District 59 hears concern about possibly having to borrow
Tensions flared at an Elk Grove Township Elementary District 59 meeting Tuesday as school board members, who might borrow millions to temporarily stabilize the budget, faced pushback from residents upset about a possible tax increase and the district's financial planning.
The school district is on track to run a $100 million deficit over the next five years to pay for programs and jobs added the past several years. The programs are intended to help the most vulnerable children in the district, which has more than half of its students living in poverty.
Although the district has reserves of $120 million - enough to operate for an entire year - projections show the district will run into problems within the next couple of years, if the district sticks to its own policy of keeping at least 60 percent of its operating budget in reserve.
Some school board members faulted administrators for the suddenly bleak financial outlook.
"There was no indication to the board we would be in trouble money-wise," school board member Mardell Schumacher said. "There are many, many, many places where we could have saved money and we didn't."
To soften the blow, the district is considering a $15 million bond issue to help pay for ongoing construction projects - namely a $17.1 million administration building in Elk Grove Village. The bonds would stabilize the budget in the short term but cost the average resident with a $250,000 home an extra $15 per year.
Superintendent Art Fessler said the factors beyond the district's control contributed to the changing financial outlook, including increased transportation costs, a loss in federal money and uncertainty with the state funding. Gov. Bruce Rauner on Tuesday vetoed parted of a school funding measure, a move that could mean no districts get state money before classes begin.
"There are a lot of other issues influencing us," Fessler said. "It's not just ignorance on our part."
Some residents at the meeting supported the bond issue, arguing the relatively small tax increase would be worth financial stability in the district. Others contended taxes have already been increasing over the past five years with no break for residents.
"Each year, a little bit more we're bailing out District 59," Elk Grove Village resident Ron Mattey said.
Elk Grove Village resident Kristina Unzicker said the financial decisions will affect whether she stays in the district when her two young children start school.
"I just think the spending excessively in some ways that seem irresponsible doesn't give us confidence in the district long term," she said.
School board members vowed to balance the budget, each agreeing the current spending is not sustainable.
"We don't like what we're seeing at the end of five years, so we're taking action now," school board member Sharon Roberts said.