State aid increases but district borrows $1 million
By Michael S. Hoey
Correspondent
A tax levy of $15.2 million resulting in a mill rate of $9.29 per $1,000 of property value was approved at the Delavan-Darien School District annual meeting. The levy is 3.61 percent lower than last year and the mill rate is down from $9.64 per $1,000 last year.
Business Administrator Mark Powell presented the budget during a public hearing that preceded the annual meeting. He said based on projections, the district will need to make significant reductions or pass a referendum in the coming years to maintain its programs. Powell said after the referendum failed on April 1 the district cut $1.5 million by laying off staff and pursuing other cost savings but still had to borrow $1 million from the State Trust Fund to cover all of its expenses in the budget.
Board President Jeff Scherer asked if the district can legally continue to borrow $1 million every year, not that it wants to. Powell said he was not sure.
Board member Steve Logterman said the district will receive about $1.5 million more for 2014-15 than it did for 2013-14 and asked if the $1 million loan was still necessary.
Powell and Scherer said the increase in state aid helps the taxpayers but does not provide more money for the district. The increase in aid simply allows the district to lower the levy, so the taxpayer benefits, but the district sees no additional funding.
Board member Joe Peyer said the $1 million loan was necessary but questioned why the district will receive $1.5 million more than it did last year and yet the levy decreased only about $600,000.
Powell said the $1.5 million increase in state aid is not reflective of pure equalized state aid. Other aid amounts and some increased costs in the district are included in the figure. The budget lists $33 million for total expenditures for the 2014-15 school year compared to $32.4 million for last year.
Powell said the budget will not be final until October when more definitive numbers from the state and from district attendance figures are in.
Looking ahead, Powell said during the annual meeting that the district debt for past borrowing should be paid off within the next three years.
Next year’s budget hearing and annual meeting will be Sept. 28. Scherer said he and Crist discussed moving the date from its traditional place in late July because it would be closer to when the final budget numbers are available.
