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School funding reform unsettled
Advocates optimistic something will be done before lawmakers adjourn

Published Monday, July 09, 2007

Early in 2007, various lawmakers and other people with close ties to education declared confidently: This will be the year for school funding reform in Illinois.

“I think the political will is there,” state Sen. James Meeks, D-Chicago, said at a Feb. 8 news conference spotlighting identical pieces of legislation that he and Rep. David Miller, D-Lynwood, were sponsoring. Senate Bill 750 and House Bill 750 aimed to help schools and included provisions to raise Illinois’ individual and corporate income tax rates, expand the state sales tax to cover consumer services and provide property tax relief.

Meeks wasn’t alone in his optimism, which was noteworthy because lawmakers have debated for years about overhauling the state’s school funding system, yet they have been unable to agree on exactly what to do.

That’s still the case, as the General Assembly heads into a second month of legislative overtime. The scheduled adjournment date was May 31.

“What is said at the beginning of legislative session is not always what occurs at the end,” said Norm Durflinger, co-director for the Center for the Study of Education Policy at Illinois State University and an assistant professor who teaches about school finance. “It could be more at the beginning and less at the end, or less at the beginning and more at the end.

“But there’s no question, I think people had their hopes up this time,” Durflinger added. “They thought this might be the year.”

It still might be, said state Sen. Kimberly Lightford, a Maywood Democrat who chairs the Senate Education Committee.

She has been working for the past few weeks on a new legislative proposal that still is being drafted but outlines more than a dozen initiatives, such as increasing per-pupil spending to $6,058 (from $5,334) and authorizing “merit pay” for teachers if school districts and teacher unions agree to it.

The plan’s price tag is $1.5 billion, she said, and much of the funding would come from an expansion of Illinois’ gambling industry. One plan to expand gambling already won Senate approval but stalled in the House.

“The good thing about us being here late is that members are still hopeful and many of us are still standing strong,” Lightford said. “I think what many of us hoped for was that this is the year for education reform. We were all excited about it. Hopefully, if nothing else, we can get more money and some reforms into our school districts.”

The heads of two teachers’ unions, the Illinois Education Association and the Illinois Federation of Teachers, also think lawmakers still could address school funding before they close the book on the 2007 spring legislative session.

“It’s still there. It’s a possibility,” said Ed Geppert, who just resigned his seat on the Illinois State Board of Education to take over as IFT president. “It’s not over with yet.”

IEA President Ken Swanson, pointing out his paraphrase of baseball legend Yogi Berra, added: “It ain’t over till it’s over, and we don’t believe that the fight is over.”

“This is a decades-old problem now that has reached an absolute crisis stage in this state,” Swanson said. “We can’t wait any longer.”

Geppert and Swanson said one of the stumbling blocks for school funding reform this year has been the state’s electric rate crisis, which unexpectedly consumed a lot of lawmakers’ attention and energy, leaving them with less time to focus on other issues.

Ralph Martire, executive director of the Center for Tax and Budget Accountability, believes the main reason for the lack of movement on school funding this year is Gov. Rod Blagojevich’s pledge against hiking income and sales taxes, “coupled with the big distraction over the gross receipts tax and health care.”

The governor proposed in March to use a new “gross receipts tax” on businesses to fund near-universal health care and to provide more money for pre-kindergarten-through-12th grade education. Martire said the plan — especially the GRT and health-care components — caught policy-makers by surprise, and that the governor failed to “prime the pump” by letting lawmakers know about it ahead of time.

School funding reform, by comparison, has been “bouncing around” for decades, Martire said.

“People are pretty comfortable with the need,” he said. “They’re getting more and more comfortable with the reform, and now they’re kind of ready to act.”

Martire said a frequently repeated misconception in the media “is that this is all about money, and that the reform community just wants money, money, money, money.”

That is incorrect, he said, citing research that shows Illinois falls $2 billion short on the amount of money needed to provide a “quality education in an efficiently operated school district.”

“What has been developed is a school funding reform tied to changing test scores, tied to academic achievement,” Martire added. “We’ve never had that before.”

But not everybody thinks the legislature needs to revamp school funding this year.

“If you show me that money will make a difference, and not just on the margins but will really change the system and improve it, I think most of my members would say more money is a good thing to jump up and down about,” said Jeff Mays, president of the Illinois Business Roundtable. That organization examines various state issues, including education and economic growth.

“We don’t want to see education measured in dollars,” added Mays, a former state lawmaker who served in the 1980s. “We want to see it measured in results. And there’s too few people talking about what are we doing with the dollars that we’re getting, and how are those dollars being maximized to drive student improvement.”

Nevertheless, various self-described education advocates plan to keep pushing for school funding reform.

“We still believe that Illinoisans have such a deep and clear commitment to both children and fairness that we’ll continue to press forward, even as things look fairly grim right now,” said Jerry Stermer, president of Voices for Illinois Children.

“It’s our obligation as advocates to encourage our own groups, as well as the political leaders, to keep the conversation alive,” Stermer said. “As long as we’re in session, I believe we have hope that something very significant can come.”

Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.


Plans for reform

State lawmakers this year have considered different ideas to boost school funding, although no plan has garnered widespread legislative support. To date, the two main plans are the so-called “tax swap” and Gov. Rod Blagojevich’s gross-receipts tax proposal. Here is a capule description:

  • TAX SWAP:

    This plan is encompassed in identical pieces of legislation, House Bill 750 and Senate Bill 750. It would raise Illinois’ individual income tax rate from the present level of 3 percent to 5 percent and raise the state’s corporate income tax rate would rise from its present level of 4.8 percent to 8 percent.

