SD200 Hiking Property Taxes with $123 Million Cash Hoard!

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CHICAGO–Oak Park/River Forest High School Dist. 200 school board will vote on a property tax increase December 20 while sitting on a hoard of cash totaling $123 million, according to Barry Jay Epstein, Ph.D., CPA, CFF, a Chicago-based forensic accountant.
Furthermore, Epstein’s analysis shows that funds from the 2002 property tax increase were essentially never used for the purposes they were purportedly needed, and have sat idle, earning little or no return as they have accumulated over the decade.
“Even with worst-case assumptions, projections show no need for another increase for many years into the future,” stated Epstein. “This school board has been accumulating millions of dollars at the expense of homeowners.”
“Oak Park and River Forest High School is the only school in District 200 and is one of the most lavishly funded and financially viable schools in the state.”
“Over the past ten years, thanks in part to the additional property taxes imposed in 2002 (and phased in through 2005), the District’s cash and temporary investments have grown from about $23 million, at June 30, 2003, to over $123 million at the latest fiscal year-end due to annual operating surpluses.”
“This remarkable accumulation of unused wealth strongly implies that the claimed need for the 2002 property tax levy increase was, most charitably stated, ill-considered.  Indeed, this fact alone would serve to argue for a tax decrease in 2012, rather the $8 million property tax increase the Board is seeking.”
“Equally disturbing is the fact that this accumulation of cash has seemingly not been well-managed. The Board’s 2012 comprehensive annual financial report shows only $459,000 in earnings on an average of over $110 million in investable funds, for a return of less than one-half of one percent.  Even in today’s low-interest rate environment, this is incomprehensible – adding insult to injury for the taxpayers who were forced to remit these apparently unneeded funds.”
“The Educational Fund surplus has grown at almost a 30% annual rate, and the District’s funds’ total surplus has grown at over 20% annually, over the past decade.  Apparently, this remarkable performance record is not good enough, however, as the Board wants to impose even heavier taxes.  To fund what? – a question the Board must answer.”
“The current cash hoard of over $123 million, and the unrestricted surplus of almost $100 million (both as of June 30, 2012), are more than adequate to carry the District for perhaps as long as another fifteen years. A property tax decrease, not an increase, is indicated,” concluded Epstein.

SD200 Accumulates $123M Surplus and Raises Property Taxes by $8M?

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Chicago – Oak Park and River Forest School District 200 Board of Education has been squirreling away cash for the last 10 years – to the tune of $123 million – and yet they seek to raise property taxes another $8 million on December 20.
“This is the epitome of government greed. At a time when taxpayers could really use a break, they are getting zapped for an absolutely unnecessary and excessive property tax hike,” stated Rae Ann McNeilly, Executive Director of Taxpayers United of America (TUA).
“Fortunately, taxpayers in Oak Park and River Forest aren’t going to take this financial assault lying down. A local activist, Barb Langer, Ph.D., is organizing opposition to this unbelievable move by the Board.”
“We absolutely must stop this unnecessary property tax increase,” stated Dr. Langer. “What could possibly justify an $8M property tax increase when there is currently a $123M surplus and annual operating surpluses continue to accumulate”?
“We are urging residents of Oak Park and River Forest School District 200 to attend the public hearing on Thursday, December 20th at Oak Park River Forest High School, 201 N. Scoville in Oak Park at 7:30 p.m.,” added McNeilly, who is submitting a request to speak on behalf of hundreds of TUA members.
Dr. Langer noted, “We are fortunate to have Barry Jay Epstein, Ph.D., CPA, CFF, a Chicago-based forensic accountant and recognized audit expert, donate his time and expertise in analyzing the SD200 financial data. Dr. Epstein’s analysis clearly shows that a property tax increase is not only unnecessary, but grossly excessive.”
The research and documentation of Drs. Langer and Epstein have been posted on the TUA website.

Stop Oak Park and River Forest District 200 from Raising Our Property Taxes on December 20!

