Big Hollow puts tax hike on ballot
Big Hollow voters will decide at the Feb. 5 polls whether the district should take out a $10 million loan and raise tax rates by 54 cents to put the district back in the black.
The board decided to choose a working cash bond to try to inflate the amount of money in the district coffers.
That money is considered a temporary loan, and the district will go back out to voters at some point in the next five years.
The increase would mean the owner of a $100,000 home would pay approximately $180 additionally to the district annually.
Officials said, if the request is approved, programs would be reinstated and class sizes would decease. However, if the request isn't approved by voters Feb. 5, current cuts would remain in place, class sizes would continue to increase and further cuts could be ahead.
District officials had four options to choose from: an operational tax rate increase, a working cash bond, continue taking out short-term, tax anticipation loan, or using the sale of the Route 12 property for one year before slipping further in debt again.
The board members chose the working cash bond because they did not want to lose state aid.
This is the fifth time since 2002 the district is seeking a tax rate increase to help pay for schooling. The four previous times, the district lost handily.
Superintendent Ron Pazanin said the district needs money or programs will have to start being cut.
"School is an opportunity for students, and we are having a problem providing the opportunities for students they need to learn," he said. "Programs cost money, lowering class sizes cost money. These are resources we don't have right now."
Big Hollow has the largest class sizes in Lake County at 28 students per class, with the largest classes being in fourth grade, Pazanin said.
If the referendum measure doesn't pass, the districts financial outlook seems bleak. Projections show the district could be $5.2 million in debt and facing class sizes in the 40s by 2013. The district has a hiring freeze in place to curtail spending. However, class sizes are averaging in the mid-30s. Board officials said they would like to see class sizes at about 23 students per class.
The district has warned residents since July that a question would be on the Feb. 5 ballot.
The district cut art, music and computer classes, instituted a hiring freeze and made several other cuts to offset the growing debt.
The district has had to borrow against anticipated tax money to meet cash concerns. It borrowed $1.4 million in 2005, $1.8 million in 2006 and $2.4 million in 2007. Officials expect to borrow about $3 million in 2008 to pay bills.
The vote came after a candlelight vigil was held at the school by parents and students to rally the community and support teachers and students.
Officials said the rally wasn't designed to drum up support for the referendum request, but most speakers asked people to bring back programs that were cut.
"There are 34 people in my class, there is a lot of talking and it's hard for me to concentrate," said fourth-grader Ryan Ralston. "I miss art and music. Things have changed here a lot."