• Minutes of the District 38 school board, January 2005 to April 2007, combined into one document

Operating Expenditure per Pupil, District 38
Source: Illinois State Board of Education,
Illinois Interactive Report Card

And note that these expenses of more that $15,000 per students are for operating costs alone, and do not include capital costs!

What's driving these skyrocketing costs? It's clearly D38's rapidly escalating instructional spending:

Operating Expenditure per Pupil, District 38
Source: Illinois State Board of Education,
Illinois Interactive Report Card

An amazing discovery about the spending spree is that D38, with a single, small neighborhood K-8 school, is closing in on matching per student costs with New Trier, a huge, sophisticated high school!

Operating Expenditure per Pupil, District 38
Source: Illinois State Board of Education,
Illinois Interactive Report Card

"Following the Dollar," Wilmette Life, December 14, 2006:

Higher Taxes Hurt Property Values

• How Does A Tax Increase Affect Property Values? "... Many factors affect the value of real estate, property taxes included. A common myth spread by proponents of higher taxes is that higher property taxes increase property values. This has no basis in fact. When property taxes are considered independent of other factors, it becomes clear that higher property taxes decrease property values. ..."

• Increasing Property Taxes Hamper Real Estate Market by Dalia Naamani-Goldman, Daily Northwestern, October 25, 2002

• New York Times, October 20, 2005: "If you really wanted to push housing prices down, you would increase taxes on housing."

School District Finances

• The Public School Money Drain, editorial, Chicago Tribune, January 3, 2002. "... Too many school districts ... are unwilling to change the spending style to which they've become accustomed. They resist adjusting the often extremely generous and comprehensive benefit packages offered to teachers, and are loath to demand more rigorous work schedules or restructured curricula for the higher pay. ..."

• No Justification For School District Splurging, editorial, Chicago Sun-Times, June 1, 2005. "... you can only feel one way: mind-blowing outrage. ... It's school districts across the state. ... Schools need to start acting like businesses because their stockholders -- the taxpayers -- are wondering how their money is being spent."

• The Public Schools' Dirty Little Secret by Jay P. Greene & Marcus A. Winters, July 2, 2004. "More money for public education? Like apple pie and the flag, everyone's for it. But, it turns out, only because most Americans don't know how much cash the schools already get. And, a new survey found, when they hear how much public schools now spend per pupil, a clear majority think schools already have enough to do the job. ..."

• Does the Tax Cap Hurt Public Education?
  "There's been a lot of talk from school districts about how harmful PTELL (the tax cap) is to their budgets. It has been claimed that school districts "lose" money because of the tax cap, or that the tax cap prevents districts from collecting money already approved by voters. These statements simply aren't true." Read more!

• The Illinois School Spending Crisis: Bankrupting Taxpayers, Destroying Property Values by Jack Martin, Chairman, Taxpayers for Good Government. "The educational establishment says they need more money to fund their programs and the growing student populations. They cry to the legislature that the tax caps have hurt them and cost the schools millions of dollars that they would have been able to levy without voter approval or public accountability. The plain fact is this: since tax caps were passed in 1991 through the 2004/05 school year, the schools in the State of Illinois have received over ten billion dollars ($10.69 billion) in additional revenue, more than doubling the revenue for education. This gusher of public funding and support for education has doubled and is a 116 percent increase since the tax caps became law. Yet, the education bureaucrats claim this is not enough. They cannot explain why this amount, which is up nearly two and a half times the rate of inflation, is insufficient."

• Illinois schools are NOT Poorly Funded: Testimony to Illinois Senate Education Committee by Chris Jenner, member of Cary school board. "Let me cite a few more rankings from the same study, the NEA's Rankings & Estimates:
      * Illinois ranks 14th in public school revenue per student...
      * Illinois ranks 3rd in public school revenue as a percentage of combined state and local revenues
      * Illinois ranks 25th in state / local spending on education as a percentage of all spending (above national average)
      * Illinois ranks 11th in K-12 public school spending per student...
  Illinois schools are NOT poorly funded."

• Introducing the "Golden Handcuff Award" by Bill Zettler. "Since teachers have the Golden Apple Award I thought it only appropriate to have a similar award for politicians called the 'Golden Handcuff Award.' Whereas the Golden Apple recognizes the highest achievement in the classroom, the Golden Handcuff would recognize those politicians with the highest achievement in garnering political contributions from the teacher unions. I call it the Golden Handcuff because once you have received money from the unions you are no longer able to lift anything heavier than a five-figure contribution check. The heavy lifting involved in curbing six-figure teacher salaries, $300,000 administrators salaries, multi-million dollar pensions, endless property tax increases, etc. cannot be done when you are encumbered with the Golden Handcuffs."

