I recently spoke with District 150 interim comptroller Brock Butts about the $38,000,000 in working cash bonds the District wants to issue. He said the plan is to issue 15-year bonds, but hopefully pay them off early — possibly as quickly as five years. The bonds would be paid for by putting an additional levy on property taxes. Property taxes within the District would increase 25¢ per $100 of equalized assessed valuation (EAV). That means the owner of a $150,000 house would pay an additional $125 in property taxes.
Public notice of the District’s intent to issue the bonds was given in the Journal Star on April 7. Voters have 30 days from that date to either do nothing, in which case the district will go forward with the bond issuance in May, or gather at least 6,355 signatures to force the bond issuance to a binding referendum. The soonest a vote could be taken is February 2010, unless a special election were held earlier.
I asked what would happen if the voters did, in fact, succeed in petitioning for a referendum. Butts said that unless the District receives categorical funding from the State, the District will run out of money mid-May. At that point, the district could borrow money under something called “teacher’s orders” to pay certified staff salaries, but that’s about all they could do until October when they could issue tax anticipation warrants again. In short, it would keep them in a perpetual cash flow crisis.
Some explanation may be helpful here. Tax anticipation warrants are kind of like payday loans. As the name implies, money is borrowed in anticipation of receiving future tax revenue. The loan is paid off when the future tax revenue is collected. Basically, they’re using next year’s tax money to pay this year’s bills, just like you can use next month’s paycheck to pay this month’s bills if you get a payday loan. Companies like Investors Choice Lending do this and the District has been doing this for years, allowing people to try Investors Choice Lending.
That comes with a cost: interest. Tax anticipation warrants don’t raise your property tax bill, so guess from where the money for interest comes. According to Dr. Butts, it comes out of the education fund. Not good.
This is why the comptroller (and others) have recommended that the district issue $38 million in working cash fund bonds. It will give the district money to build up their reserves so they no longer have to issue tax anticipation warrants. That, coupled with efforts to balance the budget, will get the District back on sound financial footing. While it will cost a little extra in property taxes now, it will save money in the long run. It will also keep the interest costs from coming out of the education fund. Once the working cash fund bonds are paid off, property taxes will be abated.
This plan sounds reasonable and fiscally responsible to me, and I can support it. In fact, I’ve decided I’m not going to be a part of any effort to force this issue to a referendum.
However, I still have one really big reservation about this plan, and that is my lack of confidence in the school administration’s commitment to stick to it. As has been stated before, Blaine-Sumner was closed, then remodeled for use as offices, squandering the savings there. White School was closed and sold, but the Social Security Administration building was acquired and remodeled for more than the sale price of White. More squandered savings. And need we mention the money wasted on multiple superintendents and other questionable administrative/consultant positions?
What assurance can the District 150 Board of Education give the citizens of Peoria that they will not squander the savings of the recently-decided school closures, or the additional revenue from working cash fund bonds? That’s not a rhetorical question; I really think the constituents of District 150 deserve an answer.
“Once the working cash fund bonds are paid off, property taxes will be abated.”
I thought the general rule was that taxes were never ever ever abated.
What assurance can the District 150 Board of Education give the citizens of Peoria that they will not squander the savings of the recently-decided school closures, or the additional revenue from working cash fund bonds? Bbbwwaaaaaaaaahahaha
Sorry, that was immature. You mean an assurance that we could trust? None.
25 cents here, 25 cents there…. no wonder people are heading east.
But you can always come back and visit the museum.
C.J. – this was a great piece. It really helped me better understand matters. Now that the Board has determined that schools will be closed, I hope the efforts to reduce costs do not end there.
I found the “warehousing” piece to be inflammatory and off base, however, the stat showing the District’s administrative costs to be higher than the State average is telling. Citizens need to continue to push for reduction in administrative staff. If Board members want to truly demonstrate they are fair minded, than they will not continually ask students, parents, and teachers to make sacrifices without asking administration to do the same. If the Board honestly believes that there is so much work that administrative personnel cannot be eliminated than a tiered percentage reduction in salaries is in order. Upper management 15%, lower administration 5% to 10%.
Is there any chance of this ‘raise in property tax’ going to a referendum?
Frustrated,
Other than my posts [and C.J.’s], yours was the most intelligent thing I’ve read all day…….. Sorry Paul [and diane].
I agree with “Frustrated” … does 150 really NEED 3 or 4 administrators?
