School Bond Debt Drives Property Taxes

School districts need to keep borrowing so that they can spend today and tax tomorrow.  They think as long as they are not raising taxes much, we won’t notice.  But, we are paying attention.  When we approved the last referendums (Hubble, high schools…) those were to be paid off in 20 years – like a mortgage.  Instead, the school board has refinanced bonds to lower current payments and push the all-paid date out.  Then they borrow more – new, non-referendum bonds.  It is now more like a home equity line of credit that will never be paid off, so taxes will never go down.  Currently about 9% of our property tax bill pays for past school district borrowing.  If we STOP future bond issues our taxes will go down! Continue reading “School Bond Debt Drives Property Taxes”

QA Jefferson with links for details

 

I will be voting “NO” despite the fact that everyone (me included) would like to say “yes” to a new Jefferson Early Childhood Center…

 

Bottom line:

District 200 cannot afford a new building without issuing new debt that will let them spend today while taxing tomorrow. The latest 5-year forecast, which does includes a new building, shows a $26 million deficit.  In recent years, the end-of-May financial report shows that prior to the first installment of yearly property taxes, the District’s money in the bank dips to around $15 million.  So while the referendum wording says “without levying a separate, special property tax,” they will need to find money somewhere. Continue reading “QA Jefferson with links for details”

D200 Pre-K enrollment & Cost

Over the years we have a few snapshots of District 200 pre-k enrollment numbers.

I have no details about the growth in the program from 2001 to 2007.  The growth between 2012 and 2016 is due to non-mandated, federal grants for low-income families in the half-day Head Start program and the all-day Preschool Expansion Grant (PEG) program. Total program numbers for 2018 are similar to 2016.  The district’s 2016 “future consideration” numbers show a forecasted growth in the non-mandated grant programs and the number of typically developing students in the blended classes.

As preciously posted on DuPageWatchdog:

2016-preK-enrollment-chart

 

2016 Pre-K enrollment numbers 

From the July 2016 FOIA, I have end of year 2015-2016 enrollment numbers.  Note: the school report cards will list numbers from the fall and since children with IEPs are enrolled in the program when they turn 3, the report card numbers will be lower.

The summary page from the FOIA:
d200prek june2016entollment

The raw data from that FOIA preK2016classEnrollment

When I copy the raw data into excel and add it up, it is almost the same (2 more in Jefferson.  i missed the speech only at at Madison – the first 50+ pages were almost completely redacted, original was most likely a student list).  The FOIA responses includes details of how many are special needs (mandated taxpayer funded education) vs. “typically developing” (pays tuition).  I am not sure if the bi-lingual program is mandated or tuition based.  PEG and Head Start are both federal grant programs that are NOT mandated.

 

d200prek june2016 detail entollment

The same FOIA response included “Future Considerations link

d200prek june2016 forecast entoll

 

Notice the predicted increase was in the number of blended classes (more tuition based students), and the number of low-income students in the non-mandated, federal grant programs.

 

There are mixed reviews on the Head Start program’s effectiveness.

“In the final phase of a large-scale, randomized, controlled study of nearly 5,000 children from low-income families, researchers found that the positive effects on literacy and language development demonstrated by children who entered Head Start at age 4 had dissipated by the end of 3rd grade, and that they were, on average, academically indistinguishable from their peers who had not been in Head Start.”  https://www.edweek.org/ew/articles/2013/01/09/15headstart.h32.html

Cost of Grant Programs

The same article says “The $8 billion Head Start program serves nearly 1 million low-income children.”

That is about $8,000 per child.

The PEG all-day grant program, which also serves low-income families, will cost $17,000 per child. https://dupagepolicyjournal.com/stories/511549582-records-taxpayers-spending-17-220-per-child-on-wheaton-preschool-for-4-year-olds

See below for my notes on what pre-K costs in 2012-2013.

 

2018 Pre-K enrollment numbers

Another resident had received 2018 enrollment numbers via FOIA from CUSD200.

Those numbers are similar to what the district had in 2016

d200prek june2018 entollment

 

From My 2013 Notes on Pre-K Program Costs:

What does the pre-K program cost the district (taxpayer)?

I tried asking.  I tried a FOIA. I was told that the district does not have this data broken out and that it would not be easy to pull together because the specialist work in multiple schools. Pre-K tuition is $2,115 (9 months at $235/month). Dr Harris and Stephanie Farrelly have both stated publicly that the tuition based program is self supporting. According to the latest school report card, the average teacher salary in CUSD 200 is $77,162.  Pre-K classrooms have at least two aids. Based on 140 days per year (it is a four day per week program), 6 hours per day and $11.25 per hour, I estimate that to be $19,000 per pre-K room. Thus, salary per classroom for one teacher and two aids is approximately $96,000 According to Stephanie Farrelly, the blended classes consist of 6 tuition based students and 11 special needs students. Based on 17 students per class, 2 classes per day, the cost per student is $2,858, just to cover salaries. This does not include benefits, supplies, administration or building and maintenance cost.  I just cannot understand how $2,115 in tuition covers $2,858+ in expenses.

