By BILL DWYER

Tuesday, November 08, 2005

There appears to be light at the end of the tunnel, as well as another possible tunnel ahead for River Forest’s District 90 school district. The board and staff, led by board finance committee chairman Ron Atkins, has been working the last several months to solve a looming budget shortfall. Tonight a "Fiscal Action Team" made up of a cross section of village residents will meet for the sixth and final time to produce a recommendation to the board on dealing with projected budget deficits of $3.8 and $8.3 million in the 2007 and 2008 school years. That course will likely involve a tax hike referendum.

The Fiscal Action Team has been considering an array of options, including drastic program cuts that District 90 board members have characterized as completely transforming the content and character of the school district. More likely will be some belt tightening, including increased user fees, teamed with a tax hike referendum sometime in 2006.

Any tax hike will have to jump through a number of hoops presented by current and proposed state laws. Under current law any rate increase approved by voters is applied over the next four budget years. A 25 cent increase would raise the current revenues the school district receives from a current effective rate of $2.07 per $1,000 of equalized assessed valuation to $2.32, $2.57, $2.82 and $3.07.

The district’s current official tax rate is $2.99 1⁄2 per $1,000. However that rate is progressively degraded by the tax cap law, which limits yearly increases to 5 percent or the Consumer Price Index (CPI), which ever is lower. The CPI has never reached 5 percent during the life of the tax cap law, and usually hovers around 3 to 3 1⁄2 percent.

In the interim, District 90 Business Director Anthony Cozzi said all he and the board can do is work with what is.

"The district is currently preparing projections under the current law, until new legislation passes," he said.

The district is also preparing to be as clear with voters as possible regarding their efforts so far, and regarding any future steps they plan to take. Last Tuesday Atkins reiterated his concerns about the formulation of a focused, effective communication of the school board’s position to the voting public. Noting that the fiscal action team was moving strongly toward a recommendation, Atkins told fellow board members, "I’m wanting to make sure the community understands what went into our deliberations. The factors we’ve had to consider, (and) the (effects of) the legislation."

The fiscal action team’s recommendation will be formally presented to the full school board for consideration at a 7:15 a.m. meeting Nov. 14. The board expects to make a final decision regarding a course of action at its Nov. 29 board meeting. Part of that decision will be whether any tax referendum, if sought, would be on the March 2006 or November, 2006 ballot.

CONTACT; bdwyer@wjinc.com