Huntley schools look to settle up

Huntley District 158 is close to resolving an issue that otherwise could cost the district $1 million each year.

District 158 has submitted a new limiting rate to the Illinois State Board of Education. The rate is a factor used in determining the amount of state aid the district receives.

If the state board accepts the new rate, District 158 will receive $1 million more in annual state aid than it otherwise would have gotten.

If the new rate is rejected, the state would effectively penalize the district for keeping its 2004 promise to institute its referendum-approved 55-cent tax increase only once. The law at that time allowed the district to add the 55 cents each year for up to five years, significantly raising the cost to taxpayers.

In 2006, the tax cap law was revised, and all tax increases now must be instituted the way District 158 did it in 2004 -- applying them only once.

Under the old tax cap, however, the limiting rate was calculated with the increases over five years in mind, and District 158's one-year approach left it with a lower limiting rate.

The state board told the district it needed to have its rate recertified. McHenry County Clerk Kathy Schultz has sent the recertified rate to the state, and the state board is reviewing the calculation.

"No decision has been made at this time," said Matt Vanover, spokesman for the state board. "It's under review."

Meanwhile, District 158 has a little more than a month left to approve its budget for the 2008 fiscal year. The preliminary budget includes the additional $1æmillion the district would receive if the state accepts the new rate.

"In our budget calculations, I have always assumed we would get the money because that is the law," said Tony Quagliano, District 158 board vice president and chairman of its finance committee.

If the state doesn't accept the new rate, District 158 will get $1 million less this year than it should be entitled to -- and every year after for the foreseeable future. That's because the state aid calculation includes the previous year's state payment.

District 158 won't give up the money without a fight.

"If they don't rule in our favor, we'll take immediate legal action against them," Quagliano said.

But Quagliano said he hopes it won't come to that.