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Weekly Review
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September 23, 2008
 
 
Quick Links
CTBA Website
Weekly Review Archive
 
In This Issue
New CTBA report on education quality
HB 824 becomes law!
Fund sweeps passed by General Assembly
Speak at a Local School Funding Reform Hearing
Calendar of Events
 
Education Quality
 

 
To date, much of the conversation around education has focused on funding and quality differentials between the wealthiest
school districts and the most impoverished. Certainly, the contrasts there are striking. The untold story, however, is even more compelling. It focuses not just on the very top versus the very bottom, but rather the differentials between the wealthiest school districts in Illinois-versus the vast majority of districts that provide
public education to over three-quarters of the children in our state.

Last Thursday, CTBA released the report, Money Matters: How the Illinois School Funding System Creates Significant Educational Inequities that Impact Most Students in the State.  The data is stark and telling, revealing meaningful differences in school funding, teacher quality and academic performance that are truly statewide.

Main Findings:
 
  • There are significant differences in key metrics such as teacher quality and student performance, between the wealthier Flat Grant and Alternative Formula districts on the one hand, and the Foundation Formula districts which the vast majority of Illinois students attend on the other.
  • Significant funding and educational differences also emerge when affluent, Flat Grant districts are compared to "downstate" school districts, defined as school districts located south of Interstate 80.
  • The significant qualitative and outcome differences between wealthier Flat Grant and Alternative Formula districts on the one hand, and Foundation Formula districts on the other, is strongly related to both available local resources and instructional expenditures per student.
  • There is a strong correlation between increasing instructional expenditures per student by anywhere from $1,000-$2,200, and academic performance, as measured by the Illinois State Achievement Test.
  • This strong correlation between increased instructional expenditures and improved academic performance is evident in both school districts with low poverty (3%-8% low income rates) and significant poverty (27%-32% low income rates).
  • Minorities, particularly African Americans and Hispanics, are significantly over-represented in schools with high poverty rates, with over 93 percent of all African American children and over 66 percent of all Hispanic children attending school districts with low income rates of 30 percent or greater.
  • Disparities in both quality of teachers and academic performance between primarily Caucasian and primarily minority school districts in Illinois are material, and correlate to instructional expense per child, local property wealth, and inadequate state funding.
  • The $2,324 difference in average instructional expense per student between wealthy Flat Grant districts that only 4.5 percent of K-12 students attend, and the Foundation Formula districts that 77 percent of all K-12 students attend, is greater than the $1,003 average per child instructional expense difference between the lowest and highest poverty school districts in Illinois.
  • The greatest differential of $2,421 in average instructional expense per student exists between Flat Grant districts and downstate districts (located south of Interstate 80).
Complete with almost 30 charts and graphs, Money Matters focuses not just on the very top versus the very bottom, but rather the differentials between the wealthiest school districts in Illinois versus the vast majority of districts that provide public education to over three-quarters of the children in our state. The data reveals meaningful differences in school funding, teacher quality and academic performance that are truly statewide.  the report also analyzes schools in new and different ways such as comparing quality in schools north and south of Interstate 80.


Read:  Money Matters: How the Illinois School Funding System Creates Significant Educational Inequities that Impact Most Students in the State. 
View the PowerPoint Presentation

ABC 7:  Study says more spending equals better pupils
Chicago Sun Times:  Like Involved Parents, Money Improves Schools
Chicago Sun Times:  'We want the Goodyear blimp shot'




 
Campaign Funding Reform
 

 
ethicsHB 824 is Law 

 
House and Senate Override Governor's Amendatory Veto
Senate Passes Another Ethics Bill
 

Monday, the Senate agreed with the House and overrode Governor Blagojevich's amendatory veto of HB 824, the campaign funding reform legislation.

The new law bans businesses with more than $50,000 in state contracts from making political donations to constitutional officers who award the contracts and candidates for those offices.  Governor Blagojevich had used his amendatory veto pen to entirely rewrite the original legislation. His rewrite was struck down and the original bill will become law effective January 1, 2009. 

Senate Passes Governor's Rewrite in a Separate Bill
When the House overrode the Governor's amendatory veto of the bill last week, Representative Fritchey (the lead sponsor of HB 824 in the House) filed five separate ethics bills.  The first contains all of the Governor's amendatory veto in one bill and four others deal with each issue separately.  Fritchey's intention was to thoroughly debate each issue raised by the Governor (see below).

