Dr. Thomas E. Ryan, Superintendent of Schools, Community Consolidated Schools District #168.

SCHOOL DISTRICT'S FINANCES

Average Financial Indicators
	Equalized assessed valuation (1996) includes all computed property values, less homestead exemptions and adjustments for tax abatements, upon which a district's local tax rate is calculated.
	Total school tax rate (1996) is a district's total tax rate as it appears on local property tax bills.
	Instructional expenditure (1997-98) includes the direct costs of teaching pupils or the interaction between teachers and pupil.  Instruction has a very narrow and restrictive definition.
	Operating Expenditure (1997-98) includes Instructional Expenditures, costs of Pupil Support Services, Instructional Staff Support Services, School Administration, Business Support Services, Central Support Services, Community Services, Debt Services, Payments to Other Governmental Units for Services Provided, and Central Administration Services.
	All the above financial indicators were divided by the 9-month Average Daily Attendance to derive the per pupil figures.
	Equalized Assessed Valuation per Pupil	Total School Tax Rate  per $100	Instructional Expenditure per Pupil	Operating Expenditure per Pupil
District	$40,368	$5.55	$2,711	$4,800
Type (1)	$164,905	$2.89	$3,621	$6,193
Size (2)	$174,963	$2.58	$3,651	$6,129
State	N/A(3)	N/A(3)	$3,990	$6,682
(1)  Average for all Elementary Districts.
(2)  Average for all Medium Elementary Districts.
(3)  State averages are not meaningful because of overlaps in dual (elementary and high school) districts.
Expenditure By Function, 1997-98
		District	District	State
Instruction		$3,565,788	45.4%	46.9%
General Administration		$276,569	3.5%	2.7%
Supporting Services		$2,481,793	31.6%	32.2%
Other Expenditures		$1,523,997	19.4%	18.2%
Expenditure By Function, 1997-98
		District	District	State
Education		$6,534,551	83.3%	72.0%
Operations & Maintenance		$407,251	5.2%	8.7%
Transportation		$232,622	3.0%	3.3%
Bond & Interest		$551,159	7.0%	5.1%
Rent		$0	0.0%	0.4%
Municipal Retirement/Social Security		$116,504	1.5%	1.7%
Fire Prevention & Safety		$6,060	0.1%	1.7%
Site & Construction/Capital Improvement		$0	0.0%	7.2%
Total		$7,848,147

Problem:  The present system of financing schools provided for the 2000-2001 school year a guaranteed foundation level of $4.425.  The state provides this level minus the amount of money collected at the local level.

Recommendations:  The District 168's Board of Education would recommend that:

1. This process continues. However, using the states average amount spent per student from prior year rather than the arbitrary figure of $4,425. This prior year figure is calculated and printed on the annual School Report Card, which is distributed throughout the state.
2. The State provides additional funds for districts that fall into the low areas of Equalized Assessed Valuation (EAV) per student. An example, the average EAV behind each student in 1998 was $174,963 for similar districts. District 168 had only $40,368 worth of EAV behind each student. There are specific Social and Cultural reasons for this low EAV, which causes additional problems and add to an already over burdened budget.
3. The total tax rate in School District 168 is the second highest in Cook County and is double what an average district is with our same demographics. How can we attract businesses in our community when we have a tax rate, which is so very high and produces so little?

Problem:  Presently, the State, via funding from the Federal government, provides money for Title I eligible students based upon the 1990 census data. This data is so outdated and inaccurate,, children are not being given the remedial services, in Reading/Math for which they are entitled.

Resolution:  The District 168's Board of Education recommends that:

1. The State change the eligibility criteria from the 1990 census to the prior year free and reduced lunch count data. This data is updated yearly and provides an opportunity for children who need remedial services to receive them on a timelier basis. This data can be verified on a yearly basis in order to insure that the numbers of children who qualify is accurate.

Problem:  The present system was mandated by the legislature to only allow district to levy at the prior year cost of living (except for new property).

Resolution:  The District 168's Board of Education recommends that:

1. To remove the tax caps and allow local Boards to approve the tax levies according to prior year EAV.  This reinforces the concept of local control and will save the State millions of dollars to be used to fund other initiatives.

Problem:  The present system of funding is based upon a guaranteed foundation level ($4,425). The State is not providing $4,425 for every student but rather, provides $4,425 for the average daily attendance of children in our district, which is between 90-96% of the children that attend school on any given day.

Resolution:  The District 168's Board of Education recommends that:

1. Eliminate the average daily attendance (ADA) factor and fund districts on average daily enrollment (ADE). This would allow districts to receive a guaranteed foundation level for all students, not just 90-96% of them.
2. Further, when a child is absent, a district must still have the same number of teachers, custodians, classified staff, and must pay the same amount of utilities on a daily basis. Does it not make sense to fund our schools in the same manner?

