Would You Pay More Taxes?

In Berwyn, we pay lower taxes than most of the surrounding suburbs. Indeed, this may be what attracted many of us to this community when we were house hunting last year or 20 years ago. All three of the school districts that serve Berwyn face financial challenges and all 3 school districts spend significantly less than most of the surrounding suburban school districts.

Since school districts in Illinois are largely dependent on property tax, the two factors that determine how much a community spends on education are the Equalized Assessed Value and the Tax Rate:

EAV x Tax Rate = $$$

Equalized Assess Value includes all computed property values upon which a district's local tax rate is calculated. So a land locked community like Berwyn, with very little new development (New condos will help but compared to the new housing that has gone up in farther out suburbs, it is not significant), 4 TIF districts that limit the amount of new tax revenue from businesses that go to schools, and little/no big businesses to contribute to the education tax, the burden falls directly on the regular old tax payer in the form of your yearly property tax bill.

Tax Rate is the amount per $100 of property value you are charged on your tax bill. There is a separate calculation for the high school district 201 and the elementary school district, either District 98 if you live north of 22nd street or District 100 if you live south of 22nd street. Each district has its own tax rate.

This formula (EAV x Tax Rate) of using property taxes to fund schools results in a system that is inequitable.

Consequently, the kids who need the most, get the least.

And so it is in Berwyn right now. That's the bad news. The good news is we have some ability to change the factors...though one more than the other. Our city may be able to increase our EAV in the following ways, though probably not very quickly:

1. Make a plan for business development. The BDC and the city must attract businesses that will succeed and add to the tax base for our schools. Residents can do their part by patronizing the existing businesses. Buy in Berwyn.
   
2. New developments. Condos are great for schools because they add to the property tax base without adding kids to the schools (usually). Since we are a landlocked community, these opportunities are few. Condo conversions might be desireable if the tax revenue from the condominiums increases compared to the preexisting apartment building, but the economic conditions need to be right for developers to begin seeing Berwyn as a reasonable place for condo-conversions.
   
3. Increase property values. How to do this is up for debate but most communities that invest in education see their property values increase.
   

Attempts to increase the EAV in our town are important, but we will have a far greater immediate impact on education funding by increasing the tax rate if our districts were to ask for an increase via a referendum. District 201 asked 3 times in the past year or so without success.

Below is a chart that lists our districts compared to surrounding districts in EAV, tax rate, per pupil spending and achievement. You will notice some correlation between spending and achievement and property values.

Are we a community that values education? My hope is that Berwyn becomes a destination suburb for education, a place that people move TO because of education instead of away FROM. Believe it or not, I think that is in reach.

Despite the lack of funding for our elementary schools, they are performing remarkably well, with many named "Spotlight Schools" for the high achievement of students. Imagine the possibilities if we actually adequately funded them!

The challenges at Morton West are greater, both regarding achievement and finances. Our children deserve better than what we've given. It is my opinion that we as a community, as parents, as residents must begin to take responsibility for our high school and that starts with a willingness to adequately fund education. In February of 2007, only 2,718 Berwynites voted in the tax referendum election. 67% voted against a tax increase. To be sure, there are many messages behind those votes, but I just don't believe that those 1828 Berwyn voters don't want a better high school for Berwyn. And what of the other 20,000+ registered voters that didn't vote? Maybe it doesn't start with adequately funding education...maybe it ends there. Maybe it starts with engaging the people! Maybe it starts with CARING one way or the other.