County schools enjoy good finances, but some struggle

Overall, Lake County schools are financially healthy, but some still face hard times, state records show.

The Illinois State Board of Education's Financial Watch List, released in late March, showed 40 county districts ranked in the two highest categories in 2007, while five are in the lowest two.

The state board reviewed annual financial reports for public school districts from July 1, 2006 through June 30, 2007. It ranked districts in four categories -- with "recognition" and "review" being the best, followed by "early warning" and "watch."

Millburn Elementary District 24 was the only Lake County district in the watch category in 2007. Its ranking fell from financial review in 2006.

Beach Park Elementary District 3, Antioch-Lake Villa Area High School District 117, Emmons Elementary District 33 and Waukegan Unit District 60 are on the early warning list. Beach Park and Waukegan improved from 2006.

District 117 and Big Hollow Elementary District 38 also saw their rankings slip. District 38 dropped from recognition to review, and District 117 from review to early warning.

Thirty school districts received recognition status in 2007, up from 17; ten had a review ranking.

Millburn Superintendent James Menzer said his district has been on and off the watch list at various times over the past 15 years, and blamed dwindling tax dollars for the 2007 ranking.

"We haven't had new revenue come in, and, with our growth leveling off, we fell short on money," he said. "We have one of the smallest tax bases in the county, and we rely on state aid. We had a large growth spurt over the past nine years that helped, but that has dropped off."

Menzer said the district will use short-term tax loans to offset the cash flow problem. Since cash flow is one indicator reviewed by the state for the watch list, it should help the district next year, he added.

"We'll also try and reduce expenditures," he said. "But, we will not take away from achievement or learning. We will not reduce class sizes and will not take away from learning."

The state board has monitored public school district financial performance since 1980, with the goal to inform residents. State school officials indicated nearly 70 percent of Illinois districts achieved recognition status in 2007, and 3 percent were in the financial watch category.

Lake County Superintendent of Schools Roycealee Wood said while most schools are doing well financially, there is still concern over those that are struggling.

"I see a lot of districts having more challenges than ever before," Wood said. "I guess this list shows we have a lot of strong districts, but some are dependent on local taxes way too much."

State legislators need to increase educational funds for districts, she said.

"We have 40 districts that are doing well, but five that are still on the warning or watch list," she said. "We need to get those districts up."