However, shortly after the Senate passed HB 824 Monday, SB 780 was filed, with Senate President Jones and Senators DeLeo and Collins as sponsors.  SB 780 contains all of the Governor's amendatory veto language and was brought up for a vote today.  It soon passed on a vote of 50-1- 5. 

Read more about the vote in, Senate approves ethics reforms by the State Journal Register

After it passed, the bill was sent to the House.


Background


How did the Governor rewrite (or amendatory veto) the original bill?


1.       The Governor issued an executive order, which the bills lead sponsor in the House
          calls unconstitutional.   
The original bill only banned political donations by state contractors 
          to those officer holders that oversaw the contract.  The Governor's expanded this by executive
          order to ban political donations from ANY contractor with a contract worth $50,000 or more at
          any agency from giving to not only the Governor but all other statewide officeholder, lawmakers
          and political parties. 

The amendatory veto override in the House did not deal with the executive order because it is believed to be unconstitutional.  State Representative John Fritchey (D-11), the lead sponsor of the bill in the House, told CTBA Monday he is fairly confident the executive order is both unconstitutional and unenforceable.


2.     The Governor's amendatory veto prohibits "Dual Employment."  The amendatory veto
        states:

        "No member of the General Assembly, during the term for which he has been elected or
         appointed may be employed by the State, a municipality, or unit of local government. This
         prohibition does not extend to employment as an elected official, firefighter, police officer, school
         counselor, teacher, or university instructor."

3.    The Governor's amendatory veto requires lawmakers to vote to approve a pay raise. 
       Currently, lawmakers pay raises go into affect unless they vote the raise down.

4.    The Governor's amendatory veto deals with lobbying activities by requiring legislators and
       candidates for the General Assembly to disclose lobbying activity by themselves and their
       spouses before boards, commissions, or units of local government.


Representative John Fritchey filed the following bills in the House to deal with the amendatory veto as separate issues:

HB 6700:  All four changes proposed by the Governor  (similar to SB 780, passed by Senate today)

HB 6701: Requires the General Assembly to approve or reduce a pay raise for it to take effect.

HB 6702Prohibits campaign contributions from a business entity with a state contract of more than $50,000 to any political committee (i) established to promote the candidacy of a State executive branch constitutional officer,legislator, or candidate for one of those offices or (ii) of a state central committee represented by a State executive branch constitutional officer or legislator.

HB 6703:  Requires members of and candidates for the General Assembly to disclose information concerning lobbying activities and representation cases on their statements of economic interests.

HB 6704:  Prohibits members of the General Assembly from being employed by the State, a municipality, or a unit of local government.

Resources

Browse Open Book, a searchable database of state contracts and contributions.
http://www.openbook.illinoiscomptroller.com/

 
Budget Cuts
 
capitol domeSenate Passes House Fund Sweeps Bill to
Help Restore Budget Cuts
 



The Senate followed the House and passed SB 790 to transfer $221,250,000 from special state funds to the General Revenue Fund (also known as fund sweeps).

Once Governor Blagojevich receives the legislation, he has 60 days to sign it into law, veto it completely or send it back to the legislature with an amendatory veto. In the meantime, state parks and historic sites are scheduled to close in October and November.


SB 790, bill identifies which funds to sweep as well as the dollar amount.  The fund sweeps would be used to restore some of the $1.4 billion in cuts the Governor made to the fiscal year 2009 budget.

View which fund are swept here and here.

Read the SB 790 here.


Special State Funds are various, smaller funds identified and held in the State Treasury as "special funds" under in Section 5 of the Illinois Finance Act restricted in use to the specific purpose for which they were created.

There are over 300 of these special state funds that support activities as diverse as medical assistance and environmental cleanup. They are, for the most part, designed as segregated accounts, restricted in use and funded from specifically earmarked revenue or fee sources. Examples include the Illinois Affordable Housing Trust Fund, the Youth Drug Abuse Prevention Fund and the Brownfields Redevelopment Fund. 

Since FY 2003, the state has transferred almost $1 billion from these Special State Funds to the General Revenue Fund.  However, this is not new revenue, it is simply a transfer of revenue from Special State Funds into the General Fund.  This revenue swap would not be available next year without legislative approval.

Read more about how the state transfers revenue from special use state funds to the General Fund on page 25 of the CTBA report, Citizens Guide to the Illinois State Budget and Tax System. The report contains a wealth of information on all of these budget issues.

The Senate would have to approve any fund sweeps bill passed in the House.


