Education, Local News

Nov. 8 referendum aims to help Homewood District 153 meet three goals

The District 153 school board will be able to accomplish three major goals should it win voter approval for the Nov. 8 tax referendum: setting a solid revenue stream, improving aging school buildings and establishing a cash cushion to help keep the district’s finances on an even keel.

Approving the referendum would allow for an increase in the educational rate that has remained stagnant for 30 years. Until recently, state law prohibited the district from raising the rate, so the district turned to borrowing. The proposal calls for the current tax rate of $4.40 per $100 assessed value of property to jump to $5.60. 

The increase would be offset when the overall tax rate drops within the next three years when the district pays off its general obligation bonds.

The district is trying to close a $2 million deficit for its $23 million budget. Voters last approved a referendum in 2016 for a bond sale. That enabled the district to meet its obligations for seven years, but that influx of money is depleting. Without a way to refill the coffers, the district will be forced to make operational cuts, hold off on needed repairs and facilities updates, and continue to borrow to cover expenses.

Cutting expenses

Superintendent Scott McAlister said that by October he will have a “reduction in force” (RIF) list of staff cuts. Salaries are the largest expense in the budget. The district could cut more than 30 of its 180 certified staff. McAlister admitted it would be quite a blow to the district’s academic and extracurricular programs, but it is one way to reduce spending by $2 million.

Or, the district could eliminate 60 of its 75 support personnel. These are people working primarily as teacher aides.

 Or it could eliminate 15 administrators. The schools have six administrators at its schools and the district office has another dozen administrative staff.

The school board could choose to leave staff untouched and cut programming. The first cuts would be extracurriculars – clubs, sports, transportation.  Co-curricular activities of band, choir and orchestra, “which we love,” would have to be one place to look for cost cutting, McAlister said.

“The most likely scenario is a combination of all those things,” he said at a public forum Aug. 15.

“I’ll say this: I do not want to use fearmongering to try to tell our story. This is the reality of our financial situation. We will balance our budget. We’re either going to do it by getting additional revenue or dramatically decreasing our costs. That’s the only way it can happen. We’re required by law to balance our budget.”

Buildings

District 153 has three schools: 

  • Willow School serving prekindergarten, kindergarten, first and second graders. The building was built in 1952, when Harry Truman was president. Changes were made four times over the last 70 years. The latest is the addition of a mobile building that will provide space for interventionists and other student needs. The building needs to expand.
  • Churchill School serving third, fourth and fifth graders, was built in 1966, when Lyndon Baines Johnson was president. It had a major addition in 1968, and a new two-classroom wing is being constructed now. The school is using a mobile classroom for several classes.
  • James Hart School serving sixth, seventh and eighth graders dates to 1957-58, when Dwight Eisenhower was president.  School improvements were made in the 1960s and 1990s. It had a major addition built in 2002 when the school district and the Homewood-Flossmoor Park District partnered on a new gym and cafeteria.

McAlister said each building has its own critical needs. Space is tight, and the maintenance staff is dealing with emergencies. School board president Shelley Marks showed the forum audience a pipe, probably an original dating to 1952, that burst at Willow. The corrosion to the pipe was deep and rust flaked off it as she handled it.

The board decided to borrow $8.2 million earlier this year for building improvements. That, matched with federal government funds, is allowing the district to update its heating/ventilation systems, replace boilers at James Hart and Willow Schools and make roof repairs at all three schools. Additional work is planned for summer 2023. 

District reserves

Emergencies come up, and the district needs to be able to address them.  The Illinois State Board of Education recommends districts have at least six to eight months cash on hand, but District 153 doesn’t have a sound “rainy day” fund. McAlister estimated it has three months of revenue in the bank, and that will be drawn down this fall because Cook County is delaying the August payment of tax money to schools, villages, libraries, parks and other governmental bodies until December or after. 

That delay means District 153 will need to use its three months cash-on-hand to cover payroll and bills. McAlister said the school board is consulting with its financial advisor to find a way to manage expenses without the tax revenue. By selling the $8.2 million in bonds for building improvements, the district’s debt is extended as high as it can go.

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