Lyons Township High School Reber Center. Photo by Madman

Lyons Township High School District 204 is looking to get out from under the jurisdiction of its township school trustees.

LT wants out of the long-term relationship because it says it does not need the financial services, such as accountable payable, accounts receivable and payroll, that the Lyons Township Trustees of Schools provides.

“It is a big deal for us,” said Tim Kilrea, superintendent of District 204. “It is an office we have not used for decades. We get charged a lot of money for services that we do not access.”

The president of the Trustees of Schools said that District 204’s assertions are simply not true.

“It is not a restaurant. You do not get to decide what services you want and what services you don’t want,” said Michael S. Thiessen, president of the Lyons Township Trustees of Schools. “We have been providing them services for 20-plus years. We have had $50 million to $60 million of their money and we have managed it effectively.”

Kilrea said the last bill from the Trustees of Schools, in fiscal year 2013, was for $253,000. The district annually back-bills the agency for services it provided on its own, Kilrea said.

State Rep. Jim Durkin (R-Western Springs) is championing the LT district’s cause. His legislation to allow LT to split from for the Trustees of Schools passed the Illinois House on March 25. It now moves to the Senate.

“Currently, District 204 is being billed for services by the Lyons Township Trustees of Schools, services that are currently being performed in house … This is illogical and a gross waste of taxpayer dollars,” said Durkin.

Thiessen said it is District 204, not the Trustees of Schools, wasting taxpayer dollars. He said District 204’s cost per financial transaction is more than 500 percent higher than that of the township organization. He noted LT’s cost per transaction was $10.53 in 2012, compared with the Trustees of Schools cost of $2.10 per financial transaction.

“Some districts believe we have an unbelievable office,” Thiessen said. “We allow them to put their focus on education … (LT) could put that money right into educational services.

“They are the ones providing a duplication of services. They are the ones wasting taxpayer money. We are a classic example of consolidated services. We are an unbelievable value. We are an unbelievable office.”

LT has tried to go the legislative route to get out of the Trustees of Schools previously, but has been stymied at the Senate level. Durkin hopes this time will be different.

“Senator (Christine) Radogno (R-Lemont) and I have been working with District 204 these past few years on a legislative solution that removes them from the auspices of the Lyons Township Trustees of Schools,” the House minority leader added. “A recent scandal which led to the conviction of their former treasurer only further questions its mission to taxpayers and students.”

In that scandal, former Lyons Township Schools Treasurer Robert Healy was convicted of stealing more than $100,000 in school funds and was sentenced to nine years in prison.

Thiessen said the theft was a black eye to the Trustees of Schools, but that the school finance organization has continued on – professionally – without missing a beat.

“We have recovered 75 percent of the money and we are working to get the rest back,” Thiessen said. “Unfortunately, people steal. This is not an isolated incident. People in churches and Little Leagues steal … I live in the district. These are my tax dollars too. These are the tax dollars of the same people I go to church with, that I go to barbecues with.”

Thiessen said Durkin and District 204 leaders are looking at the office theft to make their case.

“They have this holier than thou approach,” Thiessen said. “It is great to have 20/20 vision. I did not see Durkin sponsoring this legislation in the past.”

Asked if there was any benefit for the district to remain in the township organization, Kilrea responded, “not that we see.”

In 1961, township school treasurer’s offices were abolished everywhere in the state, except Cook County. Seceding from a school treasurer’s office can be an arduous process, but it doesn’t have to be. By getting legislation passed to approve the break, the separation can happen fairly quickly.

“It is frustrating,” Kilrea said. “The same legislation we are trying to get, neighboring districts have gotten. We feel we have always run a more efficient business operation. We have never had any financial mismanagement.”

Kilrea said that when the allegations against Healy surfaced, the district examined the situation and determined it wanted to be on its own and not part of the township school group.

The LT superintendent said the district has gone the General Assembly route instead of pushing a referendum to abolish the office because it is only interested in severing its relationship with the organization.

“We are not looking to disband the office. If you want to be part of the cooperative, that is your choice … Some districts may want to remain so we did not go the referendum route. We are not interested in disbanding the office. We are only concerned with our relationship.”

However, other districts have taken LT’s cue and are trying to break from the township group as well. Districts 105 and 102, as well as the LaGrange Area Department of Special Education, are looking to get out from under the jurisdiction of the Trustees of Schools.

Cheryl Witham, now with the New Trier School District was the chief financial officer when Oak Park-River Forest High School made the break from the Cicero Township Trustees of Schools.

She said it was a 10-year process that started with her seeing anomalies with the Trustees of Schools’ books and ended with other school districts finally letting OPRF get its money out of the pooled fund.

“It takes a lot of the time of individuals,” she said. “School personnel turns over.”

Witham said the township school trustee system was put in place when school districts did not have individuals with the financial expertise to run the operations.

“But it has outlived those times,” Witham said. “Maybe for small elementary districts with one person in finance the system works, but for the high school, with the money it gets, staff could do a better job.”

LT is also facing a $4.5 million lawsuit from the township school trustees. Kilrea said there has always been an agreement that the Township Schools organization would bill the district and LT would back-bill the organization for providing its own financial services. A change in leadership at the Township School organization has brought claims that no such agreement ever existed and that LT owes the township organization $4.5 million for services dating back to 1993, Kilrea said.

The first complaint was dismissed, but a second complaint by the Township School organization is pending in court, Kilrea said.

The Trustees of Schools’ Thiessen said residents are getting a good value with the co-op organization.

“We have a good office. We serve 24,000 kids. We handle $250 million to $400 million, depending on when property taxes come in,” Thiessen said. “Every teacher’s check comes from our office. We get the best returns (on investments) for districts. We are very efficient.”