Home

General Information

About Us


CVC Audit Information Download


Contact Us


Display Advertising


Ad Sizes and Samples


Classified Advertising

Communities

Communities Served


Community Resources

-$- Online Store -$-

Digital Online Subscription


Order A Classified Ad Online


Place Assumed Name Notice


Cook County Legals Printed Here


Kane County Name Change - $85


Place Obituary Notice


Download Sample Paper

Submission of News

Engagement Submittal


Birth Announcements


News & Photos


Sports Scores

Lifestyle Features and Videos

Food and Lifestyle


Lifestyle Videos


Seasonal Widget


Crossword and Sudoku Puzzles


Mug Shot Mania News

Online News and Commentary

The Examiner U-46 News Feed


Cheap Seats 2024 By Rich Trzupek


Cheap Seats 2023 By Rich Trzupek


Cheap Seats 2022 By Rich Trzupek


Guest Seat By Harold Pease, Ph.D.


Cheap Seats 2021 By Rich Trzupek


Cheap Seats 2020


Cheap Seats 2019


Cheap Seats 2018


Cheap Seats 2017


Cheap Seats 2016


Cheap Seats 2015 B


Cheap Seats 2015


Cheap Seats 2014


Cheap Seats 2013


Cheap Seats 2012


Cheap Seats 2011


Cheap Seats 2010


Ramey DUI Video


Representative Randy Ramey pleads guilty to DUI


Bartlett Volunteer Fire Department Street Dance


The Truth about Global Warming


Examiner Editorials and Cheap Seats from the past

Forms and Newsstand Locations

Newsstand Locations


Carriers needed


Legal Newspaper

The Examiner U-46 News Feed

Questions loom above U-46 budget ratification


By Seth Hancock
  The public hearing for the Fiscal Year 2017 budget in School District U-46 will be coming up at the Monday, Sept. 12 Board of Education meeting with a vote expected on Monday, Sept. 26.
  Last year, the board spent a lot of time debating whether or not the FY2016 budget was in deficit, a budget that clearly reflected a deficit of $6.8 million. Board members who voted for that budget (Traci Ellis, Sue Kerr, Veronica Noland and Donna Smith) as well as the administration claimed there was no deficit because the budget used previous debt to fill in the hole.
  The FY2017 budget is in balance with $512.1 million in revenue and $511.4 million in expenditures, so with no deficit budget the discussion could be had on whether or not this budget faces the realities of a state with severe financial problems.
  The proposed budget relies heavily on funds from outside sources (General State Aid and categorical payments from the state as well as federal funds) at 38.1 percent, or $195.3 million, on the revenue side. That is higher than the state average of 33.8 percent, according to the Illinois State Board of Education’s schools report card, but neighboring CUSD300 (20.8 percent) and CUSD303 (10.8 percent) are well below.
  The Examiner offered the entire board a chance to respond to some questions in April on U-46’s reliance on state funds considering the fiscal climate of Illinois. Phil Costello, Cody Holt and Jeanette Ward, who all voted no on the FY2016 budget, were the only ones to respond.
  Holt said at the time that “the state should play a minor role in funding education” which would allow for “more local control and less influence coming from Springfield,” and Costello said “the simple reality is that U-46 currently has a budget with implausible prospects for new public dollars” while the district should seek “alternative education models.” Ward said “I don’t think it would be prudent given Illinois’ financial situation” to expect more funds from the state in the long run.
  The state did approve a stopgap budget over the summer which fully funds state aid compared to the prorated rate in recent years, and U-46 expects nearly $10 million more in categorical funds. But how long can the district rely on the state, and does another increase in expenditures ($3.8 million more than last year) recognize the fiscal realities?
  When the board was given a chance to respond in April, the Illinois’ debt was $147.9 billion according to usdebtclock.org. Only four months later, the debt has risen by $1.1 billion to $149 billion and the state is spending $23 billion more than it’s taking in.
  According to George Mason University’s Mercatus Center’s most recent report ranking states on their fiscal health, Illinois is 47th overall: 49th in long-run solvency, 48th in cash solvency, 46th in trust fund solvency and 41st in budget solvency.
  The report states: “Illinois is reliant on debt financing to cover spending. Liabilities exceed assets by 48 percent, producing a long-term liability per capita of $6,067.”
  Unfunded pension liability in the state is $118.9 billion ($20.5 billion national average), market value of unfunded liability is $289.1 billion ($86.9 billion national average) and total unfunded other postemployment benefits is $34.5 billion ($10.2 billion national average).
