Dist. 25 taps its reserves, crosses fingers for March

By Jack Komperda Daily Herald Staff Writer
Posted January 14, 2004

Each year, the date Benjamin Elementary District 25 officials begin dipping into their rainy day funds gets earlier and earlier.

For each of the past four years, the district has been operating with a deficit. And the district expects to end the current school year more than $300,000 in the red.

This week, the school board voted unanimously to pull $250,000 from reserves to help fund maintenance and operations costs at the two schools.

"At this time of year, because of our financial situation, we don't have enough to pay down our costs," Superintendent Joseph Dubec said.

Dubec blames Benjamin's continual budget strains on limited commercial property within the small school district and on the state tax cap, which limits the amount of dollars the district can levy each year.

In the past, the district has been able to replace the money it borrows from its reserves when it receives its next property tax payments. But the fact that officials decided to rely on their reserves so early in the school year has left Dubec uneasy about the district's financial stability.

"It's that cycle," he said. "Our tax base just can't build up enough working cash."

The district, which operates Benjamin Middle School near West Chicago and Evergreen Elementary School in Carol Stream, is anxiously awaiting the results of a proposed 35-cent tax rate increase residents will vote on this March. If the tax increase is OK'd, it would bring an additional $675,000 to the district yearly.

A similar, 39-cent tax proposition failed to pass last April.

Dubec warned that without the added revenue, he would be forced to cut six teaching positions, increase average class sizes and eliminate after-school activities such as student clubs and basketball.

Average class sizes at the middle school already have increased from 23 to 26 students because of the financial crunch, officials said.

The proposed tax increase would raise the education fund rate to $2.66 per $100 of assessed valuation. It would cost the owner of a $250,000 home about $300 more annually in property taxes to the district.

Dubec estimated the district could operate with surpluses for eight years with the added revenue generated from the tax increase.