    Other provisions include expanding the state sales tax to cover consumer services, such as lawn care and haircuts, and providing about $3 billion in property tax relief throughout Illinois.

    Supporters say it also would establish a more reliable method of paying off the state’s pension debt.

  • GROSS RECEIPTS TAX:

    This plan is encompassed in Senate Bill 1 and has undergone revisions since the governor unveiled it in March. It would tax all business transactions and generate an estimated $7.6 billion to pay for near-universal health care, an increase in education funding and property tax relief.

    The version of the GRT that a Senate committee approved in May would implement a 1 percent tax on manufactured goods and a 2 percent tax on services. It would apply only to businesses with revenues of at least $2 million, and businesses with 25 or fewer employees would qualify for a credit that would reduce their tax bills.


  • Reader Comments - 13 comments

    At the risk wrote at 7/9/2007 7:19:11 AM

    At the risk of sounding like a cynic, every year is the year for school funding reform. However, 2007 may be the year.

    Blago's tricks wrote at 7/9/2007 7:39:53 AM

    There will be NO school funding reform this year nor will there be any reform for the real estate taxes that everyone pays. Blago has said over and over again, ad nauseum, that he wants his universal health care plan. You remember folks, that would be the plan that he said nothing about while campaigning because he knew it would cost him the election. He still said nothing until his State of the State surprise when he announced that GOD told him Illinois needed this plan for uninsured residents. The legislature will be doing good to get a budget passed without this pie-in-the-sky dream for all uninsured of Blago's getting rammed through. I'm also not impressed that Blago went to a Springfield church yesterday. Can you say PANDERING TO THE VOTERS?????? I'm pretty sure God isn't happy with Blago right now.

    GoIllini wrote at 7/9/2007 8:10:07 AM

    Jeff mays said something that few talk about: results. So many people think throwing more money at something will make it better. Yet, there is no accountability and there seems to be no real effort to measure results. The "monopoly" of public education needs to be broken up.

    for property tax relief but no taxes wrote at 7/9/2007 8:28:45 AM

    I believe that we need school funding reform. What that means to me is a tax swap. I want my property taxes cut by 75% and I do not want my State Income taxes to increase. I feel that I already pay way too much in taxes. The teachers and administrators need to learn to do with less. We keep giving them more and more, every darn year, and they just waste it.

    RealityCheck wrote at 7/9/2007 8:48:54 AM

    Gollini is correct. Education receives billions of dollars in state and local money every year and we have "reformed" education several times, each time with massive amounts of new money...and the results remain the same....academic achievement remains below state standards in just about every academic area. Each year brings new calls for "reform" but what the educators and politicians really mean by "reform" is "more taxes and more tax money for education".

    Mark Observed wrote at 7/9/2007 9:16:01 AM

    This is not school funding reform it is just throwing more money at a problem that money won't solve. The state monopoly on schools is failing badly despite billions of dollars being spent and kids still graduate from high school and can't read or do simple arithmetic. If the state wants real reform, why not give the parents the money that they give the schools and let the parents decide where they want to send their children. It will never happen though because neither state teacher union will agree to it. Whcih should show everybody that the union leadership is not concerned about the kids like they say they are.


    this is not reform wrote at 7/9/2007 9:31:11 AM

    As with the other posters here, this is just throweing more money at a very bad and overly top heavy state education system. Until the two teachers unions and the bloated administration are brought to thier collective knees and made to "DOWNSIZE" as the rest of the state agencies, the problem will continue to GROW! not be reformed. Good golly Sen. Meeks, get a grip on the definition of reform.

    Gehod wrote at 7/9/2007 12:15:18 PM

    Reform,huh thats just another word for the middle class will pay for it,while we go to work and pay for our own kids then we have to turn around and pay for someone elses kids who dont even work or contribute to society that is what makes me mad.

    moved to chatham wrote at 7/9/2007 12:50:47 PM

    Meeks got owned

    Just do it wrote at 7/9/2007 2:26:25 PM

    Every two years, General Assembly candidates say education is their top priority, moan about the inequities in the system and solmenly vow to fix it. Are they serious or is that campaign rhetoric which no one should take too seriously? When it comes to school funding reform -- just do it!!!

    fed up wrote at 7/9/2007 6:27:04 PM

    I believe reform needs to start with state employee and teacher pension funds.The people cannot afford these outrageous benefits. If Blago thinks he can put up $40 BILLION into pension fund he's crazy. The people of Illinois are sick and tired of our hard earned money being wasted.

    we do not to raise any taxes wrote at 7/9/2007 6:39:39 PM

    to Chucago's public school deep hole. Meeks should make do with what he's got. A tax swap isn't fair to renter's either, they won't get a reduction in their rents because the landlord will pocket the property tax savings. The poor (all renters) will get get poorer. That doesn't sound like a good democratic principle!

    Tibby wrote at 7/9/2007 9:58:42 PM

    Mr Martire, ever the hardcore socialist, is as usual, wrong. It is all about funneling more money into the pockets of the teachers unions. The union bosses then take the union dues and stuff it in the Democrats' pockets. Follow the money. Actual education is not important. If it were, then public schools would not have dropped phonics and gone to the failure that is 'whole language'. Notice how, as student achievement drops, we need more teachers to make up for the teaching failure. More teachers, more dues, more cash in Democrat pockets. Quite the incestuous relationship. The uneducated vote Democrat, when they can find the polling place. Notice how Mr Geppert was ISBE, and went to the IFT. The fox has been in the hen house. Another fox will take his place.


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