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.
Erik sez “I see the district gaining some positive momentum”
Are we all living on the same planet?
“Some things have to be believed to be seen”
Ralph Hodgson
in the words being spoke by those in place to position the district for the future, i hear an awareness of a school’s impact on the economic value of a community.
that’s a huge step as most school districts seems themselves as islands in and of themselves. when a school begins to see its role in the larger area around it, i happen to believe it’s a positive step. i also see a willingness to work with “non-educators” whom are so much anathema normally to those who call themselves “educators”. again, a positive step.
i personally believe one of the reasons arne duncan is as successful as he is, is due to his background in sociology. the man driving the national education agenda is not an “educator”, but he brings to the table the cross disciplines essential for success. it is not “all for the children”, that thinking is insular and naive. it’s about the community and people’s futures.
Erik, I appreciate the fact that you are trying to justify what you do, but come on… who are you trying to fool?
Duncan has a BA in Sociology… that is it.
Which “people’s” future are you thinking about? Business’s?
Schools are not going to be training grounds for minimum wage employees.. sorry to disappoint you, but that isn’t going to fly any more. It is Walmart and other minimum wage slave masters that need to stop thinking of themselves as the reason for pubic education.
We have something like a 65% graduation rate!!!!! Compare that with Home schools and Private schools…
The reason he is as successful as he is is because he is connected.
Eric: I do appreciate your input whenever you give it. I know you are more on the inside of the administration “stuff” than I am. I was speaking about outrage and resistance to the tax hike because the district seems to squander money in ways which is not “all about the children”. Sharon is right that my concern is an Averyville concern because I’m at Kingman. It does break my heart to see my parents and students plowed over because everyone seems to know there won’t be a large enough fight about closing the school. Just because you know people feel powerless and won’t resist what you do to them, that doesn’t make doing it any less reprehensible.
I also appreciate the optimistic view you have of the district and the direction it is taking. I keep telling myself that surely it will get better—it has to, right?
I keep telling myself that surely it will get better—it has to, right?
yes, i think so.
Erik – I think things will only improve if the Board can work together and agree on some dramatically different directions in which to take the District. I agree with you that the Board of late seems to be circling the wagons and trying to steer the caravan away from the same old solutions but . . . they have met with great opposition and I don’t see that changing, only getting worse.
The Board and the Administration is going to have to do much more in creating, and then explaining their vision of what the new and improved District can offer its’ students and the community.
Charter schools will be the focus of Monday nights meeting. Thoughts? Please address funding, teacher (union) leadership and involvement, parental and student responsibility – and focus of curriculm. I have heard of a desire for both a math-science school and a vocational charter. Seven are left and several applications are already moving forward.
Jim – SO glad you asked.
I vote for a middle school math and science academy (located in the Bradley area) that would, in part, be geared towards being a feeder school to a vocational high school that would offer a med tech curriculum, etc., and in part prepare students for the rigors of AP coursework or the IB diploma, depending on a student’s interests and academic abilities. The largest employers in the area, Caterpillar and the hospitals require employees with a high aptitude and extensive training in math and science, so it seems natural that this should be the focus of the 1st charter school that is formed in Peoria.
Additionally, I would prefer an absence of both involvement by the teachers’ union and current District Administration, as I believe these entities have enough on their plate for the moment. Some partnering and leadership from Bradley University would seem to offer much, as well as, involvement both in expertise and funding that could be derived from a marriage with the medical community and with Caterpillar. I would like to see one of the above referenced entities, along with the parent community be the driver of this proposed charter school.
Finally, I would envision a charter school that is staffed with a mix of certified instructors, as well as, other non-certified professionals that have specific education and experience in math and science related fields.
“Charter schools will be the focus of Monday nights meeting. Thoughts? Please address funding, teacher (union) leadership and involvement, parental and student responsibility – and focus of curriculm.”
Of course, do NOT address administration leadership, misappropriated funding, uninvolved people still on the payroll, administration and board responsibility, political and real estate fiascoes….
Parental Vouchers. Parent Choice. That way ALL schools will be charter schools.
I’m not arguing at all why parents or the public might be interested in charter schools–I understand their desire for choice, especially, since the district is not providing safe and appropriate learning environments for so many children. What I don’t understand is why District 150 wants to give up control and money–the per pupil money will follow the students to a charter school–especially, at a time, when 150 is finding it so difficult to make ends meet. True, the PFT will most likely lose control, but so will the district, right?
I think, in theory, a charter school which partners with either Bradley, Caterpillar, and/or MMCI would be an excellent addition to our district. I do hesitate to have our district take on some new project which they are unfamiliar with when administration struggles with the running of the schools they have in place.
Charter schools are not private schools–so they must have some tie to the public school, thus District 150, right? Who has the power to dissolve a charter school? Under what conditions? I think it would be District 150, right or wrong?