Elmhurst D205 Hopeful Doesn't Tell Whole Story

ELMHURST, IL – Tom Chavez, a candidate for the Elmhurst school board, is among the opponents of the board's decision late last year to raise property taxes to the state cap.

In making his case, though, Chavez overstates Elmhurst School District 205's cash on hand.

He cites the audited number for cash on hand on June 30, 2022, the end of the last budget year. It stood at $68 million.

Chavez is correct about the number, but the district is typically not that flush in cash. That date is shortly after about half of the district's property taxes come in. Such taxes make up more than 90 percent of the district's total income each year.

In its budget presentations, officials say they base budget decisions on the district's low cash point. That's to ensure the district maintains enough cash flow to continue running.

Last budget year, the low cash point for the district was in April, when the district had $40 million in cash on hand. That was earlier than usual; the usual low point is in late May.

This budget year's low point is expected to be $33 million, district spokeswoman Tonya Daniels said in an email to Patch.

"(B)ut that is highly contingent on the timing of the collection of this year's property taxes," Daniels said.

She said the district will transfer out $7 million a year annually over the next three years for building projects. The board expanded the scope of long-planned construction work, which was largely financed by $168 million in debt that voters approved in 2018.

Property taxes come in two installments, with the district receiving from 48 percent to 52 percent of the money in May or June, Daniels said.

"So the cash on hand on June 30 is at a high point due to just receiving half of the property tax revenues. Cash on hand is a snapshot in time that reflects the total cash in the bank on any specific date," Daniels said.

In justifying the tax levy hike, school officials have noted sizable cost increases in bus contracts, nursing services and health insurance claims.

They have also noted shortages of substitutes, teacher's aides, custodians and food service workers, which are driving up wages.

Asked about the district's statements, Chavez said he relied on the audited number on June 30.

Chavez's campaign website states, "So the question is why did the board raise everyone’s property taxes to the max 5%, which gives us (an) additional $8 million in revenues every year to increase our already large reserves?"

The campaign site also says the $68 million on June 30 equals 48 percent of spending. But the site does not mention that half of the district's overwhelming source of income comes shortly before June 30.

Chavez disagreed that his campaign was overstating cash on hand.

"It’s like someone hands you a check on June 1, but you hold on to it and don’t cash it until July 1," Chavez said in a text message to Patch. "But the money is there, just declared for budget purposes. Make more sense? Taxpayers all pay. The money is over at the county."

In 2021, Chavez grabbed local attention alleging that critical race theory was being taught in local schools and that students were subject to Marxist indoctrination. In this campaign, he has shifted his focus to test scores and finances.

The election is April 4. Four of the board's seven seats are up.

The other candidates are Kelly Asseff, Kelly Henry, Beth Hosler, Lan Li, Linda Nudera, Jammie Esker Schaer, Courtenae Trautmann and Ben Zulauf.