By Jack Martin

Chairman, Taxpayers for Good Government

Big Hollow School Board District #38 members have voted to put a 55% tax increase on the November 7 ballot.  A referendum to add $1.35 to the existing $2.43 school tax rate will be one of the largest in the history of Lake County.

The typical Big Hollow taxpayer could see over $1,507 added to their existing $2,713 tax bill for Big Hollow.

The school board hired PMA Financial Consultants, a professional referendum advocacy company to present a financial picture of a district in dire need of more money.  This PMA attempted to do, convincing only the seven member Board.

The School Board tried to make the case of “not enough revenue with a high growth student body.”

In the last four-year period with 8% inflation, all school revenues have increased 87% with property taxes up 40%, and revenue per student growth has exceeded inflation.

Since the tax cap was enacted in the early 1990’s, total revenues for the district have soared 418% during a period of 47% inflation.  The School Board said the tax cap is hurting their ability to tax for more dollars; the facts do not support their case.

The School Board has simply overspent, and now is the time to get spending under control and not raise tax revenue.

Here is why Big Hollow is in Financial Trouble: Overspending

Big Hollow Grade School District, for the most current fiscal year, reported to the State Board of Education for the 2004/05 school year 105 teachers and administrators.

During a five-year period of 10% inflation from 1999/2000 school year, the School District Board raised the pay of 19 employees who were steadily employed in the District by an average of 42.2%, more than four times the inflation rate of 10.2%.

Name	1999/00	2004/05	% Incr.
Arndt, Christine	$62,357	$88,787	42.4%
Shea, Anne	61,985	76,519	23.4%
Shafer, Elizabeth W	53,633	66,357	23.7%
Bucher, Lois Ann	50,704	64,814	27.8%
Schneider, Ladon M	35,537	63,686	79.2%
Castetter, Julie M	44,516	62,335	40.0%
Figuerora, Barbara A	38,986	58,873	51.0%
Haney, Roberta	38,986	58,873	51.0%
Hastings, Eileen M	40,025	58,873	47.1%
Webster, Linda M	40,025	58,873	47.1%
Pappas, Lori D	43,110	56,828	31.8%
Janusz, Lenayn M	40,025	56,275	40.6%
Ward, Nancy	37,878	55,999	47.8%
Wall, Kathleen	38,241	54,564	42.7%
Wick, Heather	34,720	53,127	53.0%
White, Jeannette	36,789	52,371	42.4%
Mcavinney, Angelique	33,690	51,135	50.6%
Pinto, Joanne	33,647	48,264	43.4%
Ehlert, Ellen	29,979	44,172	47.3%
Average	$41,847	$59,512	42.2%
Inflation – CPI Chicago Region	176.0	194.0	10.2%

What will the Big Hollow Tax Increase Referendum Cost?

On November 7, 2006, the voters in Big Hollow Grade School District #38 will be asked to increase their property taxes by $1.35 per hundred dollars of assessed valuation.  The question the School Board did not ask was can the District taxpayers afford it?  Can you?

COMPARE THE TAX INCREASE ON VARIOUS PROPERTY VALUES IN BIG HOLLOW:

Market Value Property             $150,000     $250,000     $350,000     $450,000

Taxable Value                          $45,000       $78,333      $111,666    $145,000

Current School Tax Rate                2.43            2.43             2.43           2.43

Current School Tax                    $1,094         $1,903          $2,713       $3,524

Tax Rate Increase                         1.35            1.35              1.35          1.35

Proposed Tax Increase              $608         $1,057          $1,507       $1,958

NEW SCHOOL TAX 1^st Year     $1,702         $2,960         $4,220        $5,482

2^nd Year                                   $1,762         $3,064         $4,368        $5,674

3^rd Year                                    $1,823         $3,171         $4,521        $5,872

*TEN YEAR TAX INCREASE      $7,129       $12,400       $17,678       $22,970

CURRENT TOTAL TAX BILL*      $3,103        $5,401         $7,699         $9,998

2005 RE Tax Bill Paid 2006

NEW TAX INCREASE BILL**     $3,711       $6,458          $9,206        $11,956

2006 RE Tax Bill with Added Tax

TOTAL TEN YEAR TAXES       $43,530      $75,757      $107,994      $140,254

THINK ABOUT THIS WHEN YOU CONSIDER THE TAX INCREASE REFERENDUM!!

  *Fox Lake Resident 2005 Tax Rate of 6.895

**New Fox Lake Tax Rate, IF Referendum Passes 8.245

How Big Hollow Could Have Saved Money and Still Overcompensated Administrators and Teachers

If the nineteen administrators and teachers that received on average a 42.2% pay increase over the past five years were given a responsible 3% per year instead, the district would have saved over a half million dollars.

The annual 3% per year would amount to a total increase of over 19% for the five years, less than half of what the Board gave, saving $549,061 and still paying twice the rate of inflation.

The five-year savings of responsible pay increases would have saved Big Hollow millions of dollars by rewarding all administrators and teachers with a 3% annual pay increase.

                  Actual         Responsible*   Annual       Cumulative

                  Salaries       Salaries          Savings      Savings

1999/00     $795,103      $795,103              -0-              -0-

2000/01       846,994       818,956          $28,038      $28,038

2001/02       882,439       843,524            38,915       66,953

2002/03       983,514       868,830          114,684      181,637

2003/04    1,053,333       894,895          158,438      340,075

2004/05    1,130,728       921,742          208,986      549,061

*Plus 3.0% annual increase, equals 19.4% over five years.

Big Hollow School District #38 Facts and Figures

(Click here for a pdf file of this information.)

	Total	Property	Ave.  Daily	Revenue
Year	Revenue	Tax	Attendance	Per Student
1990/91	$1,851,308	$1,642,110	340	$5,441
1991/92	2,191,535	1,906,635	364	6,021
1992/93	2,163,887	1,925,859	381	5,672
1993/94	2,346,004	2,111,404	403	5,817
1994/95	2,437,842	2,145,301	430	5,671
1995/96	2,632,253	2,316,383	441	5,969
1996/97	2,720,482	2,366,819	461	5,895
1997/98	3,001,932	2,641,700	481	6,238
1998/99	3,636,425	3,236,418	488	7,457
1999/00	4,845,020	4,312,068	493	9,818
2000/01	5,139,654	4,574,292	586	8,766
2001/02	5,689,058	3,782,615	666	8,540
2002/03	6,906,629	3,767,001	816	7,450
2003/04	8,391,302	5,759,023	934	8,981
2004/05	9,586,629	6,421,388	1,000	9,585
Fourteen Years 1990/91 to 2004/05 - Since 1st Year of "Tax Cap"
Increase - 14 Yrs	418%	291%	194%	76%
Inflation - 14 Yrs	47%	47%	Plus 660  Students	47%
Five Years 2000/2001 to 2004/05
Increase - 4 Yrs	87%	40%	71%	9%
Inflation - 4 Yrs	8%	8%	Plus 411 Students	8%
Source:  State Board of Education

Posted August 1, 2006.