1 00:00:01,020 --> 00:00:01,880 Next, move on to 2 00:00:03,180 --> 00:00:04,340 item five, discussion items. 3 00:00:06,700 --> 00:00:09,120 We have the presentation from District 45. 4 00:00:24,120 --> 00:00:25,360 Charlie, can we grab the screen? 5 00:00:38,760 --> 00:00:39,660 Awesome. Thank you. 6 00:00:43,680 --> 00:00:44,700 All right. Good evening, everyone. 7 00:00:44,860 --> 00:00:47,160 Thank you for the opportunity to address the board. 8 00:00:47,440 --> 00:00:51,340 I previously spoke at the June 8th meeting just as a brief public 9 00:00:51,380 --> 00:00:51,860 comment. 10 00:00:52,840 --> 00:00:56,000 During those quick comments, I gave a little bit of information 11 00:00:56,480 --> 00:01:00,380 about some of the consequences for the unsuccessful March 12 00:01:00,440 --> 00:01:01,040 referendum 13 00:01:01,940 --> 00:01:05,500 for District 45 and 88 students and the community. 14 00:01:06,120 --> 00:01:09,420 And so the purpose of this evening is to provide a little bit more detailed 15 00:01:09,480 --> 00:01:13,200 information, partly about how we got here to the point where we 16 00:01:13,300 --> 00:01:16,460 are pursuing a limiting rate referendum, as well as 17 00:01:17,140 --> 00:01:20,140 implications of a successful and also unsuccessful referendum. 18 00:01:20,780 --> 00:01:22,400 We had an opportunity to hear from Dr. 19 00:01:22,600 --> 00:01:26,130 Barbanente a couple of weeks ago at our meeting, and so of course, the purpose 20 00:01:26,200 --> 00:01:30,190 here is to make sure that we can support one another's efforts 21 00:01:30,940 --> 00:01:34,060 in informing our community about what's at stake. 22 00:01:34,300 --> 00:01:37,900 So the very first slide is a 23 00:01:38,580 --> 00:01:38,940 quick 24 00:01:39,840 --> 00:01:43,200 five-minute overview video. So this is the 25 00:01:43,240 --> 00:01:46,960 10,000-foot view, and then I'll just go into a little bit more 26 00:01:47,020 --> 00:01:49,780 details about the information I've shared. 27 00:01:52,680 --> 00:01:56,220 Hello, I'm Brian Graber, superintendent of School District 45. 28 00:01:56,760 --> 00:02:00,620 And I'm Adam Parisi, Assistant Superintendent for Finance and Chief 29 00:02:00,700 --> 00:02:01,740 School Business Official. 30 00:02:02,800 --> 00:02:06,660 This fall, District 45 residents will be asked to consider a 31 00:02:06,720 --> 00:02:10,430 tax rate referendum to address the district's educational and 32 00:02:10,521 --> 00:02:11,519 financial needs. 33 00:02:12,380 --> 00:02:16,310 In the next few minutes, we'll provide an overview of our district, its financial 34 00:02:16,380 --> 00:02:20,240 position, what the proposal would fund, and what voters will be 35 00:02:20,360 --> 00:02:21,380 asked to decide. 36 00:02:22,660 --> 00:02:26,560 District 45 serves more than 3,100 students from pre-kindergarten 37 00:02:26,600 --> 00:02:29,940 through eighth grade across nine schools in Villa Park, 38 00:02:30,520 --> 00:02:33,230 Lombard, Oak Brook Terrace, and Elmhurst. 39 00:02:34,180 --> 00:02:37,970 More than 500 teachers and staff members support our students and 40 00:02:38,080 --> 00:02:41,700 help them become responsible, resilient, and ready to excel. 41 00:02:42,840 --> 00:02:46,680 In 2025, District 45 completed a community-informed 42 00:02:46,740 --> 00:02:50,300 strategic planning process and adopted a five-year 43 00:02:50,520 --> 00:02:54,500 student-centered plan. The plan provides clear direction for 44 00:02:54,540 --> 00:02:58,140 the district and reflects our commitment to helping every student 45 00:02:58,200 --> 00:03:01,560 grow, build confidence, and reach their full potential. 46 00:03:02,900 --> 00:03:06,280 District 45 has made important progress in recent years. 47 00:03:06,820 --> 00:03:10,520 Students are growing academically, schools are safer and more secure, 48 00:03:11,220 --> 00:03:14,680 full-day kindergarten is in place, and students and families have 49 00:03:14,800 --> 00:03:18,740 access to the programs and support they need across the district. 50 00:03:18,840 --> 00:03:22,640 In 2020, voters approved a bond referendum that funded the District 51 00:03:22,700 --> 00:03:26,530 45 Early Childhood Center, safety and security improvements, 52 00:03:26,680 --> 00:03:30,660 and other facility upgrades. As a bond referendum, that 53 00:03:30,700 --> 00:03:33,460 funding was limited to buildings and capital projects. 54 00:03:33,940 --> 00:03:37,670 It could not be used for the ongoing costs of operating our schools. 55 00:03:38,720 --> 00:03:42,200 Adam will provide an overview of the district's current financial position. 56 00:03:43,620 --> 00:03:47,540 District 45 receives less state and federal funding than 57 00:03:47,580 --> 00:03:50,060 the average Illinois school district. 58 00:03:50,100 --> 00:03:53,780 The district has worked hard to make the most of every dollar by 59 00:03:53,840 --> 00:03:57,560 keeping administrative costs low, controlling expenses, 60 00:03:58,000 --> 00:04:01,390 and focusing resources on students, teachers, and 61 00:04:01,500 --> 00:04:04,860 schools. However, funding has not kept 62 00:04:04,920 --> 00:04:08,340 pace with rising costs, including staffing, 63 00:04:08,960 --> 00:04:12,829 transportation, utilities, insurance, and 64 00:04:12,880 --> 00:04:16,161 classroom materials. For several years, District 65 00:04:16,320 --> 00:04:20,260 45 used available savings to help cover the difference 66 00:04:20,280 --> 00:04:22,590 between yearly revenue and expenses. 67 00:04:23,120 --> 00:04:26,650 This allowed the district to maintain student programs and 68 00:04:26,700 --> 00:04:30,060 services, but using savings to pay ongoing 69 00:04:30,080 --> 00:04:33,360 expenses is not a long-term solution. 