Post by macrockett on Dec 1, 2011 11:13:56 GMT -6
It's that time again. Budgets and Tax Levies.
First, I suggest rereading this thread. One place to focus is on reply #1 where I state:
"In summary, the combination of little growth, little inflation and the exponential aspect of approximately 80% of our expenses means we must address this 80% and some other issues in some fashion or we will have, in my estimation, a series of $30 million referendums every four years. The point is whether it is in our taxes as a result of CPI increases or by referendum, it will be there."
In the November 7, 2011 Board meeting where Dave Holm talks about the Tax Levy request, he mentions that in the last three years the District has made $30 million in budget cuts. I suspect it took only three rather than the 4 years I mention above is either more costs than anticipated (like Metea administrative costs) or the District was uncomfortable with the lag in State payments. Either way, what transpired was in lieu of a referendum or a rise in inflation. In other words, the first of a series of $30 million events (where do we find the next block of money to fix our cash flow issues) just took place.
Second in post #39 (focusing on the bold text):
"Moving to the subject of District 204, it is important to note the District is a $270 million (now $284 million) per year business, with revenues and expenses that must be managed properly given the constraints that exist.
On the revenue side, other than the federal and state funding sources discussed above, “local sources” (taxes) is the remaining material source of revenues. The important considerations here are growth and inflation.
It should be clear that growth in the District is nearing an end with little available land left for development. winsome.cnchost.com/MAC/PMAProjections12-8-08.pdf (growth tax began trailing off in 05-06, collected in 07-08); winsome.cnchost.com/MAC/NapervilleResidentialPermits1999_2009Q1.pdf (development began training off some time ago as shown by the Naperville permit #s).
In addition, inflation is not on the horizon www.federalreserve.gov/monetarypolicy/fomcminutes20090128ep.htm . The tax cap and cpi, cnx.org/content/m18338/latest/ ,will restrict the tax revenue collected beginning in 2010, next year.
On the expense side, approximately 80% of our expenses are salaries, benefits and associated expenses. Historically, these expenses grow exponentially.
In summary, the combination of little growth, little inflation and the exponential aspect of approximately 80% of our expenses means, based on current trends, District 204 is looking at a funding gap of approximately $7.5 million per year.
Therefore, any solutions offered that does not seriously consider consolidation and, more importantly, our employees will not solve the funding issues of our District."
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Combine the $3.5 million deficit mentioned by Dave in the 11/7/2011 meeting with the $4.6 million mentioned in the pdf on 11/28/2011 and you have $8.1 million in deficits, the next round of funding shortfall needed to be addressed. Because the District has pretty much cut to the bone, the "$7.5 per year" I mention above will have to be addressed each and every year and now includes the annual cost of Metea, approximately $3.5 million.
I'm sure the numbers don't match up exactly the way I laid it out, but the point is the same, constant shortfalls that will have to be dealt with, each and every year, or....we have a referendum and deal with it every 4 years, now at about $40 million rather than $30 million, thanks to the added annual administrative cost of Metea.
Good luck D204. And how much are we paying for this Superintendent? It's not rocket science, I can tell you that much.
First, I suggest rereading this thread. One place to focus is on reply #1 where I state:
"In summary, the combination of little growth, little inflation and the exponential aspect of approximately 80% of our expenses means we must address this 80% and some other issues in some fashion or we will have, in my estimation, a series of $30 million referendums every four years. The point is whether it is in our taxes as a result of CPI increases or by referendum, it will be there."
In the November 7, 2011 Board meeting where Dave Holm talks about the Tax Levy request, he mentions that in the last three years the District has made $30 million in budget cuts. I suspect it took only three rather than the 4 years I mention above is either more costs than anticipated (like Metea administrative costs) or the District was uncomfortable with the lag in State payments. Either way, what transpired was in lieu of a referendum or a rise in inflation. In other words, the first of a series of $30 million events (where do we find the next block of money to fix our cash flow issues) just took place.
Second in post #39 (focusing on the bold text):
"Moving to the subject of District 204, it is important to note the District is a $270 million (now $284 million) per year business, with revenues and expenses that must be managed properly given the constraints that exist.
On the revenue side, other than the federal and state funding sources discussed above, “local sources” (taxes) is the remaining material source of revenues. The important considerations here are growth and inflation.
It should be clear that growth in the District is nearing an end with little available land left for development. winsome.cnchost.com/MAC/PMAProjections12-8-08.pdf (growth tax began trailing off in 05-06, collected in 07-08); winsome.cnchost.com/MAC/NapervilleResidentialPermits1999_2009Q1.pdf (development began training off some time ago as shown by the Naperville permit #s).
In addition, inflation is not on the horizon www.federalreserve.gov/monetarypolicy/fomcminutes20090128ep.htm . The tax cap and cpi, cnx.org/content/m18338/latest/ ,will restrict the tax revenue collected beginning in 2010, next year.
On the expense side, approximately 80% of our expenses are salaries, benefits and associated expenses. Historically, these expenses grow exponentially.
In summary, the combination of little growth, little inflation and the exponential aspect of approximately 80% of our expenses means, based on current trends, District 204 is looking at a funding gap of approximately $7.5 million per year.
Therefore, any solutions offered that does not seriously consider consolidation and, more importantly, our employees will not solve the funding issues of our District."
------------------------
Combine the $3.5 million deficit mentioned by Dave in the 11/7/2011 meeting with the $4.6 million mentioned in the pdf on 11/28/2011 and you have $8.1 million in deficits, the next round of funding shortfall needed to be addressed. Because the District has pretty much cut to the bone, the "$7.5 per year" I mention above will have to be addressed each and every year and now includes the annual cost of Metea, approximately $3.5 million.
I'm sure the numbers don't match up exactly the way I laid it out, but the point is the same, constant shortfalls that will have to be dealt with, each and every year, or....we have a referendum and deal with it every 4 years, now at about $40 million rather than $30 million, thanks to the added annual administrative cost of Metea.
Good luck D204. And how much are we paying for this Superintendent? It's not rocket science, I can tell you that much.