Does LTHS Need 'Big Cushion' In Budget?

LA GRANGE, IL – Lyons Township High School has $53 million socked away, which some school board members questioned this week.

At a board meeting, member Alison Kelly said it appeared the amount was above what was needed. The board, she said, should discuss its target for cash on hand.

"It's higher than we have seen. It's been going up," she said.

Officials said the current money on hand could finance the school's operations for 55 percent of the year.

Brian Stachacz, the school's business services director, said the money is a factor that helps the school keep its triple-A bond rating. It is also there in case something catastrophic happens, he said.

"At 50 percent of our expenses for the year, our auditors say you're in a great position that you want to be," he said. "There are districts with much less than that, districts with much more than that."

Last year, he said, Cook County sent property tax income to public bodies much later than usual.

"We were living off of those reserves, so we didn't have to go out and borrow money," Stachacz said. "There are districts that had to (borrow)."

He also said he was not an advocate of continuing to build up the cash on hand. Some of the money, he said, could be used for building projects.

Kelly said she respected Stachacz's judgment on the issue. But she said the $53 million was a "big cushion."

Four years ago, she said, the money on hand was the equivalent of 45 percent of a year's operating spending.

Board member Julie Swinehart said the board should consider dropping the cash on hand to 45 percent as long as it keeps its triple-A rating.

Member Michael Thomas urged caution, saying the state could push pension obligations to local districts.

Officials agreed to provide the board with a historical analysis of the cash on hand.