70 00:04:34,160 --> 00:04:37,780 The district has reduced administrative positions, adjusted 71 00:04:37,940 --> 00:04:41,480 staffing and programs, extended the replacement schedule for 72 00:04:41,580 --> 00:04:45,120 student technology, and made many other 73 00:04:45,240 --> 00:04:48,960 spending reductions. Despite these steps, District 74 00:04:49,180 --> 00:04:52,740 45 continues to face a structural funding gap, 75 00:04:53,220 --> 00:04:57,140 meaning ongoing expenses are projected to exceed ongoing 76 00:04:57,220 --> 00:04:57,680 revenue. 77 00:04:58,620 --> 00:05:02,290 This fall's referendum asks voters to consider 78 00:05:02,360 --> 00:05:05,270 increasing the district's limiting tax rate by 79 00:05:05,540 --> 00:05:09,360 26.7 cents. The last limiting tax rate 80 00:05:09,420 --> 00:05:13,040 increase in District 45 was 26 years ago in 81 00:05:13,200 --> 00:05:17,100 2000. If approved, the proposal is expected 82 00:05:17,110 --> 00:05:20,200 to generate approximately $4.4 83 00:05:20,260 --> 00:05:22,960 million in additional yearly revenue. 84 00:05:23,640 --> 00:05:26,680 For a home with an estimated market value of 85 00:05:26,690 --> 00:05:30,680 $350,000, the projected tax 86 00:05:30,720 --> 00:05:34,570 impact would be approximately $299 87 00:05:34,980 --> 00:05:38,920 per year, or about $25 per month. 88 00:05:38,960 --> 00:05:42,560 The actual impact would vary based on a property's 89 00:05:42,660 --> 00:05:45,840 assessed value and applicable exemptions. 90 00:05:47,720 --> 00:05:51,180 The additional funding from an approved referendum would be used to 91 00:05:51,220 --> 00:05:55,060 restore recent cuts, including reading support, advanced 92 00:05:55,140 --> 00:05:58,540 academic programming, fine arts, clubs, 93 00:05:58,920 --> 00:06:01,720 intramural sports, and middle school musicals. 94 00:06:02,384 --> 00:06:06,364 It would also help our schools maintain reasonable, responsible class 95 00:06:06,384 --> 00:06:09,964 sizes, reduce the need for additional staffing and program 96 00:06:10,004 --> 00:06:13,464 reductions, and provide more reliable yearly funding. 97 00:06:14,924 --> 00:06:18,414 We're committed to fiscal responsibility and cannot continue 98 00:06:18,544 --> 00:06:22,004 pulling from shrinking savings to address rising costs. 99 00:06:22,904 --> 00:06:26,684 Without additional revenue, programs and positions cut for this school 100 00:06:26,764 --> 00:06:30,644 year would not be restored, and further reductions would need to be made 101 00:06:30,704 --> 00:06:31,944 in future school years. 102 00:06:33,134 --> 00:06:36,404 The referendum is a decision for District 45 voters. 103 00:06:37,004 --> 00:06:40,484 These are your schools. This is your community. 104 00:06:40,564 --> 00:06:44,454 Our goal is to provide you with the information you need to make an informed 105 00:06:44,484 --> 00:06:45,624 decision when you vote. 106 00:06:46,884 --> 00:06:50,244 We invite you to visit the district website to learn much more about the 107 00:06:50,284 --> 00:06:53,684 referendum and our plan to strengthen 45. 108 00:07:07,444 --> 00:07:08,284 There we go. Thank you. 109 00:07:09,164 --> 00:07:11,944 So I want to give just a little bit of information about some of the items that are 110 00:07:11,984 --> 00:07:15,364 shared here, and obviously provide an opportunity for questions at the end as 111 00:07:15,424 --> 00:07:19,224 well. Over the last several years, there's been a significant amount of work that 112 00:07:19,244 --> 00:07:22,834 has happened in the district. We've overhauled our ELA, math, and 113 00:07:23,024 --> 00:07:26,234 SEL programs and curriculum. We have 114 00:07:27,064 --> 00:07:30,744 significantly increased support for students, especially in the wake of COVID. 115 00:07:31,684 --> 00:07:35,604 We completed a five-year strategic plan just over a year ago and implemented 116 00:07:35,614 --> 00:07:37,884 that with a new mission, vision, and goals. 117 00:07:37,944 --> 00:07:41,434 Our mission is empowering all learners to cultivate hope, build confidence, and 118 00:07:41,544 --> 00:07:45,244 realize their full potential, and our vision is becoming a 119 00:07:45,264 --> 00:07:48,694 supportive and collaborative community where all students are responsible, 120 00:07:48,784 --> 00:07:52,584 resilient, and ready to excel. This year's strat plan 121 00:07:52,684 --> 00:07:56,424 also included, for the first time ever, a portrait of a D45 122 00:07:56,464 --> 00:08:00,264 grad, which I think is pretty important to D88 because we're sending them your way 123 00:08:00,284 --> 00:08:03,104 when they graduate from us. So those are the skills and 124 00:08:03,124 --> 00:08:07,084 competencies that we're hoping they've mastered by the time they leave 125 00:08:07,104 --> 00:08:09,804 our district and they head your way to Willowbrook. 126 00:08:10,564 --> 00:08:14,044 We've seen some significant gains as a result of this work. 127 00:08:14,484 --> 00:08:16,844 This is just one example of our progress. 128 00:08:16,924 --> 00:08:20,424 These are the most recent proficiency numbers that we have 129 00:08:20,844 --> 00:08:24,744 among our comparable districts, and we've selected comparable districts based 130 00:08:24,764 --> 00:08:28,724 on geography, geographic proximity, student demographics, and 131 00:08:28,764 --> 00:08:32,605 community resources. These same comp districts will be used in some 132 00:08:32,644 --> 00:08:34,804 later slides when we're talking about the tax rates. 