No change to school levy a no-brainer

Geneva School District 304 is responsible to ensure our children receive a quality education at an affordable cost.

The school board, district administrators and teachers have done an admirable job in providing quality education. However, the district has been less successful in keeping education costs affordable.

Over the past five years, property values have fallen more than 30 percent, unemployment has risen to more than 9 percent, and wage rates have been stagnant; yet, school taxes have increased by more than 5 percent per year on average.

In each of those years, the district has increased the tax levy by the maximum amount permitted under the tax cap law.

Due to the regular tax increases and careful stewardship of resources, the district has amassed a $30 million surplus in its general fund. The district’s preliminary budget for 2011-2012 projects a further surplus of more than $4 million. Yet, once again district administrators have recommended the maximum increase permitted.

For 2011, the permitted levy increase is 1.5 percent, and would raise the taxes on a $300,000 home by $70.

The board is evaluating a proposal to use $10 million of the surplus funds to prepay debt. The $10 million would retire $8 million of debt and reduce the annual increase in debt service taxes, thereby saving the owner of a $300,000 house around $900 in taxes over the next 16 years.

By contrast, foregoing the 1.5 percent levy increase would cost the district less than $1 million and save that same homeowner $1,120 over the same period. Foregoing the levy increase provides much greater bang for our bucks, and should be a no-brainer.

Edward Butts

Geneva