By 25 News
NORMAL – McLean County’s largest school district will be asking voters’ permission this fall to raise property taxes to reduce multi-million dollar structural deficits in the education fund.
The Unit 5 School Board voted unanimously Wednesday for a referendum that asks for an increase in the district’s tax rate to $3.60 per $100 of assessed valuation, from the current tax rate of $2.72.
School officials say the tax rate has risen just 10 cents over 40 years, helping fuel the district’s financial troubles.
If the referendum is approved by voters, property taxes will rise about $400 per year for the owner of a $180,000 home.
Since the 2018-2019 school year, the district has been borrowing money to temporarily fill budget holes. There’s a $10 million shortfall this year, said Unit 5 Chief Financial Officer Marty Hickman.
Unit 5 leaders say without additional tax revenue, the district will face the prospect of having to close some schools and increase class sizes.
“Theoretically, which turns into realistically very quickly, it would be impossible for us to cut our way out of this hole completely,” Board Vice President Stan Gozur said. “That is not a true solution. There still would have to be probably borrowing in addition, given the size that we are facing right now.”
School board member Jeremy DeHaai said the referendum allows the community to provide direction. DeHaai said he’s heard from district residents that Unit 5 should reduce administrative staff or “cut the fat” to save money.
Unit 5 covers large portions of Bloomington-Normal, some rural communities near the Twin-Cities including Carlock, and small part of Woodford County.
The election is November 8.
