Palatine District 15 goes with revenue rather than tax relief

Faced with a $9.6 million deficit next year, Palatine Township Elementary District 15 officials Wednesday adopted a tax levy that maximizes revenue rather than provide minimal tax relief.

The school board by a 4-3 vote approved increasing the 2011 tax extension by 3 percent to $110.5 million, a move recommended by the administration and one that ensures the district will capture property tax dollars as a result of any new growth.

“We do empathize with the economy and people struggling with their homes and finances,” Superintendent Scott Thompson said.

However, Thompson pointed out, the board last month asked the district to come up with $10 million in cuts in an effort to begin chipping away at the deficit. Passing anything smaller than a 3 percent levy increase would only add to the burden.

Board President Tim Millar joined members Manjula Sriram and Gerard Iannuzzelli in requesting a 1.5 percent tax levy, which equals the rate of inflation, or Consumer Price Index.

They said past board decisions got the district into its financial position, and it’s unfair to ask more from taxpayers who have less than ever to give.

“We’ve made the decision to give more than what was necessary at the time. ... We need to learn to live within our means first,” Sriram said. “(Taxpayers are) already being squeezed out enough.”

With the 3 percent levy increase, Assistant Superintendent Mike Adamczyk calculated that a person whose home is valued at $200,000 will pay $24.16 more in taxes to District 15. The owner of a $150,000 home will pay an additional $18.12.

Had the board gone with a 1.5 percent tax levy increase, District 15 would lose an estimated $500,000 in revenue, increasing next year’s deficit to $10.1 million.

“If you don’t collect it in year one, there’s no way to go back and capture it in future years,” Adamczyk said.

Board member Scott Herr said the problem is that nobody has shared a vision for how the district will cut spending.

“We have a $9.6 million problem,” he said. “Are we going to increase class sizes? Are we going to cut salaries? Are we going to cut programs? Are we going to increase taxes? I think trying to hold back on revenue right now just exacerbates the problem we have.”

Herr later proposed that the board at a future date consider voting to take revenue from new growth off the table when forecasting financial projections. He was joined by members Dave Seiffert, Peggy Babcock and Rich Bokor in voting for the 3 percent increase.

Former Rolling Meadows Alderman Glenn Adams spoke against the bigger levy hike, saying District 15 caused his property taxes to increase by 9 percent and 10 percent over the past two years, respectively. His remarks prompted applause from a handful of people in attendance.

Thompson said officials promise to be frugal and fiscally responsible in the upcoming months as cost-cutting measures are explored, and reiterated there will be a series of community meetings dedicated to the topic.