Schools

District 210 Board Juggles Facts, Solutions to Financial Crisis

Illinois State Board of Education poses September deadline for debt reduction plan. Financial planner presents options.

Amid a crowd split between murmuring with distrust and showing support, the Lincoln-Way District 210 Board of Education Thursday faced its options of what they must do to pull the district out of debt.

Rumors of a school closing have caused concern and resentment in the community, some said, while Superintendent Dr. Scott Tingley assured that a decision has not yet been made.

“I feel that this is an opportunity for this board to really help bring this community together, build confidence in the things that need to happen,” said Mike Barnas, a Frankfort resident.

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The board will research if the four high schools are being used to capacity, if the district can reduce curriculum offerings and still meet state requirements, and if voters will support a tax hike.

The board heard a presentation from Mark Anderson with the Illinois State Board of Education regarding the state’s requirement that the district submit a deficit reduction plan by September 2015—the first step in getting the district off of the state’s Financial Watch List. Dr. Don Weber and Steven Crouse of PMA Financial Network outlined various scenarios—a pension cost shift by the state, property tax freeze, school closure, referendum and a combination of these scenarios—and their financial outcomes for the district.

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Tingley followed up with three options from the board:

  • Building Closure: Estimated to save $5.2 million. This scenario includes a reduction of five administrators, 20 teachers, 30 clerical and support positions, 76 coaching stipends and 49 activity stipends.
  • 5% CPI Tax Referendum: A two-year tax referendum would require approval from voters. A tax hike would generate
  • Eliminating one class and all extracurricular opportunities: Estimated to save $5.3 million annually. This scenario includes a staff reduction of 46 positions.

“That’s certainly an option,” Tingley said, of cutting all extracurricular activities at a school, which he noted would put that school’s students at a disadvantage for college athletics and scholarship opportunities.

“No. That’s not an option,” parents said from the audience.

It took years for the district to fall into such dire financial status, said Weber, and it will take just as many for it to climb out. State financial aid is expected to decrease even more in the coming years, said Stephen Crouse, of PMA Financial.

“Expenditures exceeding revenue dates back to 2009,” Weber said. “The anticipated growth in student population failed to materialize. 1,800 students graduated from your four schools this year. 1,300 are enrolled in kindergarten in feeder districts. Enrollment decline is there, has been there, and by all indicators, will continue to be there.”

In May, Superintendent Scott Tingley visited each of the four high schools and presented a slideshow to faculty and staff. At each, Tingley told LW 210 employees that the district’s financial problems began when “they turned the key at Lincoln-Way North.” Opened in 2008, North was the first of two new high schools. West opened the following year. The modern schools are the newest to be built in the south suburbs and the envy of many districts. But Tingley said the district immediately began deficit-spending and its cash reserve is now depleted.

Read the report from PMA Financial

Parents called for transparency as the district considers its options. The board has scheduled a town hall meeting for Wednesday, July 1, at 7 p.m. in the Lincoln-Way Central Fine Arts Center. Parents will be welcome to address the board and ask questions at that time.

Some parents urged the board to do whatever it can to keep all four schools open; others encouraged them to do what they must to repair the district’s finances.

“My hope is that this administration two years from now, is being examined for how they solved this problem with creative thinking,” said parent Tim Meade. “My challenge to you is just don’t be the typical Illinois political figures. Use your God-given talents and be the people someone is calling years from now because of how you solved this problem. My hope is that we find a way to keep all four schools open.”

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