At least three members of the Waukegan Community Unit School District 60 Board of Education are committed to letting voters decide whether people shopping in Lake County will pay an additional 1% sales tax to benefit the county’s public schools.
School districts throughout the county are in the process of deciding whether to take the necessary steps to direct Regional Superintendent of Schools Michael Karner to certify the referendum to Lake County Clerk Anthony Vega to put it on the Nov. 3 general election ballot.
If school districts representing more than 50% of students enrolled in Lake County public schools approve resolutions in support of the sales tax referendum, Karner will be required to take steps to place the referendum on the ballot.
The District 60 Board of Education is scheduled to vote on a resolution to direct Karner to place the referendum on the ballot when it meets at 7 p.m. Tuesday at the Education Service Center in Waukegan.
Board members Carolina Fabian, Jeff McBride and Rick Riddle all indicated their intent to vote for the resolution during a special board meeting on Tuesday. The other four members did not specifically say how they plan to vote, though no one said they opposed the idea.
“I am going to vote yes because I think our community should be the ones to decide; our citizens who have to pay for this decide,” Fabian said.
“This is one of the few ways we get money from the entire county,” Riddle added. “A lot of our people go out to Gurnee or Libertyville to shop. This would be great; very equitable. This is one opportunity for everybody to help all kids in Lake County.”
Kyle W. Harding, an attorney with Chapman and Cutler who represents the district on matters related to bonds, said at the special meeting that the 1% sales tax dollars — the overall sales tax would go from 8.5% in Waukegan to 9.5% — can only be used for specific purposes.
Harding said proceeds from the sales tax can only be used for long-term capital improvements like building renovations or repairs, such as a new roof, school resource officers or mental health professionals. All other expenses, including personnel, come from current revenue sources.
Should the referendum be placed on the ballot, Elizabeth Hennessy, the district’s bond advisor with Raymond James, said the money will go to Karner’s office. He will distribute it based on the enrollment of each district.
Since Waukegan is the largest district in the county with approximately 14,000 students, Hennessy said District 60 could expect to receive approximately $14 million of the $122 million in sales tax collected in the county.
Hennessy said 52% of the revenue will be paid by people living outside Lake County, whether they come from Wisconsin, Cook or McHenry counties.
“When you think of the major tollway, (Highway) 41 and the various transportation arteries in the county, that’s where you see people stopping, buying gasoline, merchandise from convenience stores, fast food,” Hennessy said.
Along with the resolution to put the referendum on the ballot, Hennessy said there is a companion legislation where the board will “pledge to the taxpayers you would use the funds from the county schools’ facilities sales tax for property tax relief.”
Rather than sell bonds, which require interest payments to finance long-term capital improvements, Hennessy said the $14 million from the sales tax could be used for the same purpose.
Gwen Polk, the district’s associate superintendent for business and financial services, said after the meeting that the companion resolution will have no impact on revenue coming into the schools.
Fabian talked about informing the voters about the referendum if it is placed on the ballot. Hennessy said the board should develop a campaign strategy to let voters and community members know the benefits of the additional revenue.
“It’s important for the district to have public meetings, town halls, videos, and information on your website,” Hennessy said. “What does this mean to me? What are we going to get for this? How much is it going to cost me?”