133 00:08:35,164 --> 00:08:39,124 But among these same six districts, we have the highest level 134 00:08:39,164 --> 00:08:42,225 of math proficiency. Bless you. The second highest level of science 135 00:08:42,284 --> 00:08:46,164 proficiency. We're third in ELA, but we are trending in the right 136 00:08:46,184 --> 00:08:49,264 direction. We've actually, over the past four years, more than doubled the number 137 00:08:49,304 --> 00:08:52,514 of students that are reading at or above grade level. 138 00:08:52,613 --> 00:08:56,273 So while we're not where we want to be yet, that is certainly the direction that 139 00:08:56,284 --> 00:08:59,864 we're headed. And we recognize that a significant part of the 140 00:08:59,884 --> 00:09:03,804 success that we've experienced over the last several years is in part due to 141 00:09:03,844 --> 00:09:07,124 that 2020 bond referendum. There's been lots of questions about 142 00:09:07,884 --> 00:09:11,324 the limiting rate referendum and how this is different than the bond referendum, 143 00:09:11,424 --> 00:09:14,893 obviously the type of referendum that D88 is 144 00:09:15,144 --> 00:09:19,084 pursuing. The bond referendum, as you know, was limited to the 145 00:09:19,104 --> 00:09:22,944 facilities and the identified pieces that were part of that in 146 00:09:23,104 --> 00:09:26,124 2020. So it was a $30 million referendum. 147 00:09:26,164 --> 00:09:28,964 It had a very focused and narrow purpose. 148 00:09:29,004 --> 00:09:31,604 It's not something that we can use for ongoing expenses. 149 00:09:32,144 --> 00:09:35,404 A huge part of that was making room for full-day kindergarten. 150 00:09:35,544 --> 00:09:38,404 At the time, full-day kindergarten was not a state mandate. 151 00:09:38,504 --> 00:09:42,404 At this point now, it is, a year from now, that all K-8 districts 152 00:09:42,464 --> 00:09:45,754 are offering, or any district that has kindergarten is 153 00:09:45,804 --> 00:09:48,784 mandated to provide full-day kindergarten. 154 00:09:48,824 --> 00:09:51,794 So there's actually a lot of elementary schools that are, at this point, starting 155 00:09:51,824 --> 00:09:54,924 to scramble to figure out where they are going to come up with the resources to be 156 00:09:54,944 --> 00:09:58,084 able to provide this mandate. Fortunately, we're ahead of the game. 157 00:09:58,444 --> 00:10:02,264 Part of that also involved building the early childhood center, creating 158 00:10:02,324 --> 00:10:05,784 secured entryways, making sure that all of our 159 00:10:06,064 --> 00:10:09,244 facilities were up to date as far as accommodations and were accessible. 160 00:10:09,664 --> 00:10:11,484 But again, it had a very narrow purpose. 161 00:10:11,624 --> 00:10:14,924 Also, the timing of that referendum was very challenging. 162 00:10:14,984 --> 00:10:18,584 It was approved in March of 2020, about four 163 00:10:18,683 --> 00:10:22,344 days after the world shut down, and so as we moved forward 164 00:10:22,444 --> 00:10:26,144 with our obligations under that referendum, the 165 00:10:26,304 --> 00:10:29,784 costs skyrocketed. And so we 166 00:10:30,304 --> 00:10:34,164 worked very hard to still manage to move forward 167 00:10:34,244 --> 00:10:36,394 with that project in a responsible way, 168 00:10:37,944 --> 00:10:41,784 but there was no avoiding the supply chain and labor costs that were 169 00:10:41,844 --> 00:10:45,604 associated with that, which resulted in the project being over 170 00:10:45,684 --> 00:10:49,274 budget, not because there were add-ons, in fact, quite the opposite. 171 00:10:49,354 --> 00:10:51,094 There were places where things were cut back 172 00:10:51,944 --> 00:10:54,264 to try to come in as close as we could. 173 00:10:54,314 --> 00:10:57,144 $30 million is what was originally budgeted. 174 00:10:57,184 --> 00:10:59,214 We had $3 million in 175 00:11:00,224 --> 00:11:03,904 savings dedicated to capital projects, which then also went towards the 176 00:11:03,924 --> 00:11:07,634 project, and then we needed to pull an additional $3 million from our 177 00:11:07,644 --> 00:11:10,864 savings in order to finish funding that project. 178 00:11:11,264 --> 00:11:15,064 At the same time, it put us in a good position to achieve some of the 179 00:11:15,084 --> 00:11:16,744 results that we've seen recently. 180 00:11:18,364 --> 00:11:22,264 Overall, looking at those same comp districts, these are districts that 181 00:11:22,384 --> 00:11:26,144 we were performing higher than in many cases, but when you 182 00:11:26,224 --> 00:11:29,994 actually look at our relative tax rates, we are on the lower 183 00:11:30,164 --> 00:11:32,374 end compared to those same districts. 184 00:11:32,964 --> 00:11:35,324 The only district that actually happens to be lower than us 185 00:11:36,164 --> 00:11:40,144 is Addison 4. This is not one of these slides, but in the 186 00:11:40,204 --> 00:11:41,134 full presentation 187 00:11:42,444 --> 00:11:46,214 for this particular presentation, we take a look at tax base as 188 00:11:46,284 --> 00:11:49,824 well and how heavily residential District 45 is. 189 00:11:49,864 --> 00:11:53,174 We do not have the industrial infrastructure, and we don't have the commercial 190 00:11:53,204 --> 00:11:56,804 infrastructure of the other Willowbrook feeders, and so we do 191 00:11:56,824 --> 00:12:00,244 recognize that a significant portion of this tax burden is on the 192 00:12:00,424 --> 00:12:03,384 residents. At the same time, relative to these other communities, 193 00:12:04,464 --> 00:12:08,244 our taxes are lower than those same comps. 