Elmhurst D205's Way To 'Tax To Max'?

ELMHURST, IL – The Elmhurst School District 205 board voted Tuesday for a policy to keep more money in the bank.

One member hailed the move as part of the district's fiscally conservative approach, while another said it was a way for the board to "tax to the max."

Under the old policy, the board's policy required it to keep an amount equal to 15 percent of its operating expenses in its bank account. The new policy institutes a range of 15 percent to 20 percent.

Over the last couple of years, the proposed new threshold sparked spirited debates. Tuesday's meeting was no different.

In the discussion, Jim Collins, the board's longest-serving member, said the policy would mean keeping up to $20 million on hand. That's the equivalent of two-thirds of the cost of the new Lincoln Elementary School, he said.

"You're going to be lugging around two-thirds of a new elementary school as cash in the bank, out of taxpayers' pockets," Collins said. "I don't understand why we need so much cash. This is a pay-as-you-go institution."

District 205's income, he said, is "extremely predictable." And 80 percent of the operating budget goes toward the salaries and benefits tied to negotiated labor contracts, costs that are known three and four years in advance, he said.

"What future boards are going to do is tax to the max and not abate," Collins said. "The school district will be flush with cash, but we will be pricing our residents out of their homes. That's my concern."

Board President Athena Arvanitis said the new policy was in line with "our conservative fiscal approach for budgeting and spending in our district."

"The board can choose to go below the target in the short term and plan to increase back up to the target in the longer term," she said. "The reverse may also take place. The board may choose to hold cash above the target for a specific purpose in the short term, with the plan to spend down to the target range in the longer term."

Because of this, she said, the new policy provides the board with a "window of flexibility and really focuses on goals."

The board voted 6-1 for the policy, with Collins dissenting.