Lake Zurich Unit District 95 is in a strong position when it comes to money, according a five-year financial forecast prepared by a consultant.
Howard Crouse, of Naperville-based PMA Financial Network, provided the financial news for the District 95 school board at a Thursday night meeting. Crouse is a senior adviser for PMA’s Forecast5 Analytics Inc. division.
Crouse, who works with 45 school systems across the state, said District 95’s heavy reliance on local property taxes is a benefit. Unlike many others, he said, District 95 receives roughly 83 percent of revenue from property taxes and 9 percent from general state aid.
“You’re in the position of probably being in the top 5 (percent) to 10 percent of districts in terms of financial health,” said Crouse, who joined PMA in 2007 after retiring as superintendent at Indian Prairie Unit District 204 in Naperville.
The five-year financial forecast shows District 95’s annual property tax revenue is expected to grow from a current $75 million to $85 million in 2022. Crouse said the future flow of state money to schools is difficult to project, but it is expected to decline from a current $7.3 million received by District 95 to $6.6 million in 2022.
Projections also were made in the report for new construction, the yearly inflation rate and state reimbursements for certain personnel and transportation expenses. Crouse said the district will have an idea of how to adjust its budgeting with the document’s information.
“This is a good tool to have available to us,” District 95 board President Doug Goldberg said.
Some worst-case scenarios were outlined in the report. Crouse said there would be a negative compounding effect if a two-year property tax freeze plan floated by Gov. Bruce Rauner were approved by Illinois lawmakers.
Crouse said calculations show such a freeze could cost the district a total $12.3 million in operating fund revenue from 2018 to 2022.
Our editors found this article on this site using Google and regenerated it for our readers.
