Grant School District 110, based in Fairview Heights, Ill., about eight miles east of the Mississippi River and St Louis on I-64, is one of several K-8 districts that feed into Belleville East High School. Grant has already cut programs like band and chorus, but if a tax referendum doesn’t pass in the March primary, the district will run out of money in April, the Belleville News-Democrat reports.
“Property values have dropped, so revenue from that source is down over the last five years,” the St Louis Post-Dispatch quoted Superintendent Matt Stines as saying. “Grant money from federal sources is down. And then the state with its problems has cut aid to us. We’re losing revenue left and right.”
“If we don’t get the revenue, we are going to dissolve,” the News-Democrat quoted him as saying. “We’re going to hit a point where we won’t have money to pay the bills. The option is then either somebody bails us out—the state swoops in and gives us free money—or we dissolve.”
If the district folds, the 720 pre-K–8 students will have their future school decided by a committee of 10 homeowners in the district, appointed by the office of the regional superintendent of education for St Clair County. She told the News-Democrat that no district has dissolved in the county since the 1950s. The redistribution of students, assuming the district dissolves, isn’t a simple process and would depend on the available capacity in the seven districts that are contiguous with District 110.
According to district documents, expenditures in the education fund have gone down over at least the past three years. The district has made necessary cuts while it borrowed money against working cash to pay for obligations. Actual education fund expenses were reported as follows:
- 2009-10: $5,695,207
- 2010-11: $5,018,502
- 2011-12: $4,711,399
In words, “the district has made significant cuts to staff and programs,” its website declares in a Q&A written before last April’s elections, when the referendum failed by just 68 votes. “We still don’t have enough revenue to cover expenses.”
Compared to Illinois averages, the instructional spending per pupil has fallen in District 110. The Illinois School Report Card just released shows that per-pupil instructional expenses in 2011 were 96 percent of the state average, while in 2012 that percentage dropped to 86 percent, and this year to 85 percent.
How much would taxes go up?
The district plans to ask voters for an 85-cent tax increase. The current rate is 3.8348, and multiplied by $33,000, the equalized assessed valuation of a $99,000 home in the district, that brings the portion of the tax bill for the school district on that home to $1,265 and change.
However, in 2014, one bond will be retired—completely paid off—just as the tax increase would get placed on the rolls. This retired debt made up 0.25 of the district’s rate, so with the 85-cent increase and this 25-cent decrease, the net increase will be 0.60, bringing the rate to 4.4348 for the school district.
On that $99,000 home, the tax bill for 2014 would be $1,463, an increase of $198 for the first year.
And then, in 2015, additional school debt that contributes 30 cents to the tax rate will be retired. That will bring the school district’s portion of the rate to 4.1348, and the tax bill for that $99,000 home would be $1,364, an increase of $99 over the current rate.
Not a question of ‘Will taxes increase?’ but ‘How much?’
The district has considered other options, such as consolidation with neighboring districts. However, because of the way the state’s funding formula works, a merger would result in less money flowing into the schools per pupil.
One parent, who says her increase would be much more than the $99 Mr Stines claims it would be, won’t be able to afford it. “It’s way too much of an increase to ask for in this poor community,” the News-Democrat quoted her as saying.
In addition to the computer, band, and chorus programs, the district has also cut gifted education programs, a part-time nurse, a school resource officer, and four grade-level teachers. “To talk about cuts, at this point, would mean class sizes at mid-30s, pushing 40s,” Mr Stines said. “Physically that’s not possible, and educationally, that’s just dumb.”
It’s common for districts that need more revenue to stay alive to put the referendum on the primary ballot. Fewer people turn out for the primary than for a general election, and those that do, tend to show up to vote on an issue, such as this tax increase. The district has launched a Facebook page, here, to keep community members informed on the referendum.
On that page, the district posted a status update, saying, after consultation with state officials, it was “done” if the referendum doesn’t pass. The actual deficit for Fiscal Year 2013 was $1.44 million. Without a tax increase and given the expected drops in revenue from the state, the deficit is projected to be $2.34 million for FY 2014, and $3.49 million in FY 2015. That figure represents about half of the district’s total operating budget, and no organization can survive with that much deficit.
And we echo what Mr Stines said in the paper: Educationally, making more cuts to race against the falling revenues is just dumb. So, if the referendum fails, the district will certainly do the educationally smart thing and dissolve, sending its kids to one of the other districts in the area.
If that happens, owners of those homes would assume the tax rate for the receiving district, which, in all possible scenarios, is higher than the current Grant District 110 total rate of $1.42 (per $100 EAV) but lower than what it would be if the referendum passes on the March ballot:
- East St Louis: $1.91 rate, tax bill would increase by $161
- Harmony-Emge: $1.93 rate, tax bill would increase by $168
- Signal Hill: $1.97 rate, tax bill would increase by $181
- Wolf Branch: $1.75 rate, tax bill would increase by $109
- Pontiac: $1.57 rate, tax bill would increase by $50
Keep in mind, the district is retiring debt, which will put the rate, $1.72, somewhere in the middle for the region by 2015, assuming no other district raises its taxes and the referendum passes.
So here’s us sending our strongest advice to the voters in District 110: We don’t know if it would be better for the students to dissolve the district or to increase its tax rate, but one thing we’ve learned through our coverage of stories like this is that the voice of the people, spoken in voting booths, is often the last word, as it should be.
To the good people who vote in District 110, which serves students at Grant Middle School and Illini Elementary School, set your calendars for March 18 and let your voice be heard about the public schools our next generation attends. If you need more information, contact Mr Stines at his office, (618) 398-5577 or stines.m@dist110.com.
