Palos Elementary District 118 is asking voters to approve allowing $4.35 million levied for debt service to be used instead for operating funds, providing a cash infusion without increasing taxes, said Superintendent Anthony Scarsella.
Springfield has increased the number of services public schools must offer, such as full-day kindergarten by the 2027-2028 school year, without increasing school funding, Scarsella said. This has forced District 118 and other districts to get creative in finding funds.
“Springfield certainly is not sending more money to Palos 118,” he said. “They are down there right now and I can tell you that I’m sweating thinking about the additional mandates that may be passed in this General Assembly.”
The $4.35 million comes from shifting funds from the debt service fund to the operating fund, a financial maneuver requiring voter approval. Because this referendum does not increase taxes but instead moves money from one bucket to another, Scarsella said he is unaware of any organized opposition.
“In December, the school district is going to make its last payment on all of its outstanding debt so we are going to essentially be debt free in December,” he explained. “So we are no longer going to need the $4.35 million that the school district collects right now for debt because the debt will be paid off.”
Because interest rates have been going up in recent years, Scarsella said not only would this referendum not cost the taxpayers’ more money, it may even save money because they will not be paying interest on the debt payment funds.
Brock Stein, director of communications and public engagement, said taxes would not go down if the referendum fails because school costs are rising. If taxes went down by $4.35 million, the district would go back into debt to cover the costs, eventually increasing expenses due to rising interest rates.
“Without additional operating revenue, the school district will become even more reliant on short-term borrowing to maintain its school facilities and cover day-to-day expenses,” said Stein. “This will result in continued borrowing costs to taxpayers at a time when interest rates continue to rise.”
Hank Sanders , 2024-03-06 11:16:23
Source link
