Big Hollow asking for help

Big Hollow Elementary District 38 will take $2.35 million in loans to help offset cash woes, officials said.

School board vice-president Jan Carsella said the money was needed to help bridge the gap between what the district takes in and how much it spends in the 2007-08 school year.

The loans are borrowed against anticipated tax revenue collected by the state in June. The district repays the loan to lenders when it receives its tax money, usually in July.

"We didn't bring in enough revenue to cover our expenses across the board," Carsella said. "It takes care of that shortfall."

This is the fourth consecutive year District 38 has taken loans to help get through the school year. Loans amounted to $1.4 million in 2005, $1.8 million in 2006, and $2.4 million in 2007.

Carsella said the district had expected to seek $3 million in loans this year, but cuts made in July 2007 saved about $650,000.

"This year's program cuts and hiring freeze reduced the operating deficit," she said. "Therefore, it reduced the amount of (loans)."

District officials voted to cut art and music for the entire student population, and computer instruction for kindergarten and grades six through eight.

Also, the district instituted a teacher hiring freeze, which caused class sizes to rise to about 28.2 students per class.

To address its funding woes, District 38 has a referendum question on the Feb. 5 ballot. Voters are asked to approve a 54-cent property tax-rate increase to allow the district to obtain a $10 million working cash bond.

If approved by voters in portions of Fox Lake, Ingleside, Lakemoor, Volo and Round Lake, the owner of a $280,000 home would see their property tax bill rise about $380 in the first year.

The money would be used to boost the district's education fund as needed.

Also in the works is a developer's purchase of the vacant school property at Route 12 and Big Hollow Road for a retail project.

If everything goes according to plan, the district would receive $5 million from that deal. Board officials are trying to decide what to do with that money.