River Forest schools need tax hike: advisory committee
School board will decide on referendum, timing
By BILL DWYER
A citizenÕs advisory committee recommended Monday that the River Forest school board ask voters for a 32.5 cent tax levy increase next spring. The committee, known as the Fiscal Action Team, was appointed by the board in September and charged with assessing the districtÕs financial condition, then suggesting ways to deal with projected budget deficits.
The committee reached its decision Wednesday night following what District 90 Finance Committee Chairman Ron Atkins termed "a long but reasonable discussion." Monday morning the school board was formally presented with those recommendations. Board members will now study that recommendation and deliberate on Nov. 29.
The Fiscal Action Team was comprised of a sociological cross section of 20 village residents, including those with children in district schools, children in private schools, childless individuals, senior citizens and others. The group met for between two to four hours the past six weeks, familiarizing itself with the districtÕs finances, and looked at a range of budget scenarios that included everything from deep cuts in the services the schools provide to raising the property tax rate levy anywhere from 20 cents to 45 cents per $100 of assessed valuation.
District Superintendent Marlene Kamm said a consensus had developed two weeks ago regarding two key points, saying, "The consensus was there should not be any programmatic cuts, and the district needs to go to a referendum."
A 32.5 cent increase would bring the districtÕs authorized levy up to $3.32 per $100 of equalized assessed valuation. Due to state-imposed tax cap legislation, annual increases are limited to 5 percent or the increase in the Consumer Price Index.
Under tax caps, the district has been steadily falling below its authorized rate of $2.991Ú2. The actual rate, district officials point out, is currently $2.07. To be effective, the district is looking to take that 32.5 cent increase, if approved by the voters, in each of the next four years. That would bring the actual rate in line with the newly authorized rate of $3.32 at the end of that period. The following year, the authorized levy would again fall behind the actual tax levy rate and continue to do so until the district passes another referendum.
School district officials have been looking over their shoulders throughout the recently concluded process at a proposed new state law that could seriously impact the effectiveness of the referendum. Senate Bill 1682, which is currently under review by the leadership of the Illinois House, would cut the time over which school districts could reap the increased tax rate approved in referenda from four years to three. That in turn would force school boards to increase the amount of rate increase sought in order to recapture diminished revenues.
The bill, sponsored by State Senator Don Harmon (D-39, Oak Park), was introduced last spring to counteract a far more restrictive bill that would have limited school districts to collecting any rate increases for only one year. HarmonÕs bill has two Republican Senate co-sponsors and 18 House sponsors, including Assistant House Minority Leader Timothy R. Schmitz and 13 other Republicans.
No final action was taken on SB 1682 during the recently concluded fall veto session, reportedly due to concerns expressed by House leadership regarding both its complexity and uncertainty about its ramifications on school districts.
Harmon said Friday that while the bill did not pass the House during the recent session, it will once again be considered in January when the legislature reconvenes. Exactly when, though, is uncertain.
"The House is studying it very carefully," said Harmon.
School board President David Gregg said the district will move forward despite the uncertainty.
Harmon said he has discussed concerns regarding limits on the length of term of phase in of any tax levy rate increases with River Forest school officials. He said that the legislature will have to "affirmatively" address the issue of the billÕs effects on any March, 2006 referendums to assure it didnÕt affect referenda currently being planned. He added that he didnÕt believe the bill, which likely wonÕt be passed and signed into law before the March 21 referendum date, would affect those referendums, unless made retroactive. That, he said, wasnÕt likely to happen.
"I donÕt believe we could make it retroactive, nor do I think it would be wise to try," said Harmon.
ThatÕs good news for local school officials, who had little choice but to proceed with their plans based on the assumption that current law would remain in place through the March 21 referendum.
"I think Senator Harmon has an excellent grasp of the financial issues facing schools, and the need for planning," Gregg said Monday.