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From: Don Robinson
Category: General Discussion
Date: 22 Oct 2002
Time: 23:15:05 -0400
Remote Name: 12.251.130.11
While Mr. McIntyre and Mr. Rubin exchange views about the specifics of Savannah Green, I would like to provide a lunchtime recap of the school district's financial position.
District 428 has continued to spend conservatively. Its pupil:administrator ratio is higher than state average while both its instructional expenditures per pupil and operating expenditures per pupil are lower than state averages. Despite moderate spending, District 428 is like every other school district subject to tax caps. All school districts subject to tax caps face eventual insolvency unless the state changes the way it funds schools. This will occur because low inflation in a tax cap environment limits revenues despite staffing expenditures, the bulk of any school district's expenditures, continuing to increase at a higher rate. The only variables are how long each district can survive and whether education fund referendums can be passed to defer the inevitable. An increasing number of districts in our state -- already a majority -- now operate with deficit budgets. When speaking before our city council earlier this year I pointed out that deficit-spending list even included school districts such as Salt Creek 48, despite that district including Oakbrook Terrace shopping mall within its boundaries. NIU is similar to Oakbrook mall in that it represents a vast nonresidential property. Also, NIU brings a large workforce with their school-aged children to the community; however, DeKalb schools does not receive any property tax revenue from NIU.
In the 80's, business joked about the savings & loan industry "making it up on volume" when they lost money on every account. Let's set aside talk about residential growth's benefits to local schools as DeKalb schools concludes what may be its last budget year without an operating deficit. DeKalb schools are not going to "make it up on volume." Like other districts, DeKalb has two hopes. First, that the community experiences a greater proportion of nonresidential development as it did in the 90's, providing the district incremental tax revenue without the incremental expense (students). The second hope is that it can outlast its neighbors. As I said before the city council, it's like the joke about the campers and the bear. You don't have to outrun the bear; you only have to outrun the other guy. I am hopeful that DeKalb can outlast districts to the east that have operated under tax caps longer. I believe the state legislature will eventually be forced to revise how it funds K-12 education once the statewide financial meltdown currently underway becomes obvious and inescapable to everyone.
DeKalb schools would benefit from zero growth until the state reforms education funding. However, that is unrealistic. What the district can hope for, and ask for, is continuing cooperation from the city in managing and controlling growth. We also believe that "mega-developments" such as S.G. and others being discussed in city hall should be subject to pre-annexation agreements that the school district participates in.
Finally, for a resource for local school finance, please see State, Local and Federal Financing for Illinois Public Schools, 2000-2001. It can be viewed or downloaded at http://www.isbe.net/sfms/slf01/slf.pdf
Regards, Don Robinson president, DeKalb school board