As prices continue to rise due to inflation, the cost of providing education at Niles West and Niles North High schools is also going up.
The Niles Township High School District 219 Board of Education recently gave preliminary approval for a 5% increase in the district’s share of the property tax levy and is expected to cast a final vote at its Dec. 6 meeting, said Tim Neubauer, assistant superintendent for business services with the school district.
“I know that most of the school districts that feed into our district, as well as a lot of the surrounding school districts, are requesting similar increases because we’re all experiencing the same increases in costs,” said Neubauer.
He said the tentative 5% increase could have been more if a state law did not cap school district tax levy increases at 5%. The increase, he explained, is being driven by a 7% increase in the Consumer Price Index (CPI), which he said is the highest in years.
“We’re paying more for buses, transportation, fuel,” he explained. “Like everybody else, we’re paying a lot more for our goods and services.”
The district’s total 2022 levy rings in at a little more than $159 million, with the largest amounts slated for education at $122 million, operations and maintenance at $13 million and transportation at $6.4 million.
Neubauer also said he expects taxpayers may grumble at the tax hike.
“I understand that and I certainly feel for them,” he said. “I’m in the same boat when I pay my taxes.”
“The same increase that we’re all realizing as individuals and families, the school district is also experiencing those same increases in costs as well. It’s unfortunate for all of us.”
He also said teachers’ raises have been incorporated into the district’s budget.
“However, we are negotiating with the associations starting next year,” he added. “Who knows where that’s going to head, but we’ll take that as it comes.”
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But there is some good news for taxpayers when it comes to the district’s financial status.
In 2014, the district owed $222.4 million in debt, consisting of $155.9 million in principal payments and $66.5 million in interest payments, Neubauer said, adding that the board focused on paying down that debt, which now rings in at $590,000. He also explained that the annual debt service payment is currently about $30,000, and that by paying down the debt, the district is saving taxpayers money.
However, inflation could become an issue in the future, Neubauer cautioned.
“We’re looking at maybe another year of inflation ahead of us,” he said. “I don’t have a crystal ball, but it doesn’t look like prices are coming down significantly anytime soon. Hopefully they will.”