FAQ About the 2022 Education Referendum

In our last newsletter, District 153 announced the unexpected and disappointing revenue totals resulting from our successful 2022 education funding referendum. Since then, we have received many good questions. Below, we have attempted to consolidate and answer those questions.

Q: Will residential taxpayers tax's go up the same amount we had anticipated? I think there was a calculator on the district website last year this time, would that still reflect the increment my taxes will go up or will my taxes go up less than expected?

A: The district’s Equalized Assessed Value (EAV) is the product of two things: the assessed value of all property in the district times the multiplier. Our EAV from 2020 to 2022 went down from $348 million to $317 million, mostly due to the multiplier going down. It is important to note that our area did not have a tax reassessment during this time, so the district EAV was adversely affected in large part by the multiplier going down.

An individual household’s taxes are affected by their EAV and the tax rate. Each year, the district asks for a certain amount of taxes to operate (called the “tax levy”) and the County Treasurer then calculates individual tax bills. Given that the tax rate did rise as a result of the referendum, it is fair to assume individual household tax bills will rise, too.

Q: I am confused. What is the multiplier?

A: Great question! In Illinois, residential property is supposed to be assessed at 33 1/3 % of its market value. In Cook County, residential property has been assessed at 10% of market value, so to get these Cook County assessments up to the state-mandated 33.3% the Illinois Department of Revenue calculates a “multiplier.” The role of the multiplier is to ensure that assessed properties throughout the state ultimately end up at 33.3% of market value. So, in a perfect world, Cook County would see a multiplier of roughly 3.1 each year. However, the multiplier varies as assessed values are compared to actual selling prices, so the multiplier can go up and down. As it does, so, too, does EAV.

Q: Is this an issue/problem for just this year or future years as well?

A: The negative news has long-term implications for our district’s revenues. The reason is that each year, we can only ask for a tax levy increase that is equal to 5% more than last year’s tax collections (called the “tax extension”) or the rate of CPI for the year, whichever is less. We expected our 2022 extension to yield about $19.5 million, and the number is closer to $17.8 million. So, when we ask for the 2023 levy, we can only increase our request by, let’s say, 5% above $17.8 million, instead of 5% above what we thought would be $19.5 million. In 2023 alone, the difference is $850,000 less in revenue that we can collect, and that compounds each and every year thereafter.

Q: Does this mean the board is going to try to pass another referendum?

A: It is far too early to answer that question. We are negotiating this year with the union, and the outcome of that will enable us to see what our long-term expenditures will look like.

Q: What does this mean for the district's budget this year? What about future years?

A: This year we should be able to cover our expenses, but we are not able to add to our fund balances (i.e., our savings account), nor address our aging buildings as we had hoped to be able to do. Also, we know that our costs will rise over time due to salaries, as we are in a teacher shortage and need to compete for talent, and rising health care costs. We have been told by our insurance agent to expect 8-12% premium increases annually for the foreseeable future. This has big implications for our ability to cover our costs.

Q: How can the district’s EAV be going down when my and all of my neighbor’s recent tax assessments went up so much?

A: The $317 million in district EAV is from tax year 2022 (which we collect in 2023). The reassessment that you received this summer is for tax year 2023, which we will collect in 2024.

Q: Is the district going to be getting any tax money from the new casino?

A: No. The new casino is not in our school district.

Q: How will this affect jobs in the school district?

A: The long-term impact of the decreased revenues will have to be determined through a cash-flow analysis. The outcome of the 2024 negotiations will play a role in this decision.

Q: How can we change existing funding to address this problem long-term? What legislative changes are needed?

A: That’s a good question for which there are no easy answers.

PMA Cook's Night Out at Chipotle, Nov. 8

If you grab dinner at Chipotle in Homewood (17700 Halsted St.) between 4 and 8 pm on Wednesday, November 8, PMA gets a portion of the profits! All of you have to do is:

- Show the flyer to staff when checking out.
- Use the code J2EDF9B if you order with the Chipotle app for in-store pick-up.

Come for Aladdin...Stay for the Cake!

If you’ve ever been to a PMA bundt cake sale at a concert or performance, you know we sell out fast. So we're trying something new this year: pre-sales!

Don’t miss out — reserve your favorite Nothing Bundt Cake “bundtlets” now and pick them up at the James Hart production of Aladdin, Jr. on November 16 and 17.

All proceeds from the sales will support PMA's work and our young musicians across the district. Learn more about what PMA does and start shopping at HomewoodPMA.org/cake! Pre-sales close November 13.

We post notices and information about activities and events that may interest your family on our homepage in our virtual backpack. Don't forget to check it from time to time!

Click Here to view the Homewood School District 153 News - October 27, 2023