Dist. 211 proposes tax levy for newly uncertain times

As uncomfortable as it may always have been for taxpayers, the determination of annual property tax levies probably has become a familiar process for most suburban school districts — until now.

But with the potential impacts of pension reform, Senate Bill 16 and other measures that could affect state funding, financial forecasts are being challenged by an unprecedented level of uncertainty for local school districts, Palatine-Schaumburg High School District 211 officials say.

District administrators presented a new proposed levy of $216.1 million to the school board Thursday night.

But the possibility of that figure changing before its final approval on Dec. 11 has a lot to do with whether state legislators vote on Senate Bill 16 by then, Superintendent Dan Cates said.

The bill's intent is to reduce the funding disparity among Illinois school districts by allocating more state money to poorer districts at the expense of wealthier ones.

Between that bill and the recent pension reform bill, there's a potential $16 million loss for District 211's annual budget, Chief Operating Officer Lauren Hummel said.

About 86 percent of the district's funding comes from local property taxes. The second-biggest source — currently about 6.4 percent — is state funding.

But if various changes being considered in Springfield were implemented, program user fees would be higher than state funding, District 211 Treasurer Barb Peterson said.

The new tax levy represents a 1.7 percent increase over last year's.

Though the levy supports the needs of students and educational programs, care is exercised regarding its impact on taxpayers, Cates said. The district is particularly aware of the imminent expiration of some homeowner tax exemptions, he added.

Also, the district is continuing its practice of lowering the levy below its potential by paying off $2 million of debt with a transfer from reserves rather than taxing for it anew. Since 2007, the district already has paid off $26.3 million of debt that way.

“We're very mindful of all the taxpayers in our area, and we prepare our budget with them in mind,” Cates said.