By Elaine Cannell, Editor
“I just want to hear your explanation for increasing our taxes once again,” Sugar Grove resident Toby Cook said at the Dec. 13 board meeting.
The board was about vote on the 2011 district tax levy, which they increased by 5.46 percent next year, and Keith wasn’t the only one who was concerned.
Despite the 7-0 vote, board member Deborah Grant said that she was unsure about the levy.
“I’m struggling [with the vote] because I’m listening to the community,” Grant said. “I will approve it, but it does not address the deficit. [Our district] is in serious trouble.”
And the district is in trouble. At the end of this school year, even with the cuts that have already been made, there will still be a large deficit, which will have to be made up in other ways in future years. Dr. Julie-Ann Fuchs, assistant superintendant, said that the problem is that there isn’t really any other place from which to take more funds, since 77 percent of the budget comes from taxpayer dollars.
According to Fuchs, and the auditor for the Kaneland school district Jim Mathieson, the school has very little choice for other sources of extra revenue.
“As a board, you have been conservative,” Mathieson said.
He said that deficits create a vicious circle of problems, and attacking the problems each year, the way that the Kaneland board has, is much better than trying to dig out when it’s already too late.
“Where else is there to cut money? The only other place [is wages.] And teachers have families to care for as well,” Mathieson said.
Fuchs agreed that the board had been conservative.
“Because we have such limited control over our revenues, and the tax levy is such an important revenue source for the district, it’s important to collect as much money as is legally allowed under the tax cap. If the district didn’t levy for the maximum amount, [we] would never be able to recover the moneys in future years.”
With the economy still struggling, Cook said raising taxes isn’t the right solution.
“Over 147 homes [in the area] are being foreclosed,” Cook said. “Our houses are losing value quickly, and no one can afford taxes being raised right now.”
What does the tax increase mean? Estimates show that the owner of a $300,000 house, with an assessed value of $100,000, will pay approximately $200 more in taxes. A 2009 tax bill for $5,000 will increase to $5,200 per year.According to board members, the funding problems and deficit can be largely traced to the state of Illinois, which provides Kaneland five percent of its yearly revenue.
“The funding formula for schools in Illinois is broken. But because Kaneland depends on local taxpayers to support the schools, the district is thankful for this dependable and reliable source of revenue,” Fuchs said.
Fuchs acknowledged there will have to be further cuts made in the budget for the upcoming school district to balance the budget.
“It’s too soon to tell [what specifically will be cut]. It will be discussed more in the spring.”