  U-46 officials have long shared concerns that the state may shift the burden of the Teachers’ Retirement System (TRS) obligations onto the local governing bodies that negotiate their employee’s salaries and benefits which could result in a huge burden for local taxpayers. According to the Commission on Government Forecasting and Accountability, pension expense, as a share of Illinois’ general revenue fund budget, has increased from 2.9 percent in 1996 to 24.8 percent today.
  TRS is currently in trouble, and it may be worse than it wants to admit. The TRS recently voted to lower its return on investment assumptions from 7.5 percent to 7 percent, and state law requires taxpayers to pick up the slack meaning that drop will cost $421 million in 2017. Some outside sources, like the rating agencies Moody’s Investors Service and Standard and Poor’s Ratings Services, think the assumption should be closer to 3 percent which would then cost taxpayers nearly $4 billion.
  Despite all of this, U-46 administrators, as well as the majority on the board, have apparently maintained a more positive outlook on the fiscal climate as they seek more money from the state through a so-called “equitable funding” formula as well as talking about reducing class sizes. The four board members who voted for the FY2016 budget along with Costello approved, with a 5-2 vote, an expansion of operations to implement full-day kindergarten (FDK) district-wide.
  From the 2012-13 school year to today, district enrollment has been on a steady decline but spending has increased from $453.7 million to the $511.4 million proposed in FY2017. According to the Bureau of Labor Statistics inflation calculator, $453.7 million in 2012 equates to $475.5 million today meaning the proposed spending is 7.5 percent higher than what it would be based on inflation.
  From 2013 to today, U-46 employs 118 more teachers even with the flat or declining enrollment. In the proposed budget’s forecast, spending is expected to increase to $532.1 million in 2019-20 while local sources of revenue, primarily property taxes, are expected to jump from $316.8 million to $325.6 million.
  While overspending may appear to be a problem, that’s not so according to some in the district. This past winter, U-46 CEO Tony Sanders said simply thinking about making cuts was “painful” and Ellis said during the FY2016 budget discussions that successful schools “is all about spending money.” While costs keep rising, U-46’s report card showed only 32 percent of district students meeting or exceeding expectations.
  The Department of Education’s “Digest of Education Statistics” would refute Ellis’ contention as spending on education in the nation has increased over 180 percent and the number of teacher’s employed by nearly 100 percent since 1970, but enrollment and test scores have been flat.
  Noland voted against the FY2014 and FY2015 budgets before voting for the FY2016 budget, but during the FY2015 discussion she said “we’ve never talked about operational savings.” She has, however, long pushed for lower class sizes which would mean a need for more teachers.
  A 2013 study by Harvard researchers Will Dobbie and Roland G. Fryer showed that school effectiveness is not correlated with smaller class sizes nor is increased per pupil spending. U-46’s own data shows that its highest achieving schools have higher class sizes, most noticeably at the elementary level where the top 10 schools have a 25.3-1 student to teacher ratio compared to 24-1 for the bottom 10.
  Considering all of these facts, some questions loom as the public and board members are poised to address the latest budget on Sept. 12:
  As the state’s fiscal health continues to worsen, how long can the district continue to rely so heavily on Illinois to fund its budget?
  Instead of lobbying for “equitable funding” from the state, why doesn’t the district lobby for less state and federal interference in order to allow U-46 to control its costs? Holt has long promoted Gov. Bruce Rauner’s turnaround agenda because he feels it does just that, but whether the district agrees or not why not lobby for such reforms rather than for more money from a state that is broke?
  How does the district justify its complaint that the state has not adequately funded it considering GSA funds to U-46 have nearly doubled from $62.2 million in FY2013 to the projected $119.4 million? Whether adequately funded or not, how can the district expect to receive more money from the state?
  Although staffing standards were already agreed upon for this proposed budget, considering the district’s own numbers and research would it be prudent to at least discuss, increasing class sizes to lower costs?
  When contract negotiations occur, why not negotiate for merit-based pay rather than automatic pay increases based on seniority which could allow the district to control costs?
  Ward has previously posited the idea of school choice within U-46’s schools which was ignored. Why not discuss such ideas, and why not start thinking outside of the box?
  If, and likely more aptly when, the state is faced with making big cuts, will U-46 be prepared? 

.

.




©2024 Examiner Publications, Inc.

Website Powered by Web Construction Set