194 00:12:10,604 --> 00:12:14,224 This is another look at the ways that we do more with less. 195 00:12:14,464 --> 00:12:17,894 These are our revenues per student and our 196 00:12:17,944 --> 00:12:21,724 expenditures per student. And once again, you see 197 00:12:21,784 --> 00:12:25,544 relative to those same comparable districts that we showed the academic 198 00:12:25,704 --> 00:12:26,764 proficiency of, 199 00:12:27,624 --> 00:12:31,544 our revenue is actually relatively lower, as well as our 200 00:12:31,804 --> 00:12:35,584 expenditures per student. So once again, we do a lot 201 00:12:35,624 --> 00:12:37,454 with what we are provided, 202 00:12:38,264 --> 00:12:41,944 and are really strategic and careful about the spending that we 203 00:12:42,624 --> 00:12:46,584 do. This is just one example of the way that costs 204 00:12:46,644 --> 00:12:50,224 have significantly increased. We absolutely understand that costs for 205 00:12:50,264 --> 00:12:54,124 households have increased significantly. It's the same for a school district. 206 00:12:54,164 --> 00:12:58,024 So this is just one piece when we look at transportation, insurance, the 207 00:12:58,084 --> 00:13:01,764 cost of staffing, especially specialized staffing, and having to 208 00:13:01,964 --> 00:13:05,524 hire even through agencies. But this is one specific 209 00:13:05,904 --> 00:13:09,664 look. This is the per route rate for 210 00:13:09,784 --> 00:13:13,584 transportation. The numbers look a little fuzzy there, but you go 211 00:13:13,644 --> 00:13:16,744 from the far end in 2020-21, it was 212 00:13:16,754 --> 00:13:20,564 $262 per route. Now we are up to just over 213 00:13:20,574 --> 00:13:23,944 $450 per route. So in the course of 214 00:13:24,704 --> 00:13:28,584 six or seven years, we have a 71% 215 00:13:28,644 --> 00:13:31,324 increase in the costs of our transportation. 216 00:13:31,484 --> 00:13:32,324 Needless to say, 217 00:13:33,224 --> 00:13:37,134 revenue has not kept up, local taxes, CPI, have not 218 00:13:37,164 --> 00:13:40,774 kept up, and certainly state funding and mandated categoricals 219 00:13:42,204 --> 00:13:45,644 has not kept up with this. So these are costs that we have 220 00:13:45,684 --> 00:13:49,584 continued to cover, even though the costs 221 00:13:49,624 --> 00:13:52,424 have significantly exceeded the revenue that we've received. 222 00:13:53,224 --> 00:13:56,844 This is a look at the fund balance trend over the 223 00:13:56,904 --> 00:14:00,724 last 10 plus years. If you just take a look at the right 224 00:14:00,824 --> 00:14:04,404 side, there could be some significant and serious questions 225 00:14:04,414 --> 00:14:08,004 about the way that the fund balance amount has gone 226 00:14:08,244 --> 00:14:11,884 down from a high of just over 57% in 227 00:14:12,084 --> 00:14:16,064 2015, to projected to be just over 16% 228 00:14:16,164 --> 00:14:19,643 over the course of this last year. And that's a fair question. 229 00:14:19,704 --> 00:14:23,624 When you really break down a couple of key timelines, though, you can 230 00:14:23,684 --> 00:14:27,264 see the work that has happened, especially over the course of the last three or 231 00:14:27,304 --> 00:14:31,224 four years. From 2015 to 2019, that fund balance 232 00:14:31,264 --> 00:14:35,064 decreased about 17%. Now, I was not in the district at that time, 233 00:14:35,644 --> 00:14:39,474 but I do know from where I was, and from other area districts, 234 00:14:39,624 --> 00:14:43,153 that there was a push at that time to make sure that 235 00:14:43,524 --> 00:14:47,164 certain school districts were not carrying excess fund 236 00:14:47,244 --> 00:14:51,164 balances. The idea is that that is money that 237 00:14:51,204 --> 00:14:53,424 is intended to be used for student support. 238 00:14:53,904 --> 00:14:57,404 So that's not to say that there's an intentional spend down. 239 00:14:57,444 --> 00:14:59,784 Let's see something, find something that we can spend money on. 240 00:14:59,824 --> 00:15:03,674 But when there are unmet needs in the district, and you are sitting on what 241 00:15:03,684 --> 00:15:07,104 could be considered a surplus fund balance, that is not an 242 00:15:07,164 --> 00:15:10,873 irresponsible thing to say we're going to take that fund balance from right around 243 00:15:11,064 --> 00:15:14,964 57%, and over the course of those four years, heading 244 00:15:15,004 --> 00:15:18,744 into FY 19, it was down to just under 40%. 245 00:15:18,944 --> 00:15:22,564 At that point, had the district been able to stop, and let's say a pandemic didn't 246 00:15:22,604 --> 00:15:25,524 arrive, we wouldn't be having this conversation right now. 247 00:15:25,624 --> 00:15:29,504 But the reality is, over the next four years with the pandemic, and 248 00:15:29,564 --> 00:15:30,104 with the 249 00:15:31,064 --> 00:15:34,574 building project and that referendum, and that heading over budget and all of the 250 00:15:34,624 --> 00:15:38,284 things that we needed to fund to support students and make sure those 251 00:15:38,324 --> 00:15:41,684 projects were completed, again, over the next four years, there was another 252 00:15:41,704 --> 00:15:45,404 17% decrease. This is where it turns, though, 253 00:15:45,504 --> 00:15:48,664 because from 2023 to '26, now admittedly, that's a 254 00:15:48,704 --> 00:15:52,003 four-year span, a four-year span, and then a three-year span. 255 00:15:52,284 --> 00:15:54,544 So it's not the exact same amount of time. 256 00:15:54,964 --> 00:15:58,684 But over that last three-year span, you can see there's been a decrease of 257 00:15:59,064 --> 00:16:03,024 only 5%. So it's been a significant slowdown 258 00:16:03,084 --> 00:16:06,864 in accessing those reserves, and that's been intentional, and I can talk just a 259 00:16:06,944 --> 00:16:10,764 little bit about some of the actions that we've actually taken as a part of that. 260 00:16:11,184 --> 00:16:12,884 Okay. It's a little difficult to see here. 261 00:16:13,224 --> 00:16:17,084 But you can trust me on this, and you can actually see if you look at the online 262 00:16:17,104 --> 00:16:19,004 presentation, you can see all of the boxes. 