Changes in local property value and student enrollment could potentially provide less funding for the district.
“Our property values are going up and our student enrollment is going down, and when that occurs the state divides the property value by the number of kids and says you’ve got that much wealth locally on students, but the tax cap doesn’t allow us to take all of that,” said Jay Strang, Chief School Business Official at District 204.
If this trend continues, the district could lose about $3 million a year in general state aid, which would shift from about $24.5 million to $11.5 million in five years.
Along with about 70 percent of the state of Illinois, District 204 is part of the foundation level that receives general state aid.
The district’s biggest concern is shifting from the foundation level to the alternative grant level.
“In the alternative level, we’ll go from about $1,000 per student from the state in foundation to about $500 per student. So we’ll flatten off, we won’t decline anymore because you’re stuck at that level,” added Strang.
In order to remain at the foundation level, the district’s local resources must provide less than 93 percent of the foundation level, meaning the dollar amount that the state deems necessary to educate each student, which is currently $6,119.
While the forecast is strictly based on assumptions, the district will continue to monitor the consumer price index and student attendance levels.
Naperville News 17’s Rachel Pierson reports.
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