PMA Financial Network suggests referendum but has history of funding referenda.

The following story appeared in the Daily Herald. For the most part the Daily Herald does an outstanding job reporting on education issues. If you are not a subscriber you should subscribe.

PMA has yet to say a school does not need money. This company often holds lucrative contracts with schools. If the schools get more money than PMA financial gets more money.

The most important section in the report below is as follow.... "PMA Financial Network works with school districts across the Chicago area. The company’s financial projections have not been well-received at all suburban schools.

Cary Elementary District 26 board members last year questioned the accuracy of a PMA report that predicted sharply declining fund balances. PMA’s poor financial outlook was used to help push an unsuccessful 2004 tax-hike referendum, which some District 26 officials at the time opposed and said was an unnecessary effort.

Based on PMA’s forecast, District 26 materials stated it would be out of money in 2005 unless revenue jumped or cuts were made. Instead the district ended with $7.92 million in its coffers when the 2004-05 academic year ended.

PMA has contributed money to groups promoting “yes” votes on school tax-increase efforts. State Board of Elections records show PMA has provided $13,750 to tax-hike proponents since 2003."



Report: Warren must make cuts or raise tax funds

By Bob Susnjara
Daily Herald Staff Writer
Posted Wednesday, June 28, 2006

Warren Township High School in Gurnee can free up about $3 million to balance its budget by considering program cuts or a tax increase, according to a financial consultant’s report.

Donald Weber, vice president of sales and marketing for PMA Financial Network Inc. in Warrenville, made a presentation to Warren District 121 board members Tuesday night. PMA has been assisting Warren in long-range financial planning.

“You’ve got some rough waters you’re going to be approaching in the very near future,” Weber told Distrct 121 board members, “and we projected that two years ago.”

Possible programs Warren can elect to cut include:

• Eliminating all athletics and co-curricular programs, saving $1.7 million.

• Losing 30 staff members to save $2.3 million.

• Dropping non-mandatory classes, such as foreign language, saving $1.4 million.

• Cutting eighth period to save $700,000.

District 121 can also seek to boost its revenue by placing a tax-increase referendum on the ballot, stated the PMA report. The report says Warren’s deficit spending is reducing working-cash fund balance reserves.

Weber said Warren’s financial woes are tied to a lack of revenue rather than spending too much money. He said District 121 needs more revenue, fewer expenditures or a combination of both.

PMA Financial Network works with school districts across the Chicago area. The company’s financial projections have not been well-received at all suburban schools.

Cary Elementary District 26 board members last year questioned the accuracy of a PMA report that predicted sharply declining fund balances. PMA’s poor financial outlook was used to help push an unsuccessful 2004 tax-hike referendum, which some District 26 officials at the time opposed and said was an unnecessary effort.

Based on PMA’s forecast, District 26 materials stated it would be out of money in 2005 unless revenue jumped or cuts were made. Instead the district ended with $7.92 million in its coffers when the 2004-05 academic year ended.

PMA has contributed money to groups promoting “yes” votes on school tax-increase efforts. State Board of Elections records show PMA has provided $13,750 to tax-hike proponents since 2003.