CJ – The Board, as well as he Superintendent we hire to replace Mr. Hinton, should all be held accountable for restoring the District to financial solvency. Last night was an important first step. Now a “real” plan can be created. We are fortunate to have Dr. Butts and Dr. Durflinger helping us as well, and along with Erik Bush, each has alluded to a three to five year plan to make the progress we need. That is also the time frame I mentioned as it relates to our facilities modifications and curriculum realignment (vocational, alternative, charter(?) schools, etc.). Productively using a period of contraction to begin planning for a brighter future is my goal. I can only apologize for the hardship that this change and process will bring. Also, I will get you a copy of the report on Out-of -School factors I mentioned last night also. Very insightful. To be successful, we have to address a multitude of factors beyond the school. Govenor Quinn is beginning part of the need with a graduated income tax and higher exemptions for lower income thresholds.
Are there petitions to sign? What happened to Diane’s needing two groups of 25? I thought that referred to people to gather signatures.
What assurance can the District 150 Board of Education give the citizens of Peoria that they will not squander the savings of the recently-decided school closures, or the additional revenue from working cash fund bonds?
IMHO
NONE.
There is a little irony in the critics who bemoan a lack of planning, while also calling for a cut in the staffing that facilitates that end. There seems to be a lack of understanding on the state and federal reporting mandates and the amount of the districts resources (time,effort,and energy) that they consume. Should we still expect more – absolutely! The Board continues to actively challenge Mr. Hinton on the need for more adminstrative cuts and/or efficiencies. A number of us are also calling for a re-evaluation of Edison and other “programs” that have been brought up. Now that the Board has given the directives, input will be solicited, collaboration will be needed, and a true plan can be formulated.
Jim – I supported the closing of schools in the hopes that it will allow, as you stated, the District to finanically regroup and to refocus its curriculum and programs to better serve its students. However, some of the “contraction” you speak of must come from Administration. Please keep working on this.
I am thankful that Mr. Butts is onboard to help the District work through its financial issues. I would urge the Board to allow this interim leader to stay on for some time to help stablize the District and for the Board to take extra time and care to find a permanent replacement for the Controller position.
O.k. regarding Administration. Maybe I should come at this from a different angle. As an outsider, I am unable to determine the appropriate number of administrative staff needed for the planning and execution of new and current programs, however, I am able to gather an impression of staff competence and in this case, I am not referring to Mr. Hinton. I would ask the Board to not only question the number of management employees but their individual performances and contributions to determine if the District has the right players in place for these important new initiatives on the horizon. Part of creating community support and restoring confident has to be demonstration by the Board that they are “mixing it up a bit” by removing ineffective personnel.
Jim, just a technicality, I guess–but last night’s vote about closing a high school confused me. Before the vote, you stated that you wanted to keep all four schools open but reconfigure them into academies; Wolfmeyer stated that she would not accept any plan that didn’t include a vocational and/or an alternative school; I believe Parker also had misgivings about closing a high school, and, of course, Martha objected.
However, you all voted to close a high school. Can “closing a high school” somehow be interpreted to mean “keep them all open but change them or close one and add an alternative school”? I thought “closing” meant “closing.” Please explain how the administration could be expected to be working on one of your plans, when you all, excluding Martha, gave unequivocal permission to close a high school.
I have so many thoughts that my mind is in ADHD mode. First, I find it interesting the district has to bring in two “small town” ex-superintendents (though I like and respect both) but our own Mr. Hinton could not figure things out on his own. What does this tell people about Hinton? It tells me he is not qualified to be running the district. Second of all, what about Hinton’s other consultants, they are still working for the district, use the grant money for positions “closer” to children. Finally, I have to comment about the district paying Children’s Home for children that are sent there for schooling. The director of SPED needs to be held accountable for her money wasting decisions. I was thrilled to hear Martha Ross question these expenses.
I say lets start getting those signatures needed to stop Hinton raising our taxes. He does not even live in Peoria!! Just tell me when and where to meet so we can make a plan to get the needed signatures.
Frustrated – We hire the Superintendent. We have dual reporting with attorney, controller/treasurer, and internal auditor. Otherwise, we are counseled to maintain a “balcony” perspective. 🙂 Sharon – In my opinion, closing means one HS will not be in existence, but the facility might find productive, cost-effective, alternative uses. If the Board elects to develop choice, I think that we begin planning for a medical/math/science (charter?) academy/ educational pathway that might come on-line in a couple of years, while we also immediately begin on the alternative and vocational learning environments – (one of which might “temporarily be housed in the vacated HS?). Should Roosevelt go k-8 and move all performing arts (HS too?) into a new facility if the state construction grant gets funded? Lots of possibilities. These are just some of my thoughts and why I look forward to seeing others come forward.