• Citizens For Reasonable And Fair Taxes (CRAFT)
  A wealth of resources from this tax-fighting group that serves as an umbrella for people all over the northern Chicago suburbs who are working to defeat unreasonable school tax hikes.

"Ratcheting" and Salaries

• The Myth of the Underpaid Teacher, Family Taxpayer Network. "Despite the fact that taxpayers have continued to increase their funding of the public schools at substantially higher levels than the rate of inflation, those responsible for the management of these schools spend recklessly -- including on teacher and administrator pay increases. And let's be clear about one of the reasons why that's happening. It's called ratcheting. Teachers and administrators all over the state check out each other's salaries at www.thechampion.org and then clamour for more for themselves. Forget student performance or whether the market value of their job fits their demands. None of that is important. They want more and they want it now -- and if taxpayers don't do more, that's when the threats start. Cries of poverty are combined with warnings that extracurriculars will be cut or teachers will strike. No proof is ever given that what's already being spent isn't enough. Full financial transparency is avoided by the public school system at all costs. When some of the facts do get leaked, hardworking taxpayers are disgusted."

• The New Math: How a 4.63% Raise Becomes an 8.5% Raise
  "The Chicago Tribune was good enough to examine the [Chicago] contract using a hypothetical case of a 5-year veteran with a Master's degree. This teacher, whose current salary begins at $44,256/yr ends up making $59,820/yr after four years. But how can this be? After all, one would need an annual increase of over 7.82% to reach this final pay. That's almost twice the advertised amount. Simply put, the 4% figure is a distortion based on the details of how teacher pay is actually computed. Publication of this low number is no accident; it is done intentionally to minimize public outrage over teacher pay." Read more!

• How Much Should a Teacher Make? A Private Sector Equivalency Calculation by Bill Zettler. "We believe that teaching is an honorable and well-respected profession and teachers should be compensated in a manner equivalent to what private sector peers earn taking into account all fringe benefits. Our argument is that most teachers, especially those in suburban Chicago, are more than adequately compensated compared to their equals in the private sector. Over the last 10 years, due to teachers unions influence on politicians of both parties, teachers' salaries and benefits have increased to the point where in many cases they far exceed what the private sector earns. ... So we will work through a scenario ..."

• What To Know About Illinois Public School Teacher and Administrator Pay "What's evident is that the rate of pay increases and the pension benefits far outpace anything seen by private sector employees. Part of the reason for this disparity has to do with the fact that public sector unions -- in this case, the teacher unions -- operate as a monopoly within a monopoly."

• What To Know About Illinois Public School Teacher and Administrator Pensions by Bill Zettler

• Illinois Teachers Pay Relative To Other Degreed White-Collar Workers by Bill Zettler "Are Illinois teachers underpaid or overpaid relative to other degreed white-collar workers? The attached chart shows they are overpaid without even including the value of tenure or million-dollar pensions or 3 months off every summer. Did you know there are 6 schools where the average teacher makes about the same monthly salary as the average MD in General Practice? Did you know that 63 schools pay a monthly salary greater than the average dentist in general practice makes? How about 37 schools paying more than pharmacists, 32 more than Administrative Law Judges, and 27 more than actuaries. And hundreds of schools pay more than microbiologists, chemists, chemical engineers, mechanical engineers, mathematicians, veterinarians, computer programmers and auditors."

What Districts Aren't Telling

• The Need for School District Financial Transparency: What they're disclosing, and what they're not, Family Taxpayer Network.

• The Champion School Accountability Project, Champion Foundation: "Illinois taxpayers have greatly increased funding to the public schools for decades, yet there are never-ending cries for ever higher taxes to pour yet more dollars into the system. The reason for this is that the schools are terribly mismanaged, so no amount of money will ever be enough. The Champion Foundation is committed to requiring all Illinois government-run school districts to fully disclose all financial information to the public. Currently, school districts resist efforts to report revenues and expenditures in a clear, understandable standardized format. This is unacceptable, since there is no accountability without transparency."

• How To Successfully Talk To Your Local District About Putting Its Checks Online by Peyton Wolcott. "Generally we start out assuming our dealings with our school districts will be a rational exercise. Most of us are volunteers and in addition to our taxes give generously to our children's schools. Then when we spend a lot of time there, we notice things. Years ago I myself felt sure that if I showed my local supe and board where money was being wasted in some areas and not adequately safeguarded in others that they would welcome this information with open arms and changes would be made on the spot. Hah! Imagine my surprise when they reacted as though to a personal attack when I was just trying to help."

The Cavalcade of Threats

• How Schools Pass Referenda, by Cathy Peschke, Citizens for Reasonable And Fair Taxes (CRAFT). "Welcome to the cavalcade of threats, program cuts and increased fees all in the name of 'for the kids!'"

