Diamond Lake referendum's biggest battle might be with confusion

The question, say proponents of a "tax swap" to fund programs in Diamond Lake Elementary District 76, is actually simple.

But voters looking at the Nov. 4 ballot will have to wade through five paragraphs of explanation. And, unless they have an acumen for property tax financing, the district's intent is hard to decipher and easily misinterpreted, they say.

"Isn't it very confusing?" asked Jeff Peterson, a parent with three kids in district schools, who has volunteered to help explain the matter to the public. "Our biggest challenge is not only to let people know there's a referendum but what the referendum is about."

What voters will see is a request to allow the district to increase the tax rate to raise about $1.4 million more than it would under the current rate. That's a boost of $294 for the owner of a home with a market value of $200,000 on the 2008 tax bill collected next year.

Tax bills are likely to remain the same under any scenario. If voters approve an increase in the education fund rate, the district says the bond and interest rate will drop a corresponding amount. Saying no doesn't guarantee a decrease in tax bills, however. The district could restructure bonds that haven't been retired to accelerate payments. Because more money would be needed to meet the debt, the bond rate would stay the same and so would tax bills.

The difference between 'yes' and 'no', according to the district, is the latter would require cuts in teachers, programs and other areas.

However, all that information is not included in the wording of the ballot question because voter approval is required for a tax increase, but not a tax decrease.

"That's a state mandate. Every school district that has done one of these zero tax increases has had the same challenges - it obviously reads like a tax increase," said Ron Carlson, who recently resigned from the District 76 school board after nearly 10 years.

"School finance today is rocket science," he joked.

No organized opposition to the question has surfaced.

District 76 is making its case at a tough time. Not only does a general election draw a larger turnout than other elections but with a choice for U.S. president on the ballot, a crush of voters is expected.

That can work against a small entity like District 76 trying to get a specific request approved.

The decision was made to proceed in November, rather than April, to avoid having to run a deficit and make cuts for an entire fiscal year, Carlson said.

Several evening coffees are planned in coming weeks to provide information on the district's financial status and the reason a referendum needs approval. Call (847) 918-8746 for information.

In plain terms, the district for the first time in 12 years faces a deficit in its education fund, which pays for teachers, programs and other day-to-day expenses.

Investments in new programs and teachers, math and science specialists, technology and other areas, as well as a boost in teacher pay and special education spending have resulted in a deficit that is expected to increase.

The district has been spending down budget surpluses to fund those measures.

As a result, achievement has increased significantly for both white and Hispanic students and the gap between them has narrowed, supporters say.

Without the tax swap, the district says it will have to increase class sizes, cut music and art positions at two schools, eliminate more than two dozen extracurricular activities and all summer school programs and eliminate other positions.