Facing Financial Woes, School District 31 Weighs Its Options

Faced with declining revenues and rising costs, members of the board of must choose between cutting expenditures, going into debt or seeking voter approval to raise property taxes.

After a referendum to raise property taxes , the school district . That included and not replacing some positions when teachers retired. 

But Superintendent Alexandra Nicholson has said cuts are not a long-term solution.

“Ultimately, it devastates the district,” she told members of the school board .

The district will see its budget go into the red within the next several years if the board doesn’t take steps to raise funds or cut expenditures, according to Nicholson. That’s partly because District 31 faces rising costs to educate an increasing number of students for whom English is not a first language and partly because it must pay for state-mandated improvements to its aging school buildings.

Funds are also tight because the district expects to see huge reductions in its property tax revenues due to several appeals from its biggest taxpayer, . The district is currently  from Allstate for the tax years 2004 - 2006, of which District 31’s share would be roughly $2.4 million. Another appeal for the tax years 2007- 2009 is on its way, Nicholson said.

In order to raise funds and make up for lost revenue, the district can either issue bonds or seek voter approval for a second referendum to raise property taxes, according to Nicholson.

But because the district , issuing more could drive it far too deep into debt, administrators say.

“You’re getting yourself into one of those credit card cycles that you could never get out of as an individual,” financial consultant Craig Schilling told board members at the October meeting. “It’s not a long-term solution.” 

Superintendent Nicholson has said she would support another referendum. Asked by one parent at the October board meeting what her feeling on another referendum was, Nicholson said she believed it was worth a shot.

“I can’t ethically, morally, go into $400,000 worth of cuts after doing $1.6 million and take more away from these kids without at least going out there and trying,” she told an audience member at the October meeting. 

Board members get the chance to weigh in on the option of a referendum themselves this Thursday, Dec. 8, during the school board’s regular meeting at 7 p.m. at Learning Center. 

Want to read more about District 31’s financial situation? Follow these links for more coverage from Patch:

Oct. 20, 2011: Even the wealthiest local school districts must deal with the effects of unemployment and foreclosure on children.

Oct. 17, 2011: Superintendent says options include a second bond issue, more cuts or a $1.5 million referendum.

Sept. 26, 2011: District 31 school board passes cash-strapped budget as tax appeals weigh heavy on plans.

Aug. 9, 2011: D. 31 Tax Hike Defeat Incites Parents To Raise $100,000

April 15, 2011: At the district's first meeting since the referendum failed, parents, board members and administrators considered how to move forward.

April 5, 2011: According to unofficial results from the County Clerk's office, a referendum to raise property taxes in District 31 failed by a margin of more than 500 votes.

April 1, 2011: District 31 Superintendent, Northfield Township Assessor and Cook County Township Assessors' Association President share a joint statement with Patch.

March 29, 2011: In response to assessors, District 31 breaks down the effect its proposed tax rate increase would have on voters if passed.

March 23, 2011: According to a group of Cook County assessors, ballot calculations of District 31's proposed tax increase do not accurately reflect the impact if the measure passes. 

March 3, 2011: Audience told that every 'bang for the buck' has been squeezed out at the current spending level.

Feb. 25, 2011: If approved, a referendum would generate an additional $2.2 million for the district, which is in financial trouble.

Nov. 15, 2010: Districts 225 and 31 may have to give back $3.3. million each from already tight budgets if Allstate wins appeal in Cook County Circuit Court.

Oct. 9, 2010: Board passes measure to shore up cash flow as it faces delayed revenues, $3.3 million tax appeal.