Problem:  The State presently only funds foster students who are special education students at a 100% level. AU regular foster children, who also need so many other services, are funded like any regular student, but drain districts of so many other ancillary services.

Resolution:  The District 168's Board of Education recommends that:

1. Provide 100% of the cost for all services rendered to foster children. These children are placed in areas where funds are already scarce and overburdened. The State needs to fund these children for the costs incurred because of their unique problems (the south triad has specific problems with these students.) We are used as a dumping ground for these students and have done a study to prove this theory. Examples of additional services are, psychological services, social work services,, OT/PT services,, speech services, as well as an array of detailed counseling options.

Problem:  The States former State Aid formula regarding funding of schools (which caused the historical problem because high school were funded at a higher level) as well as larger areas of local revenues has caused a wide disparity in high school vs. elementary school salaries.  (Especially in low income and low EAV districts)

Resolution:  The District 168's Board of Education recommends that:

1. Special consideration be given to districts whose teachers are paid at lower than regional averages.  This situation causes high teacher turnover rates in those districts, which has a tremendous impact on the academic lives of children.
2. The State should set some minimum base salaries statewide or on a regional basis and utilize the salary disparity factor in the calculation of the new funding formula.

Problem:    Presently, the State Board has offered competitive grants for district to receive funds for technology.  The grants normally do not allow districts to use as needed but rather, special percentages to be used as the State Board requires.

Resolution:  The District 168's Board of Education recommends that:

1. The State Board should guarantee every district funds on an annual basis.  The money, should be allowed to be used for hardware, software, staff development or maintenance at local discretion.  As you are aware, the changes in technology occur so rapidly, districts in the lower EAV quartiles do not have the fund to upgrade and maintain.  All districts need to provide the best technology possible (to be used as a tool) to keep our children in the 21st Century and competitive.  Where a child lives should not determine the level of technology a child can access.

Problem:  The State funds schools based upon average daily attendance (ADA) and have never taken into consideration the impact class size (especially in grades K-6) have on the success of our children.

Resolution:  The District 168's Board of Education recommends that:

1. Class size(s) per grade level be assessed by the State to determine an adequate number of students per class.  Once this number is determined, the State should provide additional funds (either through the foundation or some type of teacher initiative grant.) We recommend:

          We believe the State needs to address this major component, which 

          would have a tremendous impact on the lives of the students we so proudly

          serve.

Problem:  The States method of funding for student transportation is based upon one (1) or two (2) calculations.  The actual cost of transporting children varies and since the State mandates busing, they should fully fund its costs.

Resolution:  The District 168's Board of Education recommends that:

1. The State Board should fully fund the cost of transportation of students to each district.  Further, the present two (2) calculation methods should be eliminated, as the cost of transportation of students should be the driving force.  The costs vary depending upon the diverse regions and therefore, fully funded reimbursement should be a priority.  When districts need additional duns to pay transportation cost, the monies are taken from the education fund, which depletes funds to be used for our children.

Problem:  The State presently requests district to submit Competitive Applications to receive special grants.  The wealthy districts always have an edge because then can employ outside consultants or have a full time grant writer on staff to obtain these special grants.

Resolution:  The District 168's Board of Education recommends that:

1. To eliminate Competitive Grants and provide an instrument to evaluate needs of all districts.  Then give out awards as monies become available to all districts.  Also, try to offer grants on a four (4) year rotating schedule so all districts have an opportunity to obtain funds for initiative(s).

Problem:  The present system of determining Poverty Grant monies is flawed because it uses the 1990 census data as its reimbursement basis.

Resolution:  The District 168's Board of Education recommends that:

1. The annual free/reduced lunch count be used as a more accurate basis to determine a districts eligibility for these funds.
2. The Illinois Legislature fund's this grant according to how much monies are needed based on the above formula.  Rather, the legislature makes an appropriation based upon an arbitrary amount and those who qualify split the pot.  We also believe the sliding 4 tiers amounts should be eliminated and all districts that are eligible receive the same amount per student.

Problem:  the State's funding formula provides the same foundation level to all districts throughout the State.  There are wide costs disparities in the regions of our school districts.

Resolution:  The District 168's Board of Education recommendation is to:

1. Implement a Regional Indexing System that would allow for district in areas where costs are higher to receive an increase in funding.  The Illinois Department of Revenue could certify the amount of the increase based upon the data that they collect on a bi-annual basis.

Problem:  The present system of funding provides $8,000.00 for every certified special education teacher.  This $8,000.00 was based on a percentage of a teacher's salary in the 1985.

Resolution:  The District 168's Board of Education recommends that:

1. The State needs to update the reimbursement amount for each teacher based upon 1999-2000 salaries.  Then, reimburse districts on a 100% calculation of this figure, not a pro ration as was done until the 1999-2000 school year.
2. Because of lack of certified special education staff, the State should provide reimbursement for certified regular education teachers who are serving in special education positions, because there are no special education teachers available to fill these positions.