Jim – I am familiar with the scope of authority of the Board. The Board can exercise influence through its feedback and evaulation of the Superintendent.
Jim, I guess I understand, but the vote was to close a high school; it didn’t say anything about finding another use for the building. I thought the whole reason for closing a high school was to eliminate a facility and faculty–or is it just to eliminate faculty? Doesn’t that change the “savings” projections? For instance, the assumption in closing Kingman and Tyng seems to be that the facility will not be used (hopefully, sold), so why isn’t the assumption the same for the high school? In other words, when the figures are plugged into the budget program, will closing the high school building be considered as a savings?
Sorry, Jim, dumb question. Of course, no one has suggested that the high school facility would be boarded up. And I guess you can vote to close a high school, but still use the closed building for a vocational or alternative school–however, that would destroy any savings realized from closing a high school, wouldn’t it? However, I believe that changing one to an alternative high school would pay great dividends for the district.
“The Board continues to actively challenge Mr. Hinton on the need for more adminstrative cuts and/or efficiencies.”
And? Where are the cuts you have gotten from your employee that you hired? Or has he thumbed his nose at you and told you to go take a flying leap at a rolling donut?
I don’t consider closing schools, firing hourly workers, reducing education services as “administrative costs”. I am thinking of useless redundant executive positions. (For example, retired administrators taking another bite of the apple collecting additional salary or salaries)
You know, if I were retired with a pension of 70 or 80k, you might expect me to be willing to volunteer my services… JUST AN IDEA. After all, your pension is as much as working people in this country HOPE TO MAKE anyway.
I believe Jim said these retired consultants would work for the district without being paid. Well why aren’t they then? Again, having to have all of these consultants tells me Hinton is not qualified to head up the district. I also find him to be rude, especially to Martha Ross. It reveals he does not like to be questioned. He should be giving out information, the board members should not have to call him and ask for it.
Serenity: I hope everyone heard the exchange between Martha and Ken. The audience roared–great entertainment. Audience speakers had earlier complained that Kingman teachers and parents didn’t know what schools the Kingman students would be attending next year–therefore, how could they vote to close Kingman when there was no plan. Later, Ken stated that the board members had been given that information. Martha spoke up to say that she hadn’t been told. Ken responded that he had told the board members that had called him to ask. Yes, I agree; Ken is very rude to all board members when he disagrees with them. He talks down to them–as though he’s talking to 3rd graders.
Check out the story on high school dropouts in the print edition of the PJStar today.
Smaller schools in some places have cut the drop out rate. Now Peoria is doing the opposite by closing a high school. And we, the taxpayers, still have to pay MORE.
More for less, unless you consider it amusing entertainment to watch Peoria circle the drain due to its school district.
Elaine: District 150 only uses research to support their decisions. Right now they will be ignoring research supporting smaller schools. No, we shouldn’t find the board meetings to be entertainment. However, it was entertaining and even heartwarming to hear Martha stand up to Ken.
It would be even more heartwarming if the rest of the school board would stand up to Ken. Linda Butler commented this week that they really do have heated discussions – the public just doesn’t see or hear that – then she and the rest of the B of E lays down like a puppy and votes for whatever Ken Hinton puts out there. It really come off on TV that ken Hinton has either drugged or hypnotized most of the board.
Martha appeared to be unprepared for the meetings does she even read the package. Stowell had to bring her up to speed.
Even with all changes underway, schools, libraries, museums, Visitors Center, expanded Civic Center, new hotel downtown, expanded zoo, new $36,000,000 Belwood, lead abatement, etc; will these “changes” make Peoria a better draw for families to locate? Few of these “projects” will expand the property tax base so ever increasing taxes are going to stop growth in the city. Sooner or later.
Count on it.
District 150 (just a few years ago) charged $150 (I think) per summer school course. I just learned that at some point tuition was reduced to $30. Summer School expenses were once was paid for by tuition, but now the cost for summer school is borne by the Education Fund. Of course, teachers’ salaries are blamed for the shortage in Education Fund money. I believe that stupid decisions like reducing summer school tuition (and Edison) are a major cause of the financial problems. In light of the money just borrowed by 150—to be paid for by property owners—why should taxpayers bear the cost of summer school when they’ve already paid for students to take these courses the first time. Shouldn’t the second time around be at student and parent expense?
I don’t know about that, Sharon… if the teachers didn’t teach them the first time, maybe it should come out of the teacher’s salary.