Background
 
Governor Blagojevich announced that 450 state workers will be laid off along with the closure of 12 historic sites and 11state parks as a result of the $1.4 billion in cuts he made to the fiscal year 2009 budget. 

Four departments will be hit with the lay offs, including 300 positions at the Department of Children and Family Services, 75 at the Department of Human Services, and another 75 from the Department of Natural Resources and the Historic Preservation Agency.

According to the State Journal Register (SJ-R), the lay offs will be effective December 1st.  The historic sites will close Oct. 1st and state parks Nov. 1st.

 

 
The union that represents the laid off workers, the American Federation of State, County and Municipal Employees (AFSCME) along with state lawmakers told SJ-R the layoffs and closings were unnecessarily heavy just a couple of months into the new budget year that began July 1.

"Every time I think he can't do something worse, he does," Sen. Larry Bomke, R-Springfield, said of the governor.

AFSCME warned that the cuts will put abused children and needy families at risk and further hurt parks and historic sites. It urged lawmakers to return to the Capitol soon to try to reverse them.

"These cuts are irresponsible, and they are deep," AFSCME executive director Henry Bayer said.

Department of Natural Resources spokesman Chris McCloud told the SJ-R, "This is a tough day for DNR and Illinois."  Jonathan Goldman, executive director of the Illinois Environmental Council, said state parks had about 45 million visitors last year, and the resulting loss in economic activity probably will outweigh any savings.


The following Department of Natural Resources sites are scheduled to close Nov. 1:
 

Castle Rock State Park, Oregon
 
Lowden State Park, Oregon
 
Hennepin Canal Parkway State Park, Sheffield
 
Illini State Park, Marseilles
 
Channahon Parkway State Park, Channahon
 
Gebhard Woods State Park, Morris
 
Hidden Springs State Forrest, Strasburg
 
Kickapoo State Park, Oakwood
 
Moraine View State Park, Leroy
 
Weldon Springs State Park, Clinton
 
Wolf Creek State Park, Windsor


SJ-R: A list of how the cuts will affect historic sites.
 
School Funding Reform
 
House Holds Education Funding Hearings

 
House Elementary and Secondary Education Committee chairman Mike Smith (D-Canton) is currently holding a series of hearings regarding proposals to reform the state's approach to funding public education. 

The public is invited and encouraged to attend the hearings to voice their opinion on this very important issue. 

 
  • Oak Park:  Sept. 18, 1:00 p.m., Oak Park Village Hall, 123 Madison Street
  • South Holland:  Sept. 30, 6:00 p.m., Thornwood High School, 17101 S. Park Avenue
  • Chicago:  Oct. 2, 6:00 p.m., Loyola University, 6525 N. Sheridan Road 
  • Lincolnwood:  Oct. 6, 7:00 p.m., Lincolnwood City Hall, 6900 N. Lincoln Avenue
  • Springfield:  Oct. 9, 1:00 p.m., State Capitol Room 118
     
 
"School funding is one of state government's primary functions and has wide-ranging ramifications for Illinois' future," Smith said.  "We are going to take the debate over education funding reform to the public and give taxpayers, education professionals, business and labor organizations, and civic groups a chance to have their say.  Through the information gathered at these hearings, lawmakers will be able to better weigh proposals to modify the state's education funding system."


CTBA will testify at several of the hearings as well as many of our partners at the A+ Illinois campaign.

 
Calendar
 

WHAT:
Dupage Federation on Human Services Reform, Making the Connection:  Accessing Public Benefits for Low Income Persons
WHEN: October 1, 8, 15, 22, 29
            February 18, 25
            March 4, 11, 18
            June 3, 10, 17, 24
            July 1
WHERE: All trainings held at NIU Naperville, 1120 Diehl Road, Naperville, IL
INFO: Making the Connection training sessions contain information in an easy-to-understand format regarding many programs available to assist low income persons.

Individuals who register for a Making the Connection training session now receive membership access to the Federation's newly developed Making the Connection Illinois website, www.mtcil.org.

To register and for more information please visit www.dupagefederation.org.

 

 
And Finally - Congratulations Chicago Cubs!!


Do you have something to add to the Weekly Review?
email Chrissy Mancini @
cmancini@ctbaonline.org

___________________________________________________________________________


Center for Tax and Budget Accountability

70 East Lake Street, Suite 1700
Chicago, IL  60601
312-332-1041
www.ctbaonline.org
 

 
 
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