Pre-K listed in the 2012 audit report

The complete 2012 audit report is available here. [no longer available]  On 2012_audit_p64, it lists the cost of regular pre-K as $267,597.  In the 2011-2012 year there were 70 tuition based students (from FOIA).   Dividing $267,597 by 70 yields $3,822 as the per student cost of providing this program.  Tuition charged, $2,115, covers 55% of tuition based program costs, as reported in the audit. The same page of the audit list the cost associated with special education pre-K as $1,116,877.  There were 217 special ed students and 50 speech students.   1,116,877 divided by (217+50) is $4,110 for each special ed pre-K student.  This does not include transportation, administration cost or the salaries for the specialist. Note: In-district pre-K for special needs children is mandated by the state and the state does provide some funding.  The school district must continue to provide these services.

For Comparison

And for historical purposes, a chart from 2013 FOIA

preK-numbers1-1024x425

 

vote “NO” Flyers to print

(originally posted 10/25/2018 updated to add links on 10/26/2018)

If you want to hand information to your friends & neighbors that explain the “NO” side for the Jefferson referendum.  Attached are a couple flyers that people have given me permission to share… you have permission to print and share. — Jan Shaw

vote no janshaw

pdf to print:  vote no janshaw

 

 

vote no Ives

 

 

pdf to print:  vote no Ives

 

vote no CitizenForFiscallyTesponsibleJeffersonELC

 

pdf to print:  vote no CitizenForFiscallyTesponsibleJeffersonELC

 

 

D200 facts Ives

 

Just the fact, nothing saying how to vote

D200 facts Ives

 

Links for footnotes

on the”Vote no Ives” flyer & “D200 facts Ives” flyer:

  1. CUSD 200 financial documents presented in meetings and obtained through Freedom of Information requests. details
  2. Forecast5Analytics, Inc. study for District 200 School Board, response to a FOIA dated 10/19/2018
  3. District financial statements, see p. 39:  https://www.cusd200.org/cms/lib/IL01001538/Centricity/Domain/2388/Full%20Document.pdf. (pdf page 43)
  4. Illinois State Board of Education iLearn website. http://webprod1.isbe.net/ILEARN/Content/displayData?RCDTSeclected=19022200026&District=CUSD%20200  enter data: District =”CUSD 200“ county=”DuPage”
  5. Daily Herald, District 200 pulls back on new Jefferson center, looks to referendum after all, 8/16/2018                              
  6. District audited financial statements, p. 7, https://www.cusd200.org/cms/lib/IL01001538/Centricity/Domain/20/201 3_06_30_June_30,_2013_Audit_Report.pdf. [report is no longer there]  The check
  7. Dupage Policy Journal, Records: Taxpayers spending $17,220 per child on Wheaton ‘preschool’ for 4 year olds9/3/2018; https://admissions.illinois.edu/Invest/tuition.

5-Year Forecast Shows $21M or $26M deficit

The January 2018 forecast-5 shows a $21M deficit an updated one received in October 2018 shows $26M.

On October 19 I received a response to a FOIA about district financials:

On October 9, 2018, you requested the following documents:

Please provide ALL documents that show any changes to the 5-year budget that was approved August 15, 2018 or any other documents that show how you plan to balance the budget.   

Your request is granted.  Please see attached document. (below)

forecast5 10.19.1

I had sent an update to the request later on Oct 9:
be sure to include the latest forecast-5 summary
see attached screenshot from 1/31/2018 presentation.
and included  a forecast-5 chart from page 15 of the January 2018 PMA presentation
Notice:
  • on page 13, it includes funds for Jefferson
  • On page 15 the sum for years 2019 to 2023 of “Surplus / Deficit Incl Other Fin Sources” is -$20,736,934 or a $21M deficit of the next 5 years based on the January 2018 report.  Since then, a new teacher contract and administrator contracts that are more generous than originally assumed, have been signed.
  • on page 16,  the low point for fund balances is negative in FY-2020.
I copied the data from the Oct 2018 forecast-5 chart into excel and highlighted cells that changed since the January 2018 version.  Also added a column “Sum of Row” which is a total for years 2019 to 2023.  The most important one is “Surplus / Deficit Incl Other Fin Sources” which shows a total 5-year deficit of  $26,011,650 in the October 2018 forecast.
oct2018 forcast5 highlighted
 Note: the districts fiscal year (FY) runs July 1 to June 30.  Property taxes are due in June and September.  As a result the low point for cash on hand is end of May.  District 200 has been running around $15M cash on hand at the end of May.  That will NOT cover a $26M deficit.

So yes, while “Jefferson is in the budget,” D200 does not have the funds in reserve to cover their planned deficit.