D97 Board Intends to Run a Referendum in 2017

Oak Park, IL - The Oak Park Elementary School District 97 Board of Education intends to run a referendum on April 4, 2017, in light a projected dip in funds below 25 percent at the end of the 2017 fiscal year.

Below is a statement from the District 97 board about the decision to run a referendum.

During our meeting this evening, we approved a resolution announcing our intent to run a referendum on April 4, 2017. This is something we have been proactively planning and openly discussing since our most recent referendum in 2011, which we sized to serve as a bridge that would get us to this time period (i.e., 2017 to 2019).

While we have carefully managed our money during the past five years with the help of our financial advisors and citizen-led Finance Oversight and Review Committee, there are three critical factors that are impacting the timing of this endeavor. These factors, which are detailed below, have contributed to our fund balance being projected to be under the 25 percent level at the end of fiscal year 2017 and in the negative during the 2018-19 school year.

• The continued decline of the state’s financial status. Illinois’ unstable financial situation has led to the proration of state funding, which has cost our district millions of dollars over the past few years. This has come at a time when the state already ranks second to last in the country in funding education. With no viable solution in sight for addressing the state’s budget impasse, we, along with many of our peer districts, are facing the very real prospect that even less money will be available to schools moving forward.
  
• Lower than expected Consumer Price Index. Our sizing of the previous referendum was based, in part, on projections of a moderately strong and healthy Consumer Price Index (CPI). However, a persistent downturn in the economy contributed to a lower than expected average CPI. As a result, we have been unable to access more than $1 million that we projected for this year back in 2011.
  
• Increase in student enrollment. While we had anticipated an increase in student enrollment in the years following the 2011 referendum, our growth to date has exceeded those expectations by 225 students. We are facing a similar situation in the future with projections for the 2017-18 school year estimated to surpass our expectations by more than 300 students. These bumps in enrollment often coincide with an increase in costs for staff, resources, materials, etc.

In the months ahead, we will be studying and assessing the referendum options that are available to us. Part of this exploration will involve undertaking several activities that will help us determine both the type and size of the referendum we will seek. These activities include:

• Identifying potential cost savings and efficiencies across the district.
• Performing a thorough and ongoing review of our projection assumptions.
• Exploring opportunities for non-property tax revenue.
• Continuing to monitor the situation with the state.

We will keep the community updated on the status of these efforts. We will also let people know how they can stay informed and/or share their comments, questions or feedback regarding the referendum. In the meantime, we thank the citizens of Oak Park for their time and attention to this matter, and for all that they do on a daily basis to help our students learn, grow and achieve.