Elmhurst D-205 Cash Clash: How Much Should Be Put Away?

ELMHURST, IL — Members of the Elmhurst School District 205 board on Tuesday disagreed over how much money the district should sock away, with members getting unusually pointed with one another.

At a finance committee meeting, board veterans Jim Collins and Karen Stuefen, both with more than a decade's experience as members, agreed with a recommendation to keep the equivalent of 5 to 15 percent of the district's annual operating expenses in the bank.

However, three newer board members, Athena Arvanitis, Courtenae Trautmann and Beth Hosler, urged the district to put away more money. Arvanitis recommended 15 to 25 percent, citing cost overruns in building projects and expected increases in wages, given staffing shortages.

In a debate, when Stuefen made a statement about accounting practices, Arvanitis cut in, saying, "That's an assumption being made. That's an interpretation being made."

Collins said, "Excuse me, it's not an interpretation. It's a fact."

When Arvanitis was speaking about her views on the issue, Collins cut in, saying, "Please, you're confusing accounting systems."

And when Stuefen spoke about how the district handled fund balances in the past, Arvanitis broke in again, saying she wanted to hear from experts, not just about what the district did in the past.

Chris Whelton, assistant superintendent of finance, said he could see Arvanitis' point about setting the required fund balance a "little higher" than 5 percent. He said he agreed with Stuefen's interpretation of accounting practices.

Hosler also said 5 percent was too low. In 2012, the district was above 5 percent and still making budget cuts because of its financial situation, she said.

"I would feel more comfortable that before we get to that point, we are talking about what we can do to replenish those funds or bring that fund balance higher before we get to the point where we're going to make budget cuts that are going to affect potentially our students," Hosler said.

Trautman agreed, saying that was especially true as the district was talking about opening the scope of the dual-language program.

Collins, however, said 85 percent of the district's income is "extremely stable." He said the district does not need to cut the budget as long as it makes sure wages and benefits climb no faster than income.

He also said the district has done relatively well with its finances, despite challenges such as the 2008 recession and the pandemic.

But Arvanitis said the district would feel pressure to increase wages, given staffing challenges that schools are facing.

"Five percent as a baseline when you're in budget cut world is not a good idea," she said.

Collins said, "I would respectfully disagree with that because our employment costs have a long visibility range. The financial modeling tools are far superior."

As Collins spoke, Arvanitis started to pack up and then proceeded to leave, saying she had to go to a PTA meeting.

"I guess we won't have this discussion," Collins said.

The more than two-hour meeting ended a minute later.

The board is likely to vote on the fund balance policy at its meeting Tuesday.