Grayslake D46 finance chief says buy, don’t lease
Buying rather than leasing computers in an effort to avoid additional debt is one of the budgeting proposals by Grayslake Elementary District 46’s finance boss.
Chief School Business Official Todd Covault provided the rationale for his recommendation as part of an update on the 2011-12 tentative budget for District 46’s elected officials this week.
District 46’s technology department has indicated interest in entering a three-year computer rotation lease. Covault said it would cost $336,000 to rent the computers over the three years.
“I would not recommend that you go to a lease,” Covault told school board members.
Covault, who joined District 46 in July from a similar job in the south suburbs, said equipment leases count against a school’s authority to issue debt. He said District 46 doesn’t need to add to its already substantial debt.
Moreover, Covault said, equipment leases could cause problems if district officials decide to restructure debt. He said District 46 would need full access to its ability to issue debt if it pursues reducing repayment costs on outstanding loans.
Under the proposal outlined to the school board, District 46 would pay the entire $336,000 for computers from the 2011-12 budget. The district then wouldn’t spend $112,000 in each of the next three years for the lease.
Board member Keith Surroz said officials may have to carefully consider what kind of technology should be purchased. He noted some schools are providing Apple Inc.’s iPad to students for textbook reading.
“Textbooks are really becoming obsolete,” Covault said in response to Surroz. “So, I think you’re going to see movements toward iPads and other forms of technology.”
In another section of the 2011-12 proposed budget, more than $1.2 million would be set aside for maintenance and operations projects that would occur over next summer at District 46’s seven schools.
District 46 will hold a budget hearing open to the public at 6:30 p.m. Wednesday, Sept. 21. It’ll be at Meadowview School, 291 Lexington Lane, Grayslake.
School budgets must be approved by Sept. 30.