Brought to you by:  Protect District 200 Property Taxpayers
Barb Langer, Ph.D., Founder and Barry Epstein, Ph.D., CPA, Forensic Accountant
Contact:  NoNewTax@att.net

The Board of Education (BOE) for Oak Park-River Forest High School (OPRFHS) District 200 (D200) in Oak Park, Illinois, said on November 15 that D200 will pass a 2.5% property tax increase on December 20, 2012, despite having a $123 million cash surplus.
BOE members indicated that while they will hold a perfunctory “Truth in Taxation” public hearing immediately before approving the new levy on December 20, they will let nothing deter them from extracting their annual pound of flesh from D200 households.The only way District 200 residents can stop the BOE from passing the levy is to come and protest in person…

Thursday, December 20, 2012
7:30 p.m.
Oak Park River Forest High School
201 N. Scoville, Oak Park, IL.

Only mass political pressure will have any impact on the BOE.  Otherwise, you will face annual property tax increases from D200 forever.

D200 BOE President Terry Finnegan set forth D200’s arguments for the levy in a November 28 article, “Criticism of D200 levy is misinformed.” [i]

Mr. Finnegan took exception to our earlier articles in the Wednesday Journal [ii]  and Dr. Langer’s public comment opposing the Levy at the November 15, 2012, D200 BOE meeting. [iii]

We have rebutted Mr. Finnegan’s published arguments in the attached article. [iv] D200 also posted a description of the levy. [v]

Our brilliant forensic accountant, Dr. Barry Epstein, CPA, CFF, [vi] reviewed D200’s published Comprehensive Annual Financial Reports and Projections for the last 10 years [vii] and found no justification for a new levy at this time. [viii]

Dr. Epstein will present a Power Point Presentation at the 7:30 p.m. BOE meeting on Thursday, December 20 at the high school that will be posted here following the meeting.  Please come and see him.  He’s a great speaker!

Below, after links to related documentation, are Dr. Epstein’s analysis of D200’s financial reports and Dr. Langer’s explanation of why and how D200 can and will pass the levy unless D200 residents come and protest at the December 20 BOE meeting.

Click below to view Dr. Epstein’s analysis, SD200 By the Numbers,  and related documentation (some files are large and may take a few moments to download).:
SD200 By the numbers
Dr. Langer’s analysis of SD200’s justification of tax increase
SD200 By the numbers (500 word version)
SD200 By the numbers (800 word version)
Our Rebuttal to D200 BOE President Finnegan’s 11/28/12 Wednesday Journal article
Dr. Langer’s Public Comment at November 15, 2012 D200 BOE meeting
Dr. Langer’s Viewpoints article censored by the Wednesday Journal
Dr. Langer’s report on BOE Pres. Finnegan’s refusal to speak
D200 Pres Finnegan’s Letter denying Dr Epstein’s request to speak on Dec20
D200 BOE President Finnegan’s email declining our request to speak
D200’s Notice of Property Tax Increase
Endnotes:
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http://www.oakpark.com/News/Articles/11-27-2012/Criticism-of-District-200-levy-is-misinformed/
ii Langer B:  Say no to District 200’s new tax levy increase.  Wednesday Journal, p. 26, 13Nov2012
Langer B, Thomas V:  District 200 rushes levy increase, survey.  Wednesday Journal, p. 23, 20Nov2012
iii Dr. Langer’s comments at November 15, D200 BOE meeting
iv Rebuttal to District 200 President Terry Finnegan’s article entitled: “Criticism of District 200 levy is misinformed”
v SD200 Description of 2012 Preliminary Levy
vi http://www.forensicaccountingexpert.com/?gclid=CPaNvu7hl7QCFegWMgodqRkAOQ
vii http://www.oprfhs.org/business-office/Reports.cfm
viii http://www.oakpark.com/News/Articles/12-11-2012/School-District-200-by-the-numbers/