• Testimony to Illinois Senate Education Committee by Chris Jenner, member of Cary school board. "How dare school boards agree to employee salaries the districts can't afford, then go to taxpayers and say, 'Raise your taxes, or we need to cut programs and teachers.'"

• Electioneering and Threatening the Customers, Family Taxpayer Network. Excerpt: "In recent years pro-referendum supporters make little attempt to argue that increasing spending improves education. Instead, their more truthful message is, 'give us more money or we'll make things worse.' School boards and administrators threatening the people they're supposed to serve is now common practice. If voters don't give them what they want, the government-run school districts warn that they will do things like change bell times, alter bus routes and pickup times, and cut extracurricular activities and other popular programs. And the threats are working because people understand that a public school system capable of decades of mediocrity is certainly capable of shortchanging their kids even further."

Running a School District

• The Goodies That Go With Running a School District, Chicago Sun-Times, July 13, 2003. "Cars. Retirement bonuses. 'Rabbi trusts.' Double pensions. Even personal security. Perks abound for school superintendents, especially those in the suburbs, who routinely ask for--and get--these extras as part of their employment contracts. Many of these perks--including bonuses, annuities and stipends-- are considered income, which ultimately boosts a superintendent's pension." (Click to read the juicy details, including all about "rabbi trusts" and Kenilworth!)

• Should a Superintendent Be Paid Like a CEO?
       "Superintendents do not do anything even remotely akin to the primary function of a CEO. Superintendents do not operate in a competitive environment. They do not establish new markets for anything. They have no competition and so do not have to steal others' market share. They do not have to employ military strategy, or in fact any strategy at all, to win or hold market share. Actually, superintendents' 'markets' are pretty much handed to them on a platter by the state..." (Click to read full article.)

Computers in Schools?

Before spending millions to hand out computers in a school district, read the articles here: Illinois Loop: Computers in Schools.

Promoting a Tax Hike

• Firms' Role In Campaign At Issue:
  They Back, Then Profit From School Bond Sale, Chicago Tribune, March 1, 2007.
  "Some of the companies that pushed for passage of a $94 million bond issue for Glenbrook High School District 225 are benefiting financially from November's successful campaign. ... William Blair & Co., a Chicago financial firm, advised school officials on how to promote the bond measure and will earn at least $130,000 in fees resulting from bond sales, Schilling said. The company gave $4,000 to the vote-yes campaign. ... Elizabeth Hennessy, principal at William Blair & Co., said the firm has acted as underwriter for many school districts."

• FAQ on Referendums and the State Officials and Employee Ethics Act, Illinois Council of School Attorneys, February 2007.

  The Ethics Act prohibits State employees and officials from engaging in certain political activities ... the Ethics Act's prohibitions apply to board members and employees, including its ban on engaging in "prohibited political activity" in certain situations and in particular, during school employment hours.

  Do "prohibited political activities" include referendum-related activities?

  Yes. The Ethics Act's definition of "prohibited political activity" includes many referendum-related activities, such as:

  • Planning, conducting, or participating in a public opinion poll ... for or against any referendum question.
  • Soliciting votes ... for or against any referendum question or helping in an effort to get voters to the polls.
  • Initiating for circulation, preparing, circulating, reviewing, or filing a petition ... for or against any referendum question.
  • Distributing, preparing for distribution, or mailing campaign literature, campaign signs, or other campaign material ... for or against any referendum question.
  • Campaigning ... for or against any referendum question.
  • Managing or working on a campaign ... for or against any referendum question.

  What types of referendum-related activities are school employees prohibited from conducting?

  Employees are prohibited from supporting a referendum during any time they are being compensated ("compensated time"). When an employee is being compensated is easy to determine for an hourly employee, but more difficult for a salaried employee. High-ranking, salaried employees must carefully consider their actions on a case-by-case basis. During compensated time or on district property, a school employee should not wear a button pro- or antireferendum, distribute pro-referendum brochures, ask others how they plan to vote, distribute pencils or other favors with advocacy messages, or engage in any other activity in support of or opposition to the referendum.

• State of Illinois, Election Interference Act:
  (10 ILCS 5/9-25.1) Sec. 9-25.1. Election interference.
  1. As used in this Section, "public funds" means any funds appropriated by the Illinois General Assembly or by any political subdivision of the State of Illinois.
  2. No public funds shall be used to urge any elector to vote for or against any candidate or proposition, or be appropriated for political or campaign purposes to any candidate or political organization. ...
  3. The first time any person violates any provision of this Section, that person shall be guilty of a Class B misdemeanor. Upon the second or any subsequent violation of any provision of this Section, the person violating any provision of this Section shall be guilty of a Class A misdemeanor.