Issue Brief: CPPRT and K-12 Education Funding in Illinois
Corporate Personal Property Replacement Tax and K-12 Education Funding in Illinois: The Intersection of Taxes and Education Policy
April 19, 2023
Between FY 2022 and FY 2023, aggregate Personal Property Replacement Tax ("PPRT")revenue for all school districts increased by a record 76 percent. As things stand today, more record growth in PPRT revenue is projected for FY 2024. That revenue is a welcome addition to school district resources, however, if the projections for FY 2024 prove to be accurate, it will mean that collectively over the FY 2020 through FY 2024 sequence, the statewide Adequacy Gap under the Evidence Based Funding formula was reduced at a significantly faster rate because the local revenue increased at a faster rate over this time period compared to the increase in state-based revenue (new Tier funding).
CTBA’s most recent report highlights how the Personal Property Replacement Tax is a relatively odd revenue source that allocates revenue to school districts in accordance with their respective collections of Personal Property Tax revenue in either 1976 or 1977 and how this revenue source has big impacts on Illinois education policy,