Decision time on referendum

First, the facts as presented to us by the Fieldcrest administration:

1. Due to the State of Illinois' reliance on property tax to fund education and due to declining farmland values, most school districts in Illinois are being underfunded and have serious financial problems. This year Fieldcrest will receive $263,000 less in property tax revenue. In addition, increases in insurance and operating expenses have contributed to higher costs.

2. Fieldcrest has made $1,177,000 in cuts to programs and personnel in the last two years which reduced the teaching staff by 16%, although it seems apparent that some of the cuts will be reinstated due to mandates.

3. Fieldcrest stopped funding all extra-curricular activities in 2004-2005. $191,574 has been collected from the private sector to help fund these activites. Of this, $146,754 was raised through activity and participation fees paid by parents of students who pay a $200 activity fee and $150 participation fee for each sport.

4. The Fieldcrest school board approved the issuing of $750,000 of working cash bonds last December in order to meet expenses.

5. Fieldcrest total tax rate of 4.8055 is in the bottom 1/3 of area schools ranking 13th out of 18 schools.

4. Illinois remains a low-tax state, ranking in the bottom third of all states in total state and local tax burden.

The other facts that you should consider are:

1. The City of Wenona's TIF district has resulted in the lost of tax revenue to the Fieldcrest School district since 1994. Last year alone, $257,230 went into the Wenona TIF district that normally would have gone to Fieldcrest. About half of this money is recovered through subsidies from the state. However, the lost dollars are still being subsidized by taxpayers.

2. The Fieldcrest Board of Education twice has failed to approve a measure that would result in the creation of attendance centers that would have consolidated classes and reduced costs. The last proposal would have saved $75,000 to $125,000 annually.

1. The District will have to maintain little or no increases for salaries, keep high extracurricular and activity fees and provide fewer opportunities for children. Elementary Art and Physical Education would not be reinstated and Elementary South would have to share a building principal with Wenona and Toluca grade sites.

2. The school board may be forced to institute attendance centers, consolidate class rooms and perhaps close some buildings.

3. The school board may have to negotiate with the City of Wenona to ammend its TIF district so that Fieldcrest will get more of the tax dollars currently lost to the school from Wenona's TIF.

4. Further staff cuts may have to be made.

5. Property taxes will not be affected.

6. Fieldcrest may come under the control of the State if its financial situation worsens.

6. Some or all of the above may not occur if the state passes the proposed bill to improve school funding or if farmland values improve quickly.

If the proposed referendum is approved, these are some of the possible effects.

1. Activity and participation fees can be reduced or eliminated, salaries can be improved which should help attract and keep a high quality teaching staff.

2. The school will not have to keep paying $80,000 interest per year on borrowed money to meet expenses.

3. The school can balance its budget and possibly be removed from the State's Financial Watch List.

4. The average property tax will increase by $110. An owner of a $100,000 home will have an increase of $181 in property taxes.