Kcdad: I will assume you are joking, right? Maybe you’re just saying what I would expect you to say. But I didn’t see a smiley face. No, I guess you do adhere to schools without failure or believe that students have no accountability for their own failures–and successes. If that works in your teaching environment, then I can’t argue with you. When you or your children went to school and passed, etc., did you give the credit to the teacher–and took none for yourself or for your children? I believe that you have stated that your own students grade themselves–but could they pass a test on the “required” material? In other words, are you personally ever held accountable for what you teach?
I am mostly kidding…. (I don’t know how to do the smilies)
I give them the assessment for the department BEFORE the final. Out of about 90 kids this spring only one didn’t pass the assessment tool. That particular student missed EVERY question , so I presume they intentionally did so.
Why should the parents pay for the failure of school system to meet their own self created standards? The parents certainly had nothing to do with it. (Maybe unfortunately so)
Held responsible? By whom? There is no one on this planet who cares more about what I teach and how I teach it than myself.
Smiley face ….. : ) if you put both symbols side – by – side, you will get a smiley face :)!
or not
Martha asks more pertinent questions addressing the concerns of our children. For anyone to put her down and state that she has to rely on any other board member is being fed incorrect information. I agree that if Linda Butler admits to heated discussions, the her opinions should be expressed in public. I really took exception to the Superintendent’s rude comments to Martha. I do not think that school board members who called should receive information by phone. It should be in the board packet in writing. I think you would be hard pressed to find a precedent for deplorable behavior from any other superintendent. And exactly how many board members called. We do not know! The president of the board owes it to all board members to be equally informed. Once again if the superintendent shows partiality the president can not be exclusive and not inclusive. Kudos to Martha for standing up to the superintendent in public. If I were a school board member and received this information, I would call all other board members to assure that we were on a level playing field. Oops, this board wants to have one ups on other board members.
Sharon –
Sharon, I agree. I think students should pay for summer school, not the taxpayer.
Another nickle and dime issue I could never understand, is why District 150 rents their facilities out. My impression is that this costs the District financially. That might have been the right thing to do years ago before finances got so tight. I thought there was an agenda item recently about the District’s rental policy but with all the other commotion, I can’t recall specifically. All the little things add up. In the end, all these savings may not alter the fact that a school needs to be closed but, the District showing an effort to save through every avenue goes a long way towards good will.
I have filed a FOIA request (Yes, Jim, wasting district money again) to find out when the change in tuition occurred. Actually, Jim, since I’ve paid over $150 for FOIA requests, I probably helped pay several days’ salary for a clerical person.
This change of summer school tuition wasn’t years ago. I last taught summer school the summer after Royster’s first year. She told those of us that had taught for years that we had to fill out resumes and go through interviews. Several of us found other things to do for the summer. Royster, however, forgot to ask when summer school started, so there was no time for resumes and interviews. The summer school principal was on the phone trying to find teachers at the last minute–called me, but I was busy.
Anyway, at that time tuition, was at least $150–so sometime between 2002 or 2003, the tuition changed to $30–a ridiculous decision–and considerable lost money for the Education Fund over maybe a five-year period. After Hannah read my recent comments, he put me in touch with the new principal of summer school–he doesn’t know when the change in tuition occurred (and didn’t know he had been higher), but has been charged with saving money for the district–thus, the lottery system. Wisdom would say–return to higher tuition, but that would probably be a board decision.
That would be “didn’t know “it,” not “he” would be higher–I can’t watch kids and type at the same time.
Sorry–my state,emt was unclear. I don’t know when tuition was lowered; it could have been more recently under Hinton or maybe Royster changed it–don’t know yet.
Actually, Jim, since I’ve paid over $150 for FOIA requests, I probably helped pay several days’ salary for a clerical person.
Or an hours work for a consultant.
By reducing the cost of summer school, more students can attend and thus graduate. Imagine this scenario….a senior is a few credits short of graduating in May for whatever reason, but is committed to getting that H.S. Diploma. Student’s family can’t afford (or the student him/herself) $150 so student just drops out and never graduates. OR the student opts to return in the fall for a few credits which ends up costing the district much more than it lost by offering cheap summer school.
Or how about this? A 4th grader isn’t a strong reader. Summer school would really help. Student doesn’t have an IEP so parents must pay extended school year out of pocket. But parents can’t afford $150 so student doesn’t get help over the summer and returns in the fall playing catch up.
Generalizations are out of line here. Students don’t always need summer school because they’ve screwed up or because the district didn’t do it’s job.
I agree, generalizations are not appropriate. But fees should be established based on cost to deliver the service. If a student/family can prove finanical hardship, then the fee can be adjusted.
It seems that some families can come up with all kinds of $$ to spend on going out to eat, movies, high tech play things, clothes with the right logos, but are unwilling to devote money to education, additional classes or training, tutoring, etc. to benefit their children.
Jane–I’m only talking about high school now. Over the years many high schoolers–all who really needed to go–went to summer school. There were always ways that students could get help. Urban League helped many who couldn’t afford the fees, etc. Now this year only 8 students from each school will be eligible for a course. In previous years I know that many more than 30 students were enrolled in summer school for a specific course. For example, there would frequently be 3 classes of English 3–probably 80-90 students–this year only 30. I believe more kids would go to summer school if the tuition were raised. District 150 now can’t afford the “extras,” and summer school is an extra as is Edison. Year round school would solve the problem–but that isn’t going to happen either.
In my experience–and I had quite a bit of it–most of the kids who went to summer school were the ones who just played around during the school year. I doubt seriously that any student seriously committed to getting a diploma would be turned away–some way of helping with tuition was always found when absolutely necessary.
“Even with all changes underway, schools, libraries, museums, Visitors Center, expanded Civic Center, new hotel downtown, expanded zoo, new $36,000,000 Belwood, lead abatement, etc; will these “changes” make Peoria a better draw for families to locate?”
Bingo, Merle.
From Peoria Life:
“If you really want Peoria to be a successful city where young families are going to put down roots, than this school system has to be improved. I don’t know why our officials can’t see that. A new museum, ballpark, Riverplex, hotel or Technology Center isn’t going to change that basic fact.
Schools and safe neighborhoods are the cake, everything else is the icing.
Sadly, it seems to be reversed in Peoria.”
Mazr: So true! And that’s why I don’t understand why no one except some teachers and concerned parents seem to give a hoot as to the current state of PSD150. I barely saw coverage in the media about the last board meeting. It was my understanding there was picketing on Wisconsin–no mention in the news. The school board, who can’t responsibly spend a single dollar, are just going to slide in another tax increase for Peoria residents. Where is the outrage? Where is the resistance?
” over $150 for FOIA requests”
Freedom isn’t free…
in fact… apparently pretty dang expensive.
And that’s why I don’t understand why no one except some teachers and concerned parents seem to give a hoot as to the current state of PSD150
define “no one”.
There are many who are working on this. the city partnered with the district for the glen oak improvement zone. the county board has included in its strategic plan initiatives to assist the district. heck, even vendors are providing pro bono services to help the district. it may not be on the scale you seem to desire, but why tie “caring” to “outrage”, and “resistance?”
i may be biased, but i see the district gaining some positive momentum. i don’t think it rational to expect 100% of the community to suddenly decide they need to add elbow grease to the effort.
that first sentence was “teachingrocks” not mine.
sorry for the mis-use of italics.
Erik: Glad to see you back on the blog–we often need your perspective and know that you are concerned about District 150. Maybe I can take a stab at adding to what I think Teachingrocks might be saying. From her posts, I believe she represents the interests of the schools (parents, teachers, students) on the agenda to be closed–the “old” northend while my main concern is usually the southside. Many of the people (parents and students) who will be affected the most by what is going on in those schools do not get involved in protests or in expressing their opinions publicly. Many do not feel they have any political clout–and they are probably right. If one of the schools north of War Memorial were to be closed and if the students from the closed school were to be split up and bused to two to four different schools, the phone lines on Wisconsin would be congested and the board meetings would be filled to capacity. When I complain on the blog about decisions being made at Manual or conditions at Manual, etc., no one takes much interest unless I mention that Manual students should be spread throughout the city–then I get some reaction. Maybe people don’t agree with my complaints, but no one even cares enough to argue with me–except Jim.
Even teachers from the schools north of War Memorial are not that interested in the plight of teachers in the other schools. In a very recent example, parents in a school seem to have been very instrumental in firing a principal–does anybody believe that parents in the southside could have that much influence in so short a time?
“i may be biased, but i see the district gaining some positive momentum. i don’t think it rational to expect 100% of the community to suddenly decide they need to add elbow grease to the effort.”
You obviously are.
Where do you see the momentum??? AYP scores? Classroom size? Enrollment increases? Debt? Ethical behavior? Have you ever looked at the success rate figures at schools like Midstate, ICC or Robert Morris for District 150 grads as opposed to other district’s grads?