263 00:16:19,664 --> 00:16:23,644 This is our organizational chart prior to 2020, just 264 00:16:23,684 --> 00:16:26,824 administrators. So this has all of the administrative positions. 265 00:16:26,864 --> 00:16:30,024 This does not include classroom teachers. This does not include TAs. 266 00:16:30,484 --> 00:16:32,224 This does not include secretaries. 267 00:16:32,554 --> 00:16:36,134 These are the administrative positions that existed pre-2020. 268 00:16:36,784 --> 00:16:40,544 Since 2020, those are the number of 269 00:16:40,564 --> 00:16:43,144 positions that we've eliminated at the administrative level. 270 00:16:43,224 --> 00:16:46,184 That's usually one of the first things people mention is 271 00:16:47,584 --> 00:16:51,104 the elimination of particularly central office 272 00:16:51,164 --> 00:16:54,644 administrative positions. All of these positions that were eliminated were at 273 00:16:54,684 --> 00:16:58,624 the central office level. There were six positions that were cut 274 00:16:58,824 --> 00:17:02,764 out of 20 positions, so that's a 30% decrease in positions. 275 00:17:03,684 --> 00:17:06,825 I want to be perfectly clear, one of the positions listed here is 276 00:17:06,864 --> 00:17:09,604 principals. There's more than one principal. 277 00:17:09,644 --> 00:17:13,424 So I'm not saying we cut 30% of our administrators, but we did 278 00:17:13,464 --> 00:17:16,164 cut 30% of the positions that we had there. 279 00:17:16,285 --> 00:17:18,184 You notice those individual cuts. 280 00:17:18,244 --> 00:17:20,315 Now there's more than six Xs there. 281 00:17:20,364 --> 00:17:22,764 That's because there's an X over that gray box. 282 00:17:22,825 --> 00:17:26,704 There was a proposed position that we actually interviewed for, and then ended 283 00:17:26,764 --> 00:17:30,004 up not moving forward with hiring in our special education department. 284 00:17:30,304 --> 00:17:31,464 We're not saying that that is 285 00:17:32,304 --> 00:17:36,144 an elimination of a position, but it's certainly cost savings considering that the 286 00:17:36,224 --> 00:17:39,004 need was identified and we chose not to move forward with that. 287 00:17:39,384 --> 00:17:43,304 And actually, since our presentation in March, the 288 00:17:43,504 --> 00:17:46,044 X that you see right in the middle at the top, that was the assistant 289 00:17:46,104 --> 00:17:48,244 superintendent for human resources position. 290 00:17:48,884 --> 00:17:51,604 We don't have an assistant superintendent for human resources anymore. 291 00:17:51,694 --> 00:17:54,224 The person in that position resigned last year. 292 00:17:54,264 --> 00:17:58,064 We reclassified that as a director level position in order to achieve an 293 00:17:58,104 --> 00:18:01,764 additional $50,000 in savings. So you're kind of looking at the 294 00:18:01,804 --> 00:18:04,104 assistant superintendent for human resources again. 295 00:18:04,184 --> 00:18:06,164 So I'm picking up some of those responsibilities. 296 00:18:06,244 --> 00:18:09,664 So Mike, I'll be reaching out to you when we need to collaborate a little bit. 297 00:18:09,724 --> 00:18:13,334 So I'm back to doing some of those responsibilities again, that is the 298 00:18:13,384 --> 00:18:16,664 position I was previously in, and again, as cost savings. 299 00:18:16,784 --> 00:18:19,384 So I'm going to go back just a second again. 300 00:18:19,464 --> 00:18:23,044 Those are the existing positions, those are the eliminated positions, 301 00:18:23,424 --> 00:18:26,984 and that's what we're left with. So a significant decrease at the central office 302 00:18:27,044 --> 00:18:29,004 level that took place over several years. 303 00:18:29,044 --> 00:18:32,144 So this is not something that all of a sudden happened 304 00:18:32,584 --> 00:18:35,304 and changes were made within the last year. 305 00:18:35,404 --> 00:18:38,364 These are changes that have been made over the last couple of years. 306 00:18:39,264 --> 00:18:42,793 There have been understandable questions about district accountability, not only 307 00:18:42,793 --> 00:18:45,994 accountability for the decisions that have been made up to this point, but also 308 00:18:46,024 --> 00:18:49,844 moving forward. So just wanted to do just a quick snapshot of some of the 309 00:18:49,904 --> 00:18:53,054 things that have happened in the past that are occurring right now, and also moving 310 00:18:53,144 --> 00:18:57,044 forward in the future. We have consistently, across the past, had a low 311 00:18:57,144 --> 00:18:58,944 per-pupil spending and revenue. 312 00:18:59,764 --> 00:19:03,544 We have, over the past couple of years, reduced administrative 313 00:19:03,564 --> 00:19:07,054 positions. Of course, you know there's a requirement for annual 314 00:19:07,184 --> 00:19:10,444 audits, so when there are questions about whether or not we've been audited, the 315 00:19:10,544 --> 00:19:12,574 answer is, by law, every single year 316 00:19:13,544 --> 00:19:17,424 our finances are audited, and those results are published. 317 00:19:17,824 --> 00:19:21,584 Currently, right now, we continue to make targeted 318 00:19:21,704 --> 00:19:25,274 revenue and savings decisions. We've made some adjustments to our 319 00:19:25,424 --> 00:19:29,274 fees. We actually modified our school lunch program at a 320 00:19:29,284 --> 00:19:32,824 couple of our schools so that we can continue to provide the lunch to 321 00:19:32,884 --> 00:19:36,804 students, but being reimbursed in a different way, at a different rate. 322 00:19:37,544 --> 00:19:41,144 Those are steps that we're taking, as well as some targeted 323 00:19:41,244 --> 00:19:44,504 cuts and reductions. But we're really trying to look at anything, energy 324 00:19:44,584 --> 00:19:47,704 efficiencies, lunch programs fees, those types of things. 325 00:19:47,944 --> 00:19:51,844 Another piece that we did recently, as far as accountability, is when the 326 00:19:51,884 --> 00:19:55,614 referendum was not successful in March, we did move forward with 327 00:19:55,664 --> 00:19:59,414 those identified reductions. Those were not easy decisions to make, 328 00:20:00,044 --> 00:20:03,784 to cut 17 and a half staff. In fact, over the last couple of 329 00:20:03,884 --> 00:20:07,864 weeks, we've reduced two additional positions as we've looked at 330 00:20:07,924 --> 00:20:09,694 enrollment heading into the current year. 331 00:20:10,164 --> 00:20:13,904 So that's 19 and a half positions that have been reduced, as well as those clubs 332 00:20:13,924 --> 00:20:17,414 and activities that we've talked about, reading support for students, 333 00:20:17,904 --> 00:20:21,424 and advanced academics. So we did follow through with those, 334 00:20:21,604 --> 00:20:21,984 and 335 00:20:22,964 --> 00:20:26,474 now that our finance meetings are actually being recorded in the same way that our 336 00:20:26,524 --> 00:20:29,704 regular board meetings are, that's a step that we've taken over the last year. 337 00:20:30,164 --> 00:20:32,424 Moving forward, we'll continue to have those audits. 338 00:20:32,544 --> 00:20:36,404 We're dedicated to reasonable and responsible class sizes. 339 00:20:36,484 --> 00:20:37,544 We're looking at not 340 00:20:38,784 --> 00:20:40,864 trying to have the smallest classes possible. 341 00:20:40,904 --> 00:20:42,844 We know that that's not fiscally responsible. 342 00:20:42,884 --> 00:20:46,334 We also want to make sure that our classes are reasonable, and that we're not 343 00:20:46,404 --> 00:20:49,944 talking about 30, 35 kindergartners in a classroom together as well, so 344 00:20:49,984 --> 00:20:51,944 balancing that reasonable and responsible. 345 00:20:52,384 --> 00:20:56,004 We're moving forward with the data dashboard, not just academics, but finances as 346 00:20:56,064 --> 00:20:59,904 well. And we're talking about at least annual, if 347 00:20:59,964 --> 00:21:03,634 not semi-annual, special kind of state of the district presentations 348 00:21:03,964 --> 00:21:05,323 speaking to our finances. 349 00:21:07,184 --> 00:21:08,584 So this is kind of the 350 00:21:09,464 --> 00:21:11,864 most challenging slide because this gets to 351 00:21:12,924 --> 00:21:16,304 the reality of what would happen if there is 352 00:21:16,424 --> 00:21:20,404 another unsuccessful referendum, and if we need to continue making cuts, 353 00:21:20,454 --> 00:21:22,804 and it's something that we're prepared to do. We did it in March. 354 00:21:23,544 --> 00:21:25,644 We can do it again this fall as well if we need to. 355 00:21:25,724 --> 00:21:29,644 But if a referendum is not successful, those reductions 356 00:21:29,664 --> 00:21:33,124 that were made previously would not be restored, those classroom teachers, reading 357 00:21:33,204 --> 00:21:35,884 support, advanced academics, extracurricular activities. 358 00:21:36,344 --> 00:21:37,964 We'd be looking at additional reductions. 359 00:21:38,004 --> 00:21:41,224 This past year, we made about $1.7 million in reductions. 360 00:21:41,364 --> 00:21:45,044 We'd need to make at least that amount heading into next year, 361 00:21:45,444 --> 00:21:46,964 and additional for the following year. 362 00:21:46,984 --> 00:21:50,344 If we actually wanted to get to where we need to be as far as fund balance, we're 363 00:21:50,384 --> 00:21:53,644 looking at an additional $4 million in cuts. 364 00:21:54,144 --> 00:21:57,264 So that's not something that we're going to be doing in a year. 365 00:21:57,934 --> 00:22:01,784 But certainly, over the course of a couple of years, even staff 366 00:22:02,704 --> 00:22:05,864 retiring through attrition, things like that, making some of those changes, but we 367 00:22:05,884 --> 00:22:09,864 would be prepared to make at least another $1.7, probably 368 00:22:09,944 --> 00:22:13,784 closer to $2 million worth of cuts heading into next year if it's not 369 00:22:13,844 --> 00:22:17,504 successful. That would include teaching and 370 00:22:17,544 --> 00:22:21,344 programming reductions, additional extracurricular activities, 371 00:22:21,384 --> 00:22:25,164 and also looking at some significant redistricting, and probably school 372 00:22:25,204 --> 00:22:28,964 closures as well. The alternative to that would 373 00:22:29,024 --> 00:22:30,174 be increasing revenue, 374 00:22:31,203 --> 00:22:34,844 and so the proposed referendum, as we talked about, 26.7 cent tax rate 375 00:22:34,944 --> 00:22:37,394 increase, $4.4 million annually, 376 00:22:38,224 --> 00:22:40,684 and that would be the impact as listed there. 377 00:22:43,044 --> 00:22:46,424 The graph on the left, once again, that's a repeat of the graph that was shown 378 00:22:46,484 --> 00:22:49,994 earlier. That shows what our current tax rate is as compared to our 379 00:22:50,084 --> 00:22:53,784 comparable districts. The graph on the right shows what it would be 380 00:22:53,884 --> 00:22:57,843 if the referendum is successful. So we're still in the same 381 00:22:57,984 --> 00:23:01,364 spot in terms of relative to those 382 00:23:01,404 --> 00:23:05,204 peers. The idea here is that the district is not 383 00:23:05,244 --> 00:23:07,644 trying to get as much money as possible. 384 00:23:07,944 --> 00:23:11,804 The district is trying to be very sensitive to the financial 385 00:23:11,844 --> 00:23:15,634 situation of our families and our communities, but also make sure that it is able 386 00:23:15,804 --> 00:23:19,124 to obtain the revenue needed to restore some of these cuts. 387 00:23:19,194 --> 00:23:22,704 So this is what we'd be looking at in terms of a 388 00:23:22,784 --> 00:23:23,904 successful referendum. 389 00:23:24,784 --> 00:23:28,424 We know data shows and studies show the correlation 390 00:23:28,464 --> 00:23:31,374 between property values and funding towards schools. 391 00:23:31,424 --> 00:23:35,364 Every dollar towards schools increases the aggregate value 392 00:23:35,424 --> 00:23:39,084 of homes by $20. We would be avoiding those additional 393 00:23:39,124 --> 00:23:42,744 cuts, knowing that we have more predictable financial future, 394 00:23:43,324 --> 00:23:47,284 looking at those class sizes, and then restoring those pieces, reading support, 395 00:23:47,344 --> 00:23:51,213 advanced academics, clubs and activities, as well as the fine 396 00:23:51,264 --> 00:23:55,164 arts. So our goal is to make sure that everybody has the information that they 397 00:23:55,184 --> 00:23:56,684 need to make an informed decision. 398 00:23:56,744 --> 00:24:00,414 So at the very least, we've planned 10 town halls, 399 00:24:00,564 --> 00:24:03,744 one for each of our schools, plus a virtual option. 400 00:24:03,784 --> 00:24:07,724 The first one has passed already. It was actually last week at Westmoor. 401 00:24:07,864 --> 00:24:11,594 Our next one is Wednesday night, but you can find the dates for those 402 00:24:11,684 --> 00:24:15,384 on our website, and we'll also be open to any 403 00:24:15,424 --> 00:24:17,904 invitations that we have so that we can provide information. 404 00:24:17,924 --> 00:24:21,364 We'll be providing a presentation to Chamber of Commerce, to 405 00:24:21,424 --> 00:24:22,004 Rotary. 406 00:24:22,904 --> 00:24:26,664 Actually, just as of today, we're going to be there on Friday night 407 00:24:27,824 --> 00:24:29,944 at Willowbrook for- 408 00:24:30,916 --> 00:24:34,256 Is it blue and silver? Silver and blue? Silver and blue night. 409 00:24:34,756 --> 00:24:38,116 Just to provide that information and just make sure this doesn't come as a 410 00:24:38,176 --> 00:24:41,286 surprise. We did receive a tremendous amount of feedback 411 00:24:42,076 --> 00:24:45,876 from community members saying that a lot of people 412 00:24:46,116 --> 00:24:48,696 were not aware of what was at stake. 413 00:24:48,776 --> 00:24:49,476 And so 414 00:24:50,636 --> 00:24:54,266 this is what would be voted on actually tomorrow night at our board meeting, the 415 00:24:54,356 --> 00:24:58,216 referendum. So that's it. That's where you can find more information. 416 00:24:58,256 --> 00:25:01,076 There are videos, there's a significant FAQ, 417 00:25:01,936 --> 00:25:05,256 and there's lots more information about the implications, a tax calculator, and all 418 00:25:05,276 --> 00:25:08,936 those pieces. So thank you again for the opportunity to 419 00:25:08,976 --> 00:25:09,416 present. 420 00:25:10,316 --> 00:25:11,016 Any questions? 421 00:25:14,096 --> 00:25:14,516 I have one. 422 00:25:14,796 --> 00:25:15,036 Yes. 423 00:25:17,436 --> 00:25:21,056 I have to admit, maybe I should know this, but with the 424 00:25:21,416 --> 00:25:22,296 mandate for the full 425 00:25:24,936 --> 00:25:25,936 day kindergarten for- 426 00:25:26,456 --> 00:25:26,636 Yes 427 00:25:26,676 --> 00:25:27,036 ... kids coming up- 428 00:25:27,316 --> 00:25:27,536 Mm-hmm 429 00:25:27,556 --> 00:25:27,556 ... 430 00:25:28,376 --> 00:25:31,376 has the state provided any additional funding to cover that cost? 431 00:25:31,876 --> 00:25:35,315 Not at this time, no. And I don't anticipate that there will be. 432 00:25:35,376 --> 00:25:39,056 There has been nothing attached to that specifically to say that that's going to 433 00:25:39,096 --> 00:25:42,896 help support that work. So there's actually a number of districts talking about 434 00:25:42,936 --> 00:25:45,716 bond referendums specifically for that purpose. 435 00:25:45,796 --> 00:25:49,436 So at least District 45 had the foresight to do the 436 00:25:49,776 --> 00:25:51,046 early childhood to be able to 437 00:25:52,976 --> 00:25:55,826 make the adjustments within the buildings to be able to accommodate. 438 00:25:55,896 --> 00:25:59,116 Correct. And that's a great point, because a lot of times because the early 439 00:25:59,196 --> 00:26:02,756 childhood center was the building that was built, there was the thinking that the 440 00:26:02,796 --> 00:26:05,196 referendum was entirely about the early childhood center. 441 00:26:05,296 --> 00:26:08,755 We had an existing early childhood program, it was just in the buildings. 442 00:26:08,856 --> 00:26:12,256 So in order to create a dedicated space, then we were able to pull those 443 00:26:12,296 --> 00:26:16,136 classrooms out of the buildings, and then that made the space for 444 00:26:16,476 --> 00:26:19,896 full day kindergarten at most of our facilities, and then we needed to do some 445 00:26:19,916 --> 00:26:23,036 building additions. But even that was very strategic. 446 00:26:23,136 --> 00:26:26,036 That was intended to be the first bite of a pretty 447 00:26:26,136 --> 00:26:29,896 significant facilities plan. And the reality 448 00:26:30,056 --> 00:26:33,556 is, we've foregone everything since then, because of cost. 449 00:26:33,566 --> 00:26:37,146 So we were able to take the first bite, and now any other pieces are just 450 00:26:37,176 --> 00:26:41,016 waiting for us to be in a financial position where we could move forward with 451 00:26:41,076 --> 00:26:43,596 that, and that's not anything that would happen for several years. 452 00:26:44,876 --> 00:26:45,036 And 453 00:26:46,516 --> 00:26:50,096 I'm sure that District 45 is like most districts, where 454 00:26:50,716 --> 00:26:54,576 you're not getting your full funding for your categoricals like 455 00:26:54,596 --> 00:26:58,216 transportation, special ed transportation, and all the rest. 456 00:26:58,436 --> 00:27:01,836 Correct. Yeah. The percentages are actually decreasing while the costs are 457 00:27:01,896 --> 00:27:04,536 increasing. So yeah, we're not anywhere close to that. 458 00:27:04,576 --> 00:27:07,916 We're at about 83% adequacy, so we are 459 00:27:07,956 --> 00:27:11,816 regularly operating with $7 million less than what the 460 00:27:11,836 --> 00:27:15,616 state says we actually should have in order to function. 461 00:27:15,656 --> 00:27:19,216 That doesn't mean we're running a $7 million deficit, but when the state looks at 462 00:27:19,256 --> 00:27:22,666 our needs based on our student population and programs and those types of 463 00:27:22,696 --> 00:27:26,336 things, they say that we should be operating close to $50 464 00:27:26,376 --> 00:27:30,236 million, and we're regularly operating at $43 million. 465 00:27:30,316 --> 00:27:30,456 So... 466 00:27:31,036 --> 00:27:34,656 So underneath evidence-based funding formula, 467 00:27:34,876 --> 00:27:36,786 is District 45 a tier two then? 468 00:27:36,796 --> 00:27:37,396 We're a tier two. 469 00:27:37,556 --> 00:27:37,676 Yeah. 470 00:27:37,736 --> 00:27:41,276 Mm-hmm. We're one of eight tier one or tier two elementary 471 00:27:41,336 --> 00:27:45,016 districts in DuPage. I believe there's 42 districts, and we are one of 472 00:27:45,216 --> 00:27:49,016 eight that is at tier one and two. Compared to some of our area districts, 473 00:27:49,116 --> 00:27:52,616 we're operating at 83% of our adequacy. 474 00:27:52,736 --> 00:27:55,566 Some districts around us are operating at 140%, 475 00:27:55,756 --> 00:27:59,696 160%. We're at 80%. So we're still operating 476 00:27:59,816 --> 00:28:01,696 very lean, even as it is. 477 00:28:02,316 --> 00:28:04,936 Because I was at a meeting on Friday. 478 00:28:06,016 --> 00:28:08,926 We were talking, or it was, I don't know, maybe it wasn't 479 00:28:08,936 --> 00:28:10,856 Friday. One day last week. 480 00:28:10,936 --> 00:28:11,136 Mm-hmm. 481 00:28:11,696 --> 00:28:15,436 We were talking about the evidence-based funding, and the 482 00:28:15,496 --> 00:28:19,336 fact that even though when the state says they quote "increase funding for the 483 00:28:19,396 --> 00:28:19,616 state," 484 00:28:20,466 --> 00:28:23,576 they're not talking about tier two, they're not talking about tier three, they're 485 00:28:23,636 --> 00:28:27,176 not talking about tier four. That money is going to tier-one 486 00:28:27,196 --> 00:28:28,316 districts only. 487 00:28:28,416 --> 00:28:32,256 Okay. Yeah, I did read just recently that despite 488 00:28:32,316 --> 00:28:36,036 increases at the state level, I think significantly because of the 489 00:28:36,096 --> 00:28:39,636 increased costs that districts are facing, even though 490 00:28:39,656 --> 00:28:43,556 the state is increasing the actual dollars that 491 00:28:43,576 --> 00:28:47,376 they're providing, more and more districts are falling further and 492 00:28:47,475 --> 00:28:51,196 further from adequacy just because of the actual costs of 493 00:28:52,016 --> 00:28:53,216 operating a school district right now. 494 00:28:53,556 --> 00:28:56,216 Well, because the school districts are limited to CPI or- 495 00:28:56,436 --> 00:28:56,646 Mm-hmm 496 00:28:56,646 --> 00:29:00,596 ... 5%, whichever is less. So in most years, we're lucky if we're getting 497 00:29:00,636 --> 00:29:04,316 2 or 3%, whereas our costs are going up 5% or 498 00:29:04,356 --> 00:29:04,756 more. 499 00:29:04,796 --> 00:29:05,366 Right. Absolutely. 500 00:29:05,366 --> 00:29:05,956 Just like homeowners. 501 00:29:06,316 --> 00:29:09,676 Absolutely. And the transportation is a perfect example, 502 00:29:09,736 --> 00:29:13,206 70% over the last seven years, so an average of 10%. 503 00:29:13,336 --> 00:29:15,576 Obviously, CPI is not keeping up with that. 504 00:29:15,636 --> 00:29:17,496 Certainly, state funds aren't keeping up with that. 505 00:29:17,876 --> 00:29:19,436 Insurance has been very similar. 506 00:29:20,456 --> 00:29:23,615 And the specialized needs of students and just the costs of supporting them. 507 00:29:23,696 --> 00:29:27,386 Staffing costs have gone up significantly, not because we're giving monumental 508 00:29:27,396 --> 00:29:30,636 raises to staff members, but because we are needing 509 00:29:30,716 --> 00:29:31,426 to 510 00:29:33,156 --> 00:29:36,996 get the participation of more and more agency hires that are 511 00:29:37,376 --> 00:29:40,886 coming at a premium cost. So just the overall cost of education. 512 00:29:41,226 --> 00:29:44,566 Supplies, materials, everything is becoming much more expensive, the same way that 513 00:29:44,596 --> 00:29:48,566 they are for homeowners. Right? So we know that we're not in a 514 00:29:48,596 --> 00:29:52,136 unique situation. It's just compounded significantly when you're talking about 515 00:29:52,976 --> 00:29:54,916 a $50 million budget. 516 00:29:55,796 --> 00:29:56,096 Okay. 517 00:29:57,196 --> 00:29:58,545 I don't have any other questions. Is there any other? 518 00:29:58,545 --> 00:29:58,756 Thanks. 519 00:29:59,796 --> 00:30:01,556 Okay. Thank you so much for coming. 520 00:30:01,676 --> 00:30:03,696 Awesome. All right. Thank you very much for the time. I appreciate it. 521 00:30:05,396 --> 00:30:07,276 That's yours. 522 00:30:09,276 --> 00:30:09,536 Okay