will continue to rise despite the fact that revenues will be relatively steady.
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12. What might the long term affects be of reducing the districts budget by 20% with enrollment increasing at the same time?
Again, no decision about cuts has been made by the Board. As for increasing enrollment combined with no additional revenue could mean the reduction or full elimination of many non-mandated programs within the District, reduction of teachers, staff and administrators, increased class size, less opportunities for children, less individualized instruction and less programs designed to help students success.
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Here are some Internet links with information relative to the topics above....
Class size
D34 Class Sizes Lowered for Kindergarten (spring 2007)- 2nd Grade. Link here for more information.
Illinois Interactive Report Card
National Education Association
http://www.nea.org/classsize/index.html http://www.nea.org/classsize/aerastudy03.html
American Federation of Teachers
http://www.aft.org/topics/classsize/index.htm
Wisconsin Education Association Council
http://www.weac.org/sage/research/gsclasssize.htm
Health on the Net Foundation
http://www.hon.ch/News/HSN/525529.html
Reduce Class Size Now
http://www.reduceclasssizenow.org/
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Tax Caps
Illinois State Board of Education - explanation of Property Tax Extension Limitation Law or Tax Caps - link here and link here.
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School Funding
Facts about Illinois' education crisis - by A+ Illinois
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School Report Cards
Illinois Interactive Report Card for District 34 - link here.
Standard & Poor's SchoolMatters - an overview of schools nationwide